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Egypt Signs EUR 690 Million Rail Modernization Agreements

June 19, 2026

Egypt has signed four agreements worth EUR 690 million (EGP 39.48 billion) to modernize two major railway freight corridors linking industrial zones, dry ports, and seaports, according to an announcement by French rail manufacturer Alstom on Friday, 19 June.

The agreements, signed between Egyptian National Railways (ENR) and a consortium led by Alstom alongside Egyptian firms Rowad Modern Engineering and Concrete Plus, will upgrade the 6th of October City–Alexandria corridor and the Belbes–10th of Ramadan railway line.

According to Alstom, the projects aim to improve freight movement, strengthen national logistics, and enhance connectivity between industrial hubs and key ports on both the Mediterranean and Red Sea coasts.

The larger of the two projects, valued at EUR 550 million (EGP 31.47 billion), will modernize the railway corridor connecting 6th of October City and Alexandria through new digital signalling systems, upgraded telecommunications infrastructure, reinforced power systems, and track rehabilitation. The upgrades are expected to reduce travel times along the route by nearly 80 minutes.

A second project, worth EUR 140 million (EGP 8.01 billion), will modernize the Belbes–10th of Ramadan railway line, improving freight transport to one of Egypt’s largest industrial zones.

Alstom said it will oversee the engineering, design, installation, testing, and commissioning of the new railway systems, while Egyptian companies will carry out the civil works and track upgrades. Around 50 percent of the project is expected to rely on local content.

In a statement, Martin Vaujour, President of Alstom for Africa, the Middle East and Central Asia, described “the contracts as among Egypt’s most significant railway modernization projects”, adding that “they would contribute to building a more resilient and efficient rail network.”

The agreements form part of Egypt’s broader strategy to develop an integrated logistics network under Egypt Vision 2030 by expanding rail infrastructure and improving connections between industrial areas, dry ports, and seaports.

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