Cairo – Mubasher: General Electric (GE) has announced signing a $575 million letter of intent (LOI) with Egypt’s Ministry of Transportation and Egyptian National Railways (ENR).
Under the deal, GE will supply 100 GE ES30ACi Light Evolution Series Locomotives that can be used for both passenger or freight rail, GE said in a statement late Saturday.
The LOI also entails a 15-year agreement for parts and technical support for GE locomotives in ENR’s new and current fleet, added to technical training aimed at enhancing local capabilities and technical skills to over 275 ENR engineers and employees in Egypt.
The deal is considered the largest-ever agreement between the parties.
In attendance of the LOI signing were Egypt’s prime minister Sherif Ismail; minister of investment and international cooperation Sahar Nasr; transportation minister Hesham Arafat; US ambassador to Egypt Robert Beecroft; ENR chairman Medhat Shousha; and GE vice chairman and CEO of GE’s Global Growth Organization John Rice.
“What is exciting about this partnership is its truly holistic nature. We are working with the Ministry of Transportation and ENR on the entire process – from ensuring a competitive financing solution with partners to the manufacture and technical support for the locomotives, and the training and development of engineers," said Rice.
Commenting on the deal, Egypt’s investment and international cooperation minister Sahar Nasr stated that through agreements such as these, “Egypt’s real potential as an investment market is made visible.”
“Our goal is to work as closely as possible with international corporations to create investment opportunities that meet the country’s needs and are reciprocal in nature. The partnership between the [Ministry of Transportation, ENR,] and GE is testament to the remarkable potential evident in the transportation sector and the unwavering commitment of the public and private sectors to realise it, and we are certain it will help drive future investments across multiple sectors.”
According to the statement, GE’s ES30ACi Light Passenger Evolution Series Locomotives are equipped with a 12-cylinder, 3,200-horsepower GE Evolution Series engine. “The locomotive delivers high power output to enable enhanced productivity and flexibility in heavy haul operations, as well as enhanced reliability.”
