[Asia Economy Reporter Su-yeon Woo] Hyundai Rotem has been selected as the final successful bidder for the modernization project of Egypt's railway signaling system.
On the 28th, Hyundai Rotem announced that it had won the bid for the railway signaling modernization project for the section between Nag Hammadi and Luxor, major cities along the upper Nile River, with the Egyptian National Railways. The project amount is approximately 122.5 billion KRW.
This project involves modernizing the signaling systems at 14 stations over a total length of 118 km over the next three years. Hyundai Rotem will supply the latest signaling systems, including an Automatic Train Protection (ATP) system that controls the speed of following trains based on the position of preceding trains, and an Electronic Interlocking System that controls train routes via computer. Additionally, the company plans to improve overall railway facilities, including control, mechanical, and electrical equipment.
The success in this project was largely due to the trust built through supplying vehicles for subway lines 1 to 3 currently operating in Cairo, as well as financial support from the Export-Import Bank of Korea. In 2016, the Export-Import Bank of Korea decided to provide $115 million in Official Development Assistance funds for Egypt's railway signaling modernization project.
Notably, this project will include many state-of-the-art devices responsible for train safety, such as the Automatic Train Protection system and the Electronic Interlocking System. The Automatic Train Protection system controls train speed based on speed and track data relative to the position of the preceding train, while the Electronic Interlocking System controls train routes via computer to ensure safe train operation.
Hyundai Rotem plans to continuously participate in building Egypt's railway infrastructure by expanding its signaling system business as well as supplying railway vehicles. Although Egypt's annual passenger demand reaches 500 million, the signaling systems responsible for vehicle safety are severely outdated. Since 2008, the Egyptian government has been promoting a railway facility modernization plan to drastically improve the railway signaling system.
Egyptian National Railways is expected to proceed with a signaling modernization project for the 225 km section connecting the southeastern cities of Luxor and Aswan after 2022, raising expectations for additional orders. On this day, Hyundai Rotem President Lee Yong-bae and company officials visited the Egyptian Presidential Palace and expressed their commitment to additional electric train deliveries during a meeting with Egyptian President Abdel Fattah el-Sisi. President Abdel Fattah el-Sisi stated, "We look forward to establishing a strategic partnership with Korean companies like Hyundai Rotem as partners for Egypt's development."
Meanwhile, Hyundai Rotem has been expanding its market share in Egypt's railway sector by winning orders for 180 electric train cars for Cairo Line 1 in 2012, 256 electric train cars for Cairo Line 3 in 2017, and 48 electric train cars along with maintenance projects for Cairo Line 2 in 2019.
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