US and Egypt Forge $235M Deal to Enhance Railway System
-
Hashim Sheikh
- . April 10, 2025
- . Update: April 10, 2025 6:05 pm
The US and Egypt now work together to improve railway systems through $235 million worth of contracts as partners in economic development. Under its deal with Progress Rail, the US railway giant stands alongside Egyptian National Railways to advance transport growth and economic ties between both nations.
The ceremony took place on the previous day at Egypt’s New Administrative Capital Ministry of Transportation with top officials present from both nations including US Ambassador Herro Mustafa Garg.
Ambassador Garg showed excitement during the ceremony because both countries would achieve economic success. United States leaders are happy to support as railway development continues in Egypt because it helps boost regional economies while creating stability.
The comprehensive modernization package includes three major components:
- A $185 million contract to modernize 1,000 diesel electric locomotives
- A 15-year agreement worth $42 million to supply parts for 141 locomotives
- A $5 million five-year technical assistance services contract for 141 diesel electric locomotives, with an option to extend for an additional five years
Employment growth will benefit both nations through better railroad networks for Egypt. The USA assists Egypt’s infrastructure development by pursuing this modernization program toward their national economic objectives.
People in the railway industry suggest that updating Egypt’s rail network will help its economy grow because goods and people need to travel within its large rail system more easily. This agreement makes one of the biggest US funding contributions to Egyptian infrastructure during the last years.