Egypt signs preliminary agreement with German Deutsche Bahn to operate electric railway

Egypt’s Ministry of Transport – represented by the National Authority for Tunnels (NAT) – has signed a preliminary agreement with a consortium of German railway company Deutsche Bahn (DB) and the Egyptian private-sector company El-Sewedi Electric on the management and operation of the country’s first high-speed electric train network.

The agreement, dubbed the main contract document, defines the basic terms for the management and operation of the three-line, high-speed electric train network in Egypt that covers 2000 kilometres, according to a statement released by the transport ministry on Tuesday.

The step comes in preparation for signing a final contract to handover the management and operation of the network to the German company for a period of 15 years, extendable for another 15 years, the statement read.

The agreement guarantees the transfer of expertise, including training Egyptian engineers and technicians, Transport Minister Kamel El-Wazir, who attended the signing ceremony held earlier today, said.

The network will be operated based on the revenue-sharing system, with 90 percent of the project workforce to be Egyptians, El-Wazir added.

Egypt has plans to promote cooperation with the private sector, from one side, and to capitalise on international companies’ know-how in the field of management and operation of modern transport projects, on the other, the transport minister stressed.

DB operates 34,000 kilometres of railways in Germany. It also operates railways in the US, the UK, Denmark, the Netherlands, Poland, Canada, Uruguay, India and the UAE.