A New Future of Localizing Industrialization of Railway in Egypt
A Step Towards Egypt Vision 2030
Ambitious Target to Reach 50% Localization
Contributes to the Growth of Egypt’s National Income
Adopts State of the Art Technology
About National Egyptian Railway Industries Company (NERIC)
A private joint-venture company formed by a group of Egyptian companies in partnership with
Governmental entities.
The main objective of the company is to establish a rolling stock plant in a
prospective area of tentatively 300,000 m2 located in East Port Said Industrial which is part of the
Suez Canal Economic Zone.
NERIC plant will be a major milestone in Egypt’s strategic industrialization plan specially in the
rolling stock sector to achieve the goals set forth in Vision 2030. A great number of new railway
infrastructure projects are currently in the study, design or execution phase, which demonstrates
the increasing role that the railway sector will play in the coming years.
NERIC seeks the development of the rolling stock manufacturing value chain locally through deepening
the
localization of certain components with the support from the international technology providers.
Factory Planned Capacity
Phase
1
Metro Production Line
100 units per year
Phase
2
Rehabilitation Plant
125 units per year
Phase
3
Long Distance/High Speed Trains 150
units per year
The Egyptian Sovereign Fund and the Suez Canal Economic Zone Authority in partnership with Samcrete
Investments, Orascom Construction, Hassan Allam Holding, Connect Professional Services and East Port
Said Development
Company.
Shareholders
NERIC is a joint establishment between the Egyptian government and the private sector.
Localization
One of the key strategic objectives behind the establishment of NERIC is the development of a
capable
local supply base.
This would be mainly attained through leveraging on the existing potential local
industrial capabilities in Egypt. Either, within the well-established public & government
organizations,
or within the private sector SME’s or by inviting international players to establish their extended
facilities in Egypt.
The overall projected demand of the local Egyptian Market for both the Rehabilitation and
Manufacturing
facilities will be over 3000 coaches over the upcoming 10 years.
An Integrated Industrial Park facility will be available close to NERIC’s Manufacturing and
Rehabilitation Facilities in the East Port Said Area, enabling for further support within logistics,
training, facility management among many other disciplines.
Supplier development training programs, tailored to meet the specific needs of the local supply
base;
Either within generic business disciplines such as:
Business Development and Entrepreneurship.
Project Management.
Quality Management Systems.
Industrial Environmental, Health & Safety aspects.
Operations Management & Industrial Engineering.
Or within “Rolling Stock” industry specific standards, specifications and norms.
NERIC’s localization program will follow a phased approach towards achieving an ambitious long-term
objective of 50% local content within the forthcoming 10 years.
A new Regiolis regional train (R) made by power and train-making firm Alstom, is seen
next to a platform at Strasbourg's railway station, May, 21, 2014.
During the TransMEA 2021 Intelligent Transport Exhibition , the National Authority for Tunnels
and ROTEM-NERIC Consortium signed an MOU for Localization and Supply of Forty (40) Metro Train
Sets for lines 2 &3. A major step towards industrialization of rolling stock in Egypt.
NERIC is currently establishing a rolling stock manufacture facility at East Port Said Special Economic Zone
aiming to deepen and localize the railway industry in Egypt.
NERIC’s rolling stock production facility under construction
Nov 16, 2021
Realizing the dream ... NERIC’s rolling stock production facility under construction.
Egypt establishes big new rail company to localise production of
locomotives
Nov 25, 2020
Egypt’s Minister of Planning Hala El-Saeed, and Minister of Transport, Kamel El-Wazir, witnessed on
Tuesday the signing of a new contract for establishing the National Egyptian Railway Industries
Company (NERIC) between Suez Canal Economic Zone and the Sovereign Fund of Egypt along with several
private sector companies.
The Suez Canal Economic Zone and the Sovereign Fund of Egypt signed on Tuesday an agreement to
establish new rail company, named the National Egyptian Company for Railroad Industries (NERIC).
The new company will be specialised in localising the production and refurbing of locomotives in
Egypt to meet the country’s demand and increase its exports.
It is expected to invest $10 billion over the next few years, said Egypt’s Minister of Planning Hala
al-Saeed.
Al-Saeed and Minister of Transport, Kamel El-Wazir witnessed the signing ceremony in East Port Said
on the sidelines of the third edition of the Smart Transportation and Logistics Fair and Forum for
the Middle East and Africa (Trans MEA 2020).
The agreement was signed with several private sector companies, including Samcrete Investments
Holding, Hassan Allam Holding, Orascom Construction, and Connect Information Technology. Orascom
will have a 15 percent share in the new company.
One of the new company’s investments will be a 2.2 billion Egyptian pound ($140.2 million) facility
that will house three lines. One is designed to upgrade rail engines, the second is to produce metro
cars, while the third is to produce high-speed, long-distance railcars, NERIC chairman Ahmed Fekry
told reporters.
The production lines will have a capacity of 150,000 pieces of rolling stock per year. The planned
investment is part of a plan to modernise Egypt’s ailing railway network and kickstart rail exports
to other countries in the region, Fekry said.
Egypt to build $240mln rolling stock plant
Nov 25, 2020
Egypt will have its first major rolling stock production plant under an agreement signed in Cairo on
Tuesday for the creation of a joint venture with a capital of $240 million.
