Transport

Orascom wins deals as Egypt steps up transport ambitions

November 7, 2023, 11:36 AM

The National Authority for Tunnels has hired Orascom to carry out work on the Greater Cairo Metro Line 4 expansion train tunnel — The National Authority for Tunnels has hired Orascom to carry out work on the Greater Cairo Metro Line 4 expansion

Two major projects planned
Funding from Japan
Deal includes new routes

Orascom Construction has signed new contracts to work on two major transport projects in Egypt.

The National Authority for Tunnels has hired the Cairo-based builder to carry out all civil works for a package of the Greater Cairo Metro Line 4 expansion.

Orascom said in a filing to Nasdaq Dubai – where its share price remained unchanged in early trading on Tuesday – that the Metro Line 4 work relates to a new line from Giza to Fustat, which connects to the existing network.

A significant portion of this project will be funded by the Japan International Cooperation Agency, it added.

In May, Egypt signed its largest investment package, worth $734 million, with Japan. This package is intended to support the North African country’s transport development plan, including the metro expansion.

Egypt’s ageing rail network has been blighted by accidents due to negligence and lack of maintenance. In 2021, for example, dozens were killed and several hundred were injured in at least three crashes.

With more than 8,000km of track, the railway is nonetheless the backbone of Egypt’s transportation strategy, carrying almost 314 million passengers annually.

Orascom said that it will also lead a joint venture to execute the mechanical, electromechanical and plumbing works for all stations of a new high-speed rail system, which will run from Ain Sokhna on the Red Sea to Marsa Matruh on the Mediterranean.

Egypt has no operational high-speed rail links, but a project was launched in 2018 to construct three lines with a total length of about 2,000km.

The company said the new contracts “reinforce” its leadership in the transport sector, having previously announced deals to work on other components of both projects.

In September, it signed a deal with Egyptian National Railways to upgrade the Cairo-Beni Suef railway corridor in Egypt, as part of a consortium.