Egypt: German company selects Chinese company to win high-speed train project in Egypt

In what would raise hopes of avoiding the Chinese debt trap in the developing world, a consortium led by the German multinational engineering company beat the Chinese and won a 4.5 billion contract. euros to build a high-speed rail line in Egypt, a state in the Arab world.

The railway line will be built from Ain Sukhna to the southern end of the Suez Canal, to Alexandria and the port city of Marsa Matrouh – from the Red Sea to the Mediterranean Sea in Egypt, according to a special report in the main German magazine Der Spiegel.

Siemens would have foiled a Chinese competitor for the project, according to the Der Spiegel report. “The project, which is backed by a Hermes loan guarantee from the German government, enjoys broad political support in Berlin…”, according to the report.

There are millions of Egyptians who will benefit from this railway project. The line is expected to be completed in 2027 and will then be extended upstream to Luxor and the resort town of Hurghada, according to Der Spiegel.

It will also stimulate the economy and create jobs for around 15,000 people in Egypt initially, according to estimates provided by the Siemens project manager. Two Egyptian companies have been commissioned to construct the road, and the project is progressing rapidly, according to the report.

“The order recalls the major infrastructure projects that German companies built in the region in the 1960s and 1970s, traces of which can still be seen today in Saudi Arabia, Iran, Iraq and Nigeria,” wrote Der Spiegel.

China has invested in the Mediterranean region. Chinese companies operate port terminals in Haifa, Israel, Port Said, Egypt, and Piraeus, Greece. Chinese companies have built a complex of mosques in Algeria and solar parks in Morocco. But a railway project in Israel by China has never started yet.

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