HomeBusinessSiemens Mobility inks $8.7 billion deal for high-speed rail in Egypt

Siemens Mobility inks $8.7 billion deal for high-speed rail in Egypt

A prepare passes via a station in Egypt. The mission involving Siemens Mobility will use trains that may attain a prime pace of 230 kilometers per hour, and the road shall be absolutely electrified.

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A brand new high-speed rail line is coming to Egypt, with developer Siemens Mobility saying it’ll hyperlink 60 cities throughout the nation.

The fully-electrified strains will see trains with a prime pace of 230 kilometers per hour and journey from the Crimson Sea to the Mediterranean, amongst different locations.

Based on Siemens Mobility, the electrification of the community will scale back carbon emissions by 70% when in comparison with making journeys by bus or automobile. It added that the mission would consequence on this planet’s “sixth largest high-speed rail system.”

Siemens Mobility — a individually managed firm of business big Siemens — signed the contract to develop the rail line with the Egyptian Nationwide Authority for Tunnels, in addition to consortium companions The Arab Contractors and Orascom Development.

In an announcement Saturday, Siemens Mobility mentioned its share of the mixed contract would quantity to eight.1 billion euros, or round $8.7 billion. This determine features a 2.7 billion euro contract signed in Sept. 2021 for the mission’s preliminary line.

The brand new community in Egypt shall be made up of three components: a beforehand introduced 660-kilometer line linking Ain Sokhna, on the Crimson Sea, to Alexandria and Marsa Matrouh on Egypt’s Mediterranean coast; a roughly 1,100 kilometer line between Cairo and Abu Simbel, near the border with Sudan; and a 225 kilometer stretch between Luxor and Hurghada on the Crimson Sea.

“Along with our companions, we are going to develop from scratch an entire and cutting-edge rail community that may provide a blueprint for the area on the best way to set up an built-in, sustainable, and trendy transportation system,” Michael Peter, the CEO of Siemens Mobility, mentioned.

Learn extra about vitality from CNBC Professional

The Worldwide Vitality Company has described rail as being “one of the energy-efficient transport modes.” It’s liable for 9% of worldwide motorized passenger motion and seven% of freight, the IEA says, however solely accounts for 3% of transport vitality use.

It does, nonetheless, rely closely on oil, which represented 55% of the sector’s whole vitality consumption in 2020. Underneath the IEA’s state of affairs for a net-zero vitality system by the yr 2050, oil use in rail must drop to “nearly zero” by the center of the century, being changed by electrical energy — for the overwhelming majority of rail vitality wants — and hydrogen.

On the hydrogen entrance, Siemens Mobility is one in all a number of corporations that has been engaged on hydrogen trains. Others embody East Japan Railway and European railway producer Alstom, which has already carried passengers in Germany and Austria on hydrogen trains.



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