Stock Groups

Siemens Mobility inks $8.7 billion deal for high-speed rail in Egypt


Train passes by a Cairo station. Siemens Mobility trains can travel at a speed of 230km/h, while the entire line will be electrified.

Paulvinten | Istock | Getty Images

Siemens Mobility has revealed that a high-speed rail link will be built in Egypt. It is expected to connect 60 cities.

Fully-electrified trains will travel at speeds of up to 230 km/h and reach destinations such as the Mediterranean, the Red Sea, and the Mediterranean.

Siemens Mobility estimates that electrification of this network will decrease carbon emissions by 70% compared with trips taken by car, bus or train. The project will create the “sixth-largest high-speed rail network in the world,” according to Siemens Mobility.

Siemens Mobility — a separately managed company of industrial giant Siemens — signed the contract to develop the rail line with the Egyptian National Authority for Tunnels, as well as consortium partners The Arab Contractors and Orascom Construction.

Siemens Mobility announced Saturday that its part of the total contract will amount to 8.3 billion Euros, which is approximately $8.7 Billion. This includes the 2.7billion euro contract that Siemens Mobility signed in Sept. 2021 to fund its initial line.

The three-part new Egypt network will consist of three components: the previously announced, 660-kilometer long line connecting Ain Sokhna and Alexandria on Egypt’s Mediterranean Coast; the roughly 1,100-kilometer line between Cairo, Abu Simbel and Cairo, near the Sudan border; and the 225-kilometer stretch linking Luxor and Hurghada at the Red Sea.

Michael Peter, CEO of Siemens Mobility said, “Together, with our partners we will create from scratch a complete, state-of-the art rail network that will provide a blueprint to the region on how you can install an integrated sustainable and modern transportation system.”

CNBC Pro has more information about energy

International Energy Agency describes rail as “one the most efficient transportation modes.” The IEA states that rail is responsible for 9% worldwide motorized passenger traffic and 7% freight. However, it only represents 3% of total transport energy consumption.

However, it still relies heavily on oil which accounted for 55% of its total energy consumption in 2020. Under the IEA’s scenario for a net-zero energy system by the year 2050, oil use in rail would have to drop to “almost zero” by the middle of the century, being replaced by electricity — for the vast majority of rail energy needs — and hydrogen.

Siemens Mobility, one of many companies involved in hydrogen train development is one. East Japan Railway is another company. AlstomThe carries passengers on the hydrogen train in Germany and Austria.