Developing Local Railway Industry: Spotlighting Egyptian Railway Industries Company (NERIC)

Rather than stigmatising her local rail companies , Egyptian government partnered with local Industry players to set up a rail corporation , actively promoting rail Industry through supportive policies , laws and financing.

Smart governments worldwide design policies and programmes to develop various sub-sectors of the economy. This is focussed on expanding national economic base, deepwn GDP growth, create jobs and expand prosperity. Egypt is another country intelligently developing her railway Industry.

The National Egyptian Railway Industries Company (NERIC) is a private joint-venture company formed by a group of Egyptian companies in partnership with Governmental entities.

The main objective of the company is to establish a rolling stock plant in a prospective area of tentatively 300,000 m2 located in East Port Said Industrial which is part of the Suez Canal Economic Zone.

NERIC plant is to be a major milestone in Egypt’s strategic industrialization plan specially in the rolling stock sector to achieve the goals set forth in Vision 2030. A great number of new railway infrastructure projects are currently in the study, design or execution phase, which demonstrates the increasing role that the railway sector will play in the coming years.It seeks the development of the rolling stock manufacturing value chain locally through deepening the localization of certain components with the support from the international technology providers.

The corporation was formed through a partnership involving Egyptian Sovereign Fund and the Suez Canal Economic Zone Authority with private entities like Samcrete Investments, Orascom Construction, Hassan Allam Holding, Connect Professional Services and East Port Said Development Company.

NERIC is a joint establishment between the Egyptian government and the private sector to achieve localization within the industry.

One of the key strategic objectives behind the establishment of NERIC is the development of a capable local supply base.
This would be mainly attained through leveraging on the existing potential local industrial capabilities in Egypt. Either, within the well-established public & government organizations, or within the private sector SME’s or by inviting international players to establish their extended facilities in Egypt.

The overall projected demand of the local Egyptian Market for both the Rehabilitation and Manufacturing facilities will be over 3000 coaches over the upcoming 10 years.
An Integrated Industrial Park facility will be available close to NERIC’s Manufacturing and Rehabilitation Facilities in the EAST PORT SAID Area, enabling for further support within logistics, training, facility management among many other disciplines.

Supplier development training programs, tailored to meet the specific needs of the local supply base; either within generic business disciplines such as:Business Development and Entrepreneurship; Project Management, Quality Management Systems. Industrial Environmental, Health & Safety aspects, Operations Management & Industrial Engineering or within “Rolling Stock” industry specific standards.

NERIC’s localization program will follow a phased approach towards achieving an ambitious long-term objective of 50% local content within the forthcoming 10 years.

Some steps towards local industrial capacity development include the setting up a railway signaling control center in the Technical Institute for Rail Technology, under an agreement between the National Railways Authority and the Egyptian arm of French manufacturer Alstom; a training and skill transfer agreement between Huawei and Trans IT, which will see the Chinese tech giant provide training to its staff; and the setting up a railway engineering training academy in Cairo with Bombardier Transportation, to train new local engineering graduates.

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