Siemens lays the tracks and provides locomotives and trains – the railway operates them. With German know-how, Egypt is having the sixth largest high-speed network in the world built. It’s a billion dollar business.
Deutsche Bahn is to operate and maintain the first high-speed network in Egypt. A 15-year contract with a volume in the single-digit billion range was signed at the climate conference in Sharm el Sheikh, the group announced in Berlin. The Deutsche Bahn subsidiary DB International Operations received the order.
In a joint venture with the Egyptian company Elsewedy Electric, this will operate the infrastructure as well as high-speed, regional and freight traffic and will also take over the maintenance of stations and depots. “The new railway system drives Egypt’s economic development and ensures more climate protection, from which we all benefit,” said Niko Warbanhoff, head of the ECO Group of the railways, in which various foreign subsidiaries are bundled.
The Egyptian high-speed network is said to be 2,000 kilometers long, making it the sixth longest high-speed network in the world. The first line is to connect the metropolitan regions of Alexandria, Cairo and the future new administrative capital from 2025. “A consortium led by Siemens Mobility is building the infrastructure and delivering the vehicles for passenger transport and freight locomotives,” it said.
Siemens had already sealed the billion dollar deal in May. According to the Munich company, it is the largest order in the company’s 175-year history. The industrial group is to set up a system for high-speed trains together with two partners. The order value for the DAX group alone amounts to 8.1 billion euros.
According to the information given at the time, Siemens Mobility will deliver 41 high-speed trains, 94 regional trains and 41 freight locomotives. The construction of the rail network alone would create 40,000 jobs in Egypt. In addition, there would be almost 7,000 jobs at suppliers and in other sectors of the economy.
Deutsche Bahn is repeatedly criticized for its commitments abroad. Opponents demand that the group should concentrate on expanding the German network. Deutsche Bahn emphasized on Tuesday that the profits from the Egypt project should be reinvested in Germany.
