Kamel Al-Wazir, Deputy Prime Minister for Industrial Development and Minister of Industry and Transport, has presided over the signing of a landmark syndicated loan agreement worth EGP 5bn for the National Egyptian Railway Industries Company (NERIC). The agreement was orchestrated by the National Bank of Egypt (NBE), the Commercial International Bank (CIB), and the Arab African International Bank (AAIB). Ahmed Fekry Abdel Wahab, Managing Director of NERIC; Yehia Abou El-Fotouh, Deputy CEO of NBE; Amr El-Ganayni, Deputy CEO and Executive Board Member of CIB; and Amr Touqan, Head of Investment Banking and Structured Finance at AAIB, signed the contract. The signing ceremony was attended by Walid Gamal El-Din, Chairperson of the Suez Canal Economic Zone and NERIC, and senior officials from the Ministry of Transport. Minister Al-Wazir emphasized the project's alignment with President Abdel Fattah Al-Sisi's vision to localize strategic industries, particularly railway and metro manufacturing. NERIC's factory in East Port Said spans 300,000 square meters and is divided into three phases. The first phase, currently under construction, focuses on manufacturing railway and metro carriages. The second phase will expand into producing rolling stock for monorail systems, high-speed trains, and light rail transit (LRT). The third phase will specialize in refurbishing old metro and railway carriages. Once operational, the factory, in partnership with South Korea's Hyundai Rotem, will produce 40 metro trains comprising 320 air-conditioned carriages for Cairo Metro Lines 2 and 3. The Minister also revealed ongoing negotiations to manufacture and supply 500 locally produced railway carriages under a new agreement with a leading global transportation company.
Public-Private Collaboration Gamal El-Din described the project as a model of successful public-private partnership, highlighting its contribution to industrial localization within the Suez Canal Economic Zone. NERIC's General Manager, Ahmed Al-Mufti, announced that the factory's first phase, representing an estimated investment of EGP 4.2bn, is nearing completion and is set to be inaugurated by mid-2025.
Banking Sector Commitment Abou El-Fotouh of NBE expressed pride in supporting a project that aims to transform Egypt's transportation manufacturing sector. He emphasized the initiative's alignment with Egypt's broader economic vision, which seeks to bolster local industries, reduce reliance on imports, and create job opportunities for young Egyptians. Aboul Fotouh affirmed NBE's commitment as the primary lead arranger and facility agent to advancing national projects that drive transformative change. El-Ganayni of CIB underscored the bank's pivotal role as lead arranger and account bank, describing the project as a significant milestone for industrial localization in Egypt. He reiterated CIB's dedication to promoting sustainable industrial development in line with national objectives. AAIB's representative highlighted the bank's 60+ years of expertise in investment banking and corporate financing, emphasizing its commitment to projects that localize strategic industries, reduce foreign currency dependency, and generate employment. Strategic Vision for Future The NERIC project represents a critical step in Egypt's strategic push for industrial localization. With its advanced manufacturing capabilities, the factory is poised to play a pivotal role in meeting domestic transportation needs, enhancing export potential, and fostering economic growth in the region. This collaboration among NBE, CIB, and AAIB underscores the importance of coordinated efforts between the public and private sectors in achieving Egypt's industrial and economic goals.
