The industrial complex in East Port Said industrial zone will include a factory to rehabilitate electric trains, with an estimated capacity of 125 units per year; a factory to manufacture new metro cars, with an estimated production capacity of 150 units per year; and a facility to manufacture LRVs, with an estimated capacity of 150 units per year.

Egypt’s Ministry of Planning and Economic Development (MPED) first announced plans to establish a facility to build EMUs, DMUs and monorail trains in September.

The Egyptian Sovereign Fund and the Suez Canal Economic Zone authority (SCZone) signed an agreement with a private sector alliance, which includes Orascom Construction, Hassan Allam Holding, Connect Professional Services and Samcrete Investments, during the Trans MEA 2020 Intelligent Transport Technology Exhibition and Conference on November 24.

Egypt’s minister of planning, Mr Hala El-Saeed, says the complex is expected to generate up to $US 10bn in revenue in the coming years.

Egypt’s minister of transport, Mr Kamel Elwazir, says the agreement supports the move towards an increased level of localised content for the rail industry in the country, while also supporting an increase in exports to the surrounding region and internationally.

The 0.3km2 facility will be developed over two phases. The first phase will see the construction of the train manufacturing facilities, with the second phase seeing the development of support industries to manufacture components for the trains.

Mr Karim Sami Saad, chairman of the Board of Samcrete Investment Company, says £E 2.8bn ($US 178.5m) will be invested in the first phase over the next decade, in addition to the £E 3bn that is expected to be invested in related industries.

The first phase of the facility is expected to begin operating in the fourth quarter of 2021.