Signing a contract for the manufacture and supply of 320 vehicles for the second and third lines of the subway with the Hyundai Rotem/Nerk 25/08/2022 | 09:00 AM
On Wednesday, August 24, 2022, Prime Minister Dr. Mostafa Madbouly witnessed the signing ceremony of a contract for the manufacture and supply of 320 vehicles for the second and third lines of the metro, with 40 new trains, between the National Authority for Tunnels and the Hyundai Rotem alliance South Korean / NERC (Egyptian National Company for Railway Industry).
The signing was attended by Dr. Hala Al-Saeed, Minister of Planning and Economic Development, Lieutenant-General Engineer / Kamel Al-Wazir, Minister of Transport, Dr. Rania Al-Mashat, Minister of International Cooperation, Engineer Ahmed Samir, Minister of Trade and Industry, and the Ambassador of the Republic of South Korea in Cairo.
The agreement was signed by Major General Eng. Sherif Hassan Leil, Chairman of the Board of Directors of the National Authority for Tunnels, on the part of Hyundai Rotem, Mr. “Young Bai Lee, President and CEO of the company, and on the part of the Egyptian National Railways Industry Company (NERC) Dr. Ahmed Fikry Abdel Wahab, Managing Director of the company.
The signing contract includes (the two-year warranty), in addition to maintenance work for a period of 8 years and (1) massive lifespan for each train, with a total value of $656 million.
On the sidelines of the signing, the Prime Minister stressed that signing this contract is an important step in the framework of implementing the directives of President Abdel Fattah El-Sisi, the President of the Republic, towards the settlement of heavy industries in Egypt, including the manufacture of mobile units according to the latest methods, in line with international standards through Cooperating with major international specialized companies, and in light of the directives of the political leadership to maximize the participation of the private sector in various projects, including transportation projects.
After the signing, Lieutenant General, Engineer/ Kamel Al-Wazir, Minister of Transport, stated that the Egyptian government, represented by the Ministries of Transport and Planning, has adopted a global plan for the development and modernization of metro and electric traction trains. With the aim of strengthening the transport network in the Arab Republic of Egypt, which is necessary to support economic growth and current urban expansion, noting that this signing embodies cooperation between the state, represented by the Tunnels Authority and the Egyptian Sovereign Fund, affiliated to the Ministry of Planning and Economic Development, and the General Authority for the Economic Zone of the Suez Canal And the private sector, consisting of a number of national Egyptian companies cooperating with the three parties in establishing the National Company for Railway Industries NERIC, in addition to the international private sector represented by the South Korean Hyundai Rotem, one of the international companies in this field.
The Minister of Transport also explained that the cooperation with Hyundai includes the manufacture and supply of 40 metro trains with 320 new air-conditioned metro vehicles, with a localization rate of no less than 30%, noting that the contract comes within the framework of expanding the fleet of trains operating on the second line as well as the third line. for metro; In order to accommodate the increase in transport volumes, as the second and third lines, after their completion, are scheduled to transport about 3 million passengers/day, and cooperation with major international companies specialized in the localization of the mobile unit industry, makes Egypt the first country to manufacture mobile units in the region. Middle East and Africa.
Lieutenant-General Engineer / Kamel Al-Wazir said: The agreement contract represents the first step in realizing the dream of Egypt being one of the major industrial countries in this field, adding that the contract aims to transfer advanced technology in this industry, and open new horizons to increase national income through exporting to various countries. The world, especially the continent of Africa, in addition to providing all the needs of the huge national projects implemented by the state in the field of subway projects and electrical traction, to provide the hard currency that the state used to import these trains, and will also contribute to providing job opportunities for young people.
The minister also indicated that this contract comes as a continuation of the fruitful cooperation with the South Korean company, which had previously supplied a large number of trains to the three metro lines, as it supplied 20 air-conditioned trains for the first line, all of which entered service, and 6 trains for the second metro line entered service. The service also included the supply of 22 trains for the third line out of a total of 32 trains, noting that it is planned to receive a number of trains during the current year in cooperation with "SIMAV".
At the same time, the Minister of Transport pointed out that in the field of localizing the mobile unit industry in Egypt, a cooperation protocol had been previously signed to study the establishment of an Egyptian factory to manufacture railway passenger cars, between the Egyptian National Railways, the Spanish company "Talgo" and the company. The Egyptian National Railways Industry (NERC); In order to localize the railway industry in Egypt, in implementation of the directives of the political leadership, where the protocol includes the manufacture of 500 various passenger railway cars (100 first-class air-conditioned cars - 200 second-class air-conditioned cars - 200 advanced third-class cars) using the global “Talgo” technology as a stage The first of a total of 1,000 planned locally manufactured railway cars.
For his part, Mr. Walid Gamal El-Din, President of the General Authority for the Economic Zone of the Suez Canal, indicated that the "Nerek" project is a model of successful and effective partnership between government agencies and the private sector, and it also demonstrates the seriousness of the economic zone's steps in the file of localizing the targeted industrial sectors. ; The project is located on an area of about 300,000 square meters in the industrial zone in East Port Said, and the integration between the industrial zone and the port is one of the foundations supporting the success of the project, as are all industries that benefit from the economic zone in import and export operations through the integration between its industrial zones and its affiliated ports.
The head of the authority added that the "Nerc" company project, which aims to localize the railway industry in Egypt,