Egypt’s General Authority for Suez Canal Economic Zone (SCZone) is planning to increase the percentage of local components of locomotives to 45 percent through a newly establish company, President of SCZone, Yehia Zaki said on Monday.
SCZone has recently signed an agreement to establish the National Egyptian Railway Industries Co. (NERIC) in East Port Said with investments of $240 million.
The metro car rehabilitation factory is expected to start operation in the fourth quarter (Q4) of 2021, while the monorail and train car assembly factory is projected to begin its operations by Q4-22.
The project aims at localising the production of locomotives in Egypt to meet the country’s demand and increase its exports.
The investment cost of the first phase of the project is estimated at 2.8 billion Egyptian pounds, while the second phase, which will be implemented over the next 10 years, is expected to have an investment cost of about 3 billion pounds.
