Hyundai Rotem won an order to supply 320 electric vehicles worth 880 billion won in Egypt.
According to the Ministry of Land, Infrastructure and Transport on the 24th, Hyundai Rotem signed a contract to supply electric vehicles for Cairo Metro Lines 2 and 3 in Alamein City in northern Egypt on the same day (local time) with the Egyptian Tunneling Authority.
According to the contract, Hyundai Rotem will supply 320 trains (56 cars on Line 2, 264 cars on Line 3) to be used for the Cairo Metro by 2028.
The contract amount is 660 million dollars (regarding 860 billion won).
25% of the total number of trains will be produced in cooperation with Egypt’s State Railroad Industry Company (NERIC), and will also be in charge of vehicle maintenance and repair for the next eight years.
Hyundai Rotem has already participated in the Cairo Metro Lines 1, 2, and 3 project for the past 10 years, and has built trust in the Egyptian market by supplying regarding 1 trillion won worth of electric vehicles (484 cars).
This time, Hyundai Rotem won the project following bidding competition with Chinese state-owned Zhongguo Zhongche, one of the world’s largest rail car manufacturers, and CAF, a Spanish rail transport equipment manufacturer.
The government also contributed in the process of winning the order.
In February, former Minister of Land, Infrastructure and Transport Noh Hyung-wook visited Egypt and signed an MOU with the Minister of Transport for cooperation in the Korea-Egyptian railway sector and discussed the participation of Korean companies in the project.
Last month, the Ministry of Strategy and Finance and the Export-Import Bank of Korea agreed to provide loans from the External Economic Cooperation Fund (EDCF) worth US$460 million and US$100 million, respectively, and supported export finance.
Ahn Jin-ae, head of the overseas construction support division of the Ministry of Land, Infrastructure and Transport, said, “This order is an export achievement of ‘K-infra’ combining our excellent railroad vehicle technology and the government’s active order diplomacy. It is expected to greatly contribute to the creation of the domestic industrial ecosystem through entry,” he said.
Egypt’s Transport Minister Kamel el-Wazir said, “In the past, the Egyptian government had a successful experience in signing contracts with the Korean government and Hyundai Rotem.
We look forward to once once more successful cooperation.”
“This project is a symbolic achievement of Korea-Egypt economic cooperation in that it contributes to the improvement of the quality of life of the Egyptian people through the improvement of transportation infrastructure,” said Hong Jin-wook, Korean Ambassador to Egypt, who has been supporting the local government to win orders. We look forward to expanding our entry into the Egyptian market,” he said.
/yunhap news