Egypt signs $235M contracts with US's PRL to modernize 100 locomotives
Updated 4/10/2025 11:27:00 AM
Arab Finance: Egypt’s National Railways Authority signs three contracts with American company Progress Rail (PRL) to modernize 100 Henschel locomotives, supply spare parts for 141 units over 15 years, and provide technical support for 10 years, as per a statement.
As part of a $235 million agreement witnessed by US Ambassador to Cairo Herro Mustafa Garg, the deal falls under Egypt’s wider plan to upgrade its railway fleet and improve service quality for passengers and freight clients.
The project is also expected to boost the availability and reliability of locomotives while cutting fuel consumption and emissions.
Deputy Prime Minister and Minister of Industry and Transport Kamel El-Wazir said the contracts align with the Ministry’s strategy to enhance the traction system and expand the share of freight transported by rail, helping ease pressure on road networks and increase railway revenues.
The modernization program will see the installation of all-new locomotive components, including a new engine, EM2000 control system, electrical cabinet, air compressor, air brake system, and cooling system.
Remaining major components will be overhauled using newly supplied spare parts.
El-Wazir highlighted the operational benefits of the upgrades, noting a 50% cut in oil consumption and over 3% improvement in fuel efficiency, driven by new engine technology.
He added that the move would also help reduce spare parts inventory by phasing out discontinued components and aligning with Egypt’s EMD (JT42CWRM) fleet.
The contract also supports Egypt’s localization efforts. Overhauls of key reused parts—such as traction motors and main generators—will be carried out by the Egyptian Company for Railway Maintenance and Services (ERMAS), a subsidiary of the National Railways Authority.
This will involve using some local components and transferring expertise under Progress Rail’s supervision.
El-Wazir noted that with the latest contract, Egypt has now added 210 new locomotives to its network.
Meanwhile, 99 locomotives from the existing fleet have been rehabilitated in collaboration with major international companies.
These upgrades come alongside routine maintenance of operational units, all within the framework of the Ministry’s ongoing rail system overhaul.
Related News
