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Sunday, 18 June 2017

GE lands USD 575 mn contract to supply Egypt with 100 locomotives

GE lands USD 575 mn contract to supply Egypt with 100 locomotives: General Electric signed a USD 575 mn agreement with the Egyptian Railway Authority on Saturday that will see it deliver 100 locomotives to the country, according to a cabinet statement. The locomotives are part of a plan to have “25 mn tonnes of goods transported via railway by 2022,” Reuters reports, citing remarks by Transport Minister Hisham Arafat. The first batch of 25 locomotives will arrive in 2018, Arafat said.

The agreement will be financed with the help of Canadian export-credit agency Export Development Canada, according to Bloomberg and also covers upgrades to 81 old GE locomotives and 15 years of maintenance services for both new and old fleets, providing everything from tech support to spare parts.

The agreement is “evidence that Egypt is open for business,” GE Vice-Chairman John Rice told Bloomberg in a phone interview from Cairo. GE is looking to invest further in Egypt, especially as reforms improve the country’s business climate, Rice told Prime Minister Sherif Ismail during a Saturday meeting.

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