The line can be lengthened to Libya's Benghazi through Egypt's Saloum town.
The total cost is LE360 billion.
The ministry signed with the American firm a deal worth $602.05 million.
That is to inhibit passengers from boarding without purchasing tickets.
The railway dubbed LRT extends over 90 kilometers and encompasses 16 stations.
A new batch carrying 22 Russian train vehicles has arrived Tuesday at Alexandria Port, as part of a 1,300 vehicle-deal; the largest deal in Egypt's historic railway system.
Ministry of Transport launched an initiative to raise awareness on the necessity of wearing masks while using the metro or the train for daily travels.
The total of units delivered of that category rises to 138
Before applying fines 20 months ago, the number of passengers who committed such violation was 50 million per annum.
The new trains will operate between Alexandria and Aswan passing through all governorates in between.
When those units arrive, the total number of railcars delivered of that category will be 121.
Both ministers began by discussing ways of acquiring funding to finance the feasibility studies.
Investments in the railway sector are projected to be LE142 billion over one decade between 2014 and 2024.
By the end of October, Egypt is expected to receive 17 new locomotives.
A batch of Transmashholding railcars arrived to the Port of Alexandria on Wednesday.
The company will manufacture and supply 100 locomotives to support air-conditioned trains operating on long lines.
As a result of the derailment, a carriage fall, but cranes managed to lift it; meanwhile, a tractor dragged the train back to its normal course on the tracks, the official said, adding that no human or financial causalities were reported.
A new batch of 18 Russian carriages, is scheduled to arrive at Alexandria Port by the end of this month.
Senior citizens above 70 years of age have been exempt from the metro ticket, while those above 60 will have a 50 percent discount upon showing their national ID.
A company was established under the name of “The Egyptian National Railways Industries” to undertake the establishment and the operation of the factory.