The U.S. Embassy in Cairo recently announced the signing of a series of contracts involving Progress Rail, a U.S.-based company, and Egyptian National Railways. The contracts, valued at over $235 million, are aimed at enhancing Egypt's railway infrastructure through significant improvements and services. This initiative marks an important step in U.S.-Egyptian business cooperation and is expected to generate employment opportunities.
A ceremony to commemorate this agreement occurred on April 9, 2025, at the Ministry of Transportation in Egypt's New Administrative Capital. The agreements entail several components, including the modernization of 1,000 diesel electric locomotives at a cost of $185 million. In addition, there is a 15-year agreement to supply parts for 141 locomotives amounting to $42 million. A five-year technical assistance services contract for these 141 diesel electric locomotives, valued at $5 million, is also part of the package, with an option to extend this contract for five more years.
Ambassador Herro Mustafa Garg, present at the event, commented, “I am thrilled to witness the signing of these contracts, which bring mutual prosperity to Egypt and the United States. The United States is proud to be part of the expanding railway infrastructure in Egypt, and our companies look forward to playing a significant role support railway infrastructure expansion, which is crucial for driving economic growth and stability in the region.”
The collaboration between the involved parties represents a significant investment in Egypt's rail network and is anticipated to strengthen the economic ties between the United States and Egypt further.