Egypt signs 25-year agreement with Italian company for renewal of rail lines

CAIRO - 15 January 2025: Egypt's Minister of Industry and Transport, Kamel El-Wazir, witnessed the signing of an agreement to establish a new joint company between the Egyptian National Railways Authority (ENRA) and the Italian company Salcef, specializing in railway construction, renewal, and maintenance.

The new company, named "Salcef Track," will undertake projects for railway maintenance and development. The Italian Ambassador to Cairo, Michele Quaroni, was present at the signing ceremony.

This partnership aligns with the comprehensive development plan of the Ministry of Transport, which includes five strategic pillars. One key focus is the modernization of railway infrastructure to enhance safety and operational efficiency across Egypt's rail network.

The agreement was signed by Mohamed Amer, Chairman of ENRA; Valeriano Salciccia, CEO of Salcef; and Shadi Ahmed, CEO of TLC, which holds a 10% stake in the project.

Minister El-Wazir emphasized that this agreement reflects the directives of President Abdel Fattah El-Sisi to collaborate with both local and international private sectors in implementing major infrastructure projects. The aim is to introduce advanced technologies, transfer expertise, and train personnel within the Ministry of Transport to ensure high-quality execution and precision in projects.

He highlighted the significant transformation already underway in Egypt's railway system, making tangible improvements for passengers and stakeholders.

The new company will focus on railway construction and renewal using state-of-the-art machinery and equipment. Salcef will contribute advanced technologies, including a modern railway renewal train, as part of the company’s assets. The partnership aims to improve maintenance efficiency and facilitate the construction of new railway lines.

The company is expected to:

Renew 300 kilometers of rail lines and 200 switches annually, with a minimum of 100 kilometers and 70 switches each year.

Over 25 years, the company will renew 2,500 kilometers of rail lines and 1,750 switches.

Participate in constructing new railway lines in collaboration with ENRA and other sectors of the Ministry of Transport.

Expand operations to implement railway projects in Africa and the Middle East.

El-Wazir stressed that improving railway maintenance and renewal will significantly enhance passenger services and increase the efficiency of freight transportation via rail. This shift is expected to ease the burden on road networks.

Additionally, the Ministry is simultaneously modernizing its existing railway companies, such as Airtrack and Egifra, by equipping them with advanced machinery and fostering partnerships with private-sector firms to execute current and future rail projects.

Valeriano Salciccia, CEO of Salcef, expressed his enthusiasm for the partnership, noting that the company is committed to using the latest global technologies and machinery to deliver high-quality results. He emphasized that this project represents a major milestone in Salcef's collaboration with the Egyptian National Railways Authority, aiming for long-term success and further opportunities in the region.

This strategic partnership marks a significant step in Egypt’s ongoing efforts to modernize its transportation infrastructure, leveraging international expertise to build a robust, efficient, and sustainable railway network.