Home Community Insights Egypt’s $8.7bn World’s Sixth Largest Highspeed Rail System and the Lesson for Nigeria

Egypt’s $8.7bn World’s Sixth Largest Highspeed Rail System and the Lesson for Nigeria

Egypt’s $8.7bn World’s Sixth Largest Highspeed Rail System and the Lesson for Nigeria

Egypt is on course to develop a new high-speed rail line that will link 60 cities across the country. The project, which will be handled by Siemens Mobility, will put Egypt ahead of other African countries, including Nigeria, the continent’s most populated nation, when it comes to transportation.

The rail-lines will be fully-electric and the trains will have a top speed of 230 kilometers per hour, traveling from the Red Sea to the Mediterranean, among other destinations.

Besides the speed and numerous destinations, the electric system is expected to reduce carbon emission to a large extent. CNBC reported Siemens Mobility — a separately managed company of industrial giant Siemens —  saying that the electrification of the network will reduce carbon emissions by 70% when compared to making trips by bus or car. It added that the project would result in the world’s “sixth largest high-speed rail system.”

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The report said that Siemens Mobility signed the contract to develop the rail line with the Egyptian National Authority for Tunnels, as well as consortium partners The Arab Contractors and Orascom Construction.

In a statement Saturday, Siemens Mobility said its share of the combined contract would amount to 8.1 billion euros, or around $8.7 billion. This figure includes a 2.7 billion euro contract signed in Sept. 2021 for the project’s initial line.

The new network in Egypt will be made up of three parts: a previously announced 660-kilometer line linking Ain Sokhna, on the Red Sea, to Alexandria and Marsa Matrouh on Egypt’s Mediterranean coast; a roughly 1,100 kilometer line between Cairo and Abu Simbel, close to the border with Sudan; and a 225 kilometer stretch between Luxor and Hurghada on the Red Sea.

“Together with our partners, we will develop from scratch a complete and state of the art rail network that will offer a blueprint for the region on how to install an integrated, sustainable, and modern transportation system,” Michael Peter, the CEO of Siemens Mobility, said.

Compared to Nigeria with a population of more than 200 million people who rely mainly on road transportation, Egypt is creating a faster climate-friendly alternative for its over 102 million people.

CNBC quoted the International Energy Agency which described rail as being “one of the most energy-efficient transport modes.” It is responsible for 9% of worldwide motorized passenger movement and 7% of freight, the IEA says, but only accounts for 3% of transport energy use.

Fast and reliable rail transport has been touted as a panacea to Nigeria’s housing problems. Experts say the use of speed trains could cut the housing crisis in some Nigerian cities like Lagos, Abuja and Port Harcourt – as it would enable workers to travel outside the states where they work.

Unfortunately, railways in Nigeria consist of a 3,505 km Cape gauge national railway network and 669 km of standard gauge. The Cape gauge network is in poor condition due to lack of maintenance.

Although there is a huge market for rail transport service in Nigeria, the depilated infrastructure has stymied its growth and also curtailed its other benefits.

Experts have also advised the Nigerian government to tow the path of Egypt by establishing partnership with hydrogen train companies like Siemens Mobility, East Japan Railway and European railway manufacturer Alstom, to develop modern train systems that will solve its transport problems among others.

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