Egypt seals landmark agreement with U.S. firm to revamp railway
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Egypt has signed a landmark $235 million agreement with U.S.-based Progress Rail Locomotives to overhaul and modernize its aging railway infrastructure, marking a pivotal step in the country's ongoing efforts to upgrade national transportation systems and boost economic development.
The contracts, signed Wednesday in Cairo, are expected to reshape Egypt’s rail network by modernizing 100 locomotives, securing a long-term supply of critical spare parts, and providing technical support over the next decade.
Deal focuses on performance, sustainability and local industry
Witnessed by Egypt’s Minister of Transport Kamel El-Wazir and U.S. Ambassador to Egypt Herro Mustafa Garg, the agreement is divided into three key segments: a major upgrade of the Henschel locomotive fleet, a 15-year supply chain for essential components, and a 10-year technical assistance package.
According to the Ministry of Transport, the modernization of the 100 locomotives will include comprehensive replacements of engines, control systems, brake systems, and more — a near-total rebuild designed to significantly enhance reliability, reduce operating costs, and cut emissions.
“These upgraded engines will consume about 50% less oil and over 3% less fuel compared to the current models,” El-Wazir said at the ceremony. “This is a major leap in sustainability and efficiency.”
In addition to technological upgrades, the contracts emphasize industrial localization. Egypt’s state-owned Egyptian Railways Maintenance and Services (ERMAS) will play a central role in refurbishing traction motors and generators, leveraging local labor and knowledge under Progress Rail’s guidance.
A long-term vision for railway expansion
The deal is part of Egypt’s broader strategic plan to strengthen its transport sector and accommodate growing economic demands. El-Wazir noted that in addition to modernizing existing locomotives, the ministry aims to introduce 210 new locomotives and rehabilitate 99 more as part of a long-term development vision.
“These steps are crucial not just for passenger travel, but also for increasing freight movement,” the minister said. “They’ll help reduce pressure on road networks and maximize our use of rail assets.”
The modernization effort aligns with Egypt’s goal to shift more cargo transportation to rail, an initiative expected to ease traffic congestion, lower logistics costs, and reduce carbon output.
Strengthening U.S.-Egypt economic cooperation
U.S. Ambassador Herro Mustafa Garg praised the partnership as a milestone in bilateral cooperation.
“I am proud to witness the signing of these contracts that bring shared prosperity to Egypt and the United States,” she said. “Our technologies and innovations are now part of Egypt’s transport future.”
The agreements underscore America’s growing role in Egypt’s infrastructure modernization, further cementing trade and diplomatic ties between the two nations.
A model for future infrastructure partnerships
For Egypt, this deal represents more than a railway upgrade — it’s a blueprint for building stronger public-private collaborations that combine international expertise with domestic capacity.
By prioritizing local involvement and sustainable engineering, Egypt is not only revitalizing its transportation grid but also positioning itself as a regional model for infrastructure transformation.
As locomotives begin rolling out with new engines and smarter systems, the real impact may be seen beyond the tracks — in the jobs created, emissions reduced, and connections strengthened, both at home and abroad.