U.S.-Egypt partnership strengthened with $235 million railway contracts

The U.S. Embassy in Cairo has announced the successful signing of three major contracts between Progress Rail, an American company, and Egyptian National Railways, collectively valued at over $235 million.

The agreements, which were formalized on Wednesday, April 9, 2025, at the Ministry of Transportation, mark a significant step in enhancing U.S.-Egyptian business relations while contributing to Egypt’s railway infrastructure development and job creation.

The contracts involve a comprehensive set of services, including the $185 million modernization of 1,000 diesel electric locomotives. Additionally, a $42 million deal ensures the long-term supply of parts for 141 locomotives, while a further $5 million contract outlines five years of technical assistance, with the option of a five-year extension. These agreements will significantly improve Egypt’s railway sector, which is a key driver of economic growth and regional stability.

Ambassador Herro Mustafa Garg expressed her enthusiasm at the signing ceremony, highlighting the importance of these contracts for both nations. “I am thrilled to witness the signing of these contracts, which bring mutual prosperity to Egypt and the United States,” said Garg. She emphasized the U.S.’s commitment to supporting Egypt’s expanding railway infrastructure, recognizing its crucial role in fostering economic development across the region.