The General Authority for Suez Canal Economic Zone (SCZone) and the Sovereign Fund of Egypt signed
an agreement with several private-sector companies for the establishment of the National Egyptian
Railway Industries Co. (NERIC) in East Port Said, a key Egyptian export terminal on the
Mediterranean Sea.
Local media, and statements by planning and transport ministry said the private partners comprise
Samcrete Investments Holding, Hassan Allam Holding, Orascom Construction, and Connect Information
Technology.
Planning and Economic Development Minister Hala Al-Saeed said a refurbishment plant is expected to
start operation in the fourth quarter of 2021, while the locomotive factory would begin its
operations by the end of 2022.
Investments in the joint venture are expected to reach $10 billion over the coming 10 years, she
added.
Transport Minister Kamel Al-Wazir said 40 percent of the components of the rolling stock would be
locally produced and that the plant would target both the domestic and foreign markets, adding that
it also aims to attract technology and capital by global firms.
He said the factory, spread over 300,000 square metres, would be built in two stages and would have
the capacity to produce 300 units per year.
"This is one of the most important industrial projects in Egypt," the Zone's Chairman Yehya Zaki
said. "The project is expected to boost the Zone's international rating and create large investment
opportunities."
Big new rail company plans to invest USD 10 bn
Nov 25, 2020
INVESTMENT WATCH- Big new rail company plans to invest USD 10 bn + tons more rail transport
news from Cairo ICT: The Suez Canal Economic Zone and the Sovereign Fund of Egypt
signed an agreement yesterday to set up the National Egyptian Company for Railroad Industries
(NERIC) — the new company specialized in producing and refurbing locomotives — at the Cairo ICT expo
Monday, according to a Planning Ministry statement (pdf). The company is expected to invest USD 10
bn over the next few years, Planning Minister Hala El Said said.
Private sector firms look like they’ll hold the majority of the equity in the new
company, but the minority stake to be split by the SCZone and SFE will be preferred
shares that give them extra voting rights and a claim to a larger percentage of any profits or gains
on exits, El Said suggested to Kelma Akhira’s Lamees El Hadidi last night (watch, runtime: 9:09).
The minister didn’t specify the extent of the preferred voting rights or the questions on which they
might be exercised. The exact ownership breakdown among the private sector firms still isn’t clear
but the ministry statement says that Orascom Construction (OC), Samcrete, Hassan Allam Holding and
Connect Information Technology will hold stakes, with OC taking a 15% share.
The investments include a EGP 2.2 bn facility that will eventually house three lines: One to upgrade
rail engines, one to produce metro cars, and another to produce high-speed, long-distance railcars,
Chairman Ahmed Fekry said, according to the local press. The production lines will have a capacity
of 150k pieces of rolling stock per year. The planned investment is part of a plan to modernize
Egypt’s ailing railway network and kickstart rail exports to other countries in the region, Fekry
added.
Other agreements signed at the expo:
Setting up a railway signaling control center in the Technical Institute for Rail
Technology, under an agreement between the National Railways Authority and the Egyptian arm
of French manufacturer Alstom.
The christening of the New Cairo monorail station One Ninety through an agreement between
the National Tunnels Authority and Landmark Developments.
An MoU between the General Authority for Land and Dry Ports and a consortium of unnamed
American and British companies to conduct a feasibility study for the Sohag Dry Port and
logistical zone.
A training and skill transfer agreement between Huawei and Trans IT, which will see the
Chinese tech giant provide training to its staff.
Setting up a railway engineering training academy in Cairo with Bombardier Transportation,
to train new local engineering graduates.
OTHER RAILWAY NEWS: Orascom Construction will spend EUR 2 bn on the construction of the two monorail
lines for the new administrative capital and Sixth of October, CEO Osama Bishai said at the expo,
according to Al Mal. The project entails a 54-km-long monorail system connecting Nasr City with the
new administrative capital, and a 42-km line between Sixth of October and Giza. A consortium made up
of Bombardier, Orascom Construction, and Arab Contractors signed a 30-year contract for the
construction and maintenance of the lines last year. The two lines are expected to cost more than
USD 4.6 bn, USD 3 bn of which will be spent on construction and USD 1.67 bn on operating and
maintaining the lines for 30 years.
OC, Mitsubishi sign USD 800 mn contract for civil works on Cairo Metro Line 4: A
consortium of Orascom Construction and Japanese conglomerate Mitsubishi signed a USD 800 mn contract
with the Transport Ministry for railway works for the first round of Cairo Metro Line 4, OC said in
a press release (pdf). The project will be financed through a JPY-denominated loan from the Japan
International Cooperation Agency, which we previously noted is funding the first phase of the new
metro line. The OC-Mitsubishi consortium signed the agreement during this week’s TransMea 2020 expo,
which is currently underway as part of the Cairo ICT conference.
Suppliers
Local suppliers interested and willing to be an integral part of NERIC’s success story
and
potential contributions to the national, social, economic and financial future
development
driving the vision behind its establishment; are encouraged to register online using the
available e-form.
Contact Details
Head Office
ICONIA Zamalek
16 Mohamed Thakeb St.
Zamalek, Cairo, Egypt