The number of competing offers to supply 1,300 railcars has increased to 13 international companies so far for the modernisation of Egypt’s railway fleet, according to a source at the Egyptian Railways Authority.
Two weeks ago, Assistant Transport Minister Amr Shaat said that the Egyptian Railways Authority had received seven offers, including from three Chinese companies and a Russian-Hungarian alliance, in addition to an offer from a Romanian company, one from an Italian company, and another one from a Spanish company.
The railways authority source explained that the ministry formed a committee from the Military Technical College, Egyptian universities, and the Armed Forces Engineering Authority to decide on the offers presented.
The source pointed out that the ministry seeks to agree with the supplier company to provide 100% of financing for the deal.
He expected the selection of winning companies and the signing of contracts within a period of two to three months, provided that the agreement includes the manufacture of 40% of the railcars from local components, in cooperation with factories of the Arab Organisation for Industrialisation and the Ministry of Military Production.
The railways authority has listed its needs for new railcars with 800 first class railcars, 300 air-conditioned second class railcars, and 200 economy railcars.
On the other hand, the sources explained that the railway authority is working on a number of other projects for the development of the authority, led by electrification of signals projects with investments amounting to about EGP 12.4bn.
The source expects the completion of the electrification of the signals of all lines by 2020.
