Signing of the three major railway contracts worth over $235 million by the United States and Egypt
In a landmark move set to accelerate Egypt’s railway modernization and strengthen bilateral ties, the United States and Egypt have inked three major railway contracts worth over $235 million, reinforcing a growing partnership between the two nations.
The deal, announced by the U.S. Embassy in Cairo, brings together Progress Rail, a leading American rail technology company, and Egyptian National Railways in a strategic collaboration aimed at revitalizing Egypt’s aging locomotive fleet, boosting infrastructure, and creating long-term economic opportunities.
The centerpiece of the agreement is a $185 million contract to modernize 1,000 diesel-electric locomotives, a critical upgrade for Egypt’s national railway system. Additionally, a $42 million parts supply deal will support the maintenance of 141 locomotives, while a $5 million technical assistance agreement ensures expert U.S. support over five years, with an optional five-year extension.
The signing ceremony, held at the Ministry of Transportation in Cairo, was attended by senior officials and dignitaries, including U.S. Ambassador Herro Mustafa Garg, who praised the strategic significance of the contracts.
“I am thrilled to witness the signing of these contracts, which bring mutual prosperity to Egypt and the United States,” said Ambassador Garg.
The agreements are expected to improve the efficiency, reliability, and safety of Egypt’s railways an essential mode of transport for millions and a cornerstone of the country’s development ambitions.
Beyond infrastructure, the deals are poised to support local job creation, workforce training, and enhanced trade collaboration between the two nations.