Through Rail-Telecom, in which SNTF holds a 51% stake and Kapsch 49%, Kapsch will transfer knowledge as well as supervise and maintain Algeria's GSM-R network and SDH fiberglass backbone. Rail-Telecom will also explore future infrastructure projects in Algeria.

The joint-venture follows a memorandum of understanding signed by Kapsch and SNTF in July 2013. Kapsch has supplied equipment for more than 3000km of lines in Algeria over the last nine years, while Algeria is planning to spend $US 26.7bn on upgrades to its railway network which could add 12,000-14,000km of new lines by 2025.

"The Maghreb region and many parts of the Middle East have developed into an important target market for us in recent years and will offer enormous potential for our sector in the future, too," says Mr Kari Kapsch, Kapsch CarrierCom CEO.