A consortium led by Siemens has landed a multi-billion dollar contract in Egypt with the support of the German government.

The government announced on Wednesday that the companies are to build a rail system for high-speed trains for $ 4.5 billion.

The route should extend from the Red Sea to the Mediterranean coast.

The Siemens subsidiary Siemens Mobility put its share at around three billion dollars.

The first trains are to be delivered in mid to late 2023.

The completion of the entire contract is planned for 2027.

In a video conference with journalists, Siemens CEO Roland Busch described the project as a “Suez Canal on rails” for the country's economy.

In total, it is a distance of 1,800 kilometers.

15,000 jobs

The contracts for a first section of 660 kilometers were signed on Wednesday, which will connect Alexandria on the Mediterranean Sea and the port city of Ain Sukhna on the Red Sea.

For this alone, the planners expect over 30 million passengers a year.

The travel time will be cut by around half.

"That will improve the everyday lives of millions of Egyptians."

The two additional routes are to connect the capital Cairo with its 20 million inhabitants along the Nile with Aswan and Luxor via Hurghada with Safaga.

Negotiations on this should be concluded in the coming months.

A project of this size cannot be done without political support.

"I would like to express my sincere thanks for the active and excellent support from the Federal Government and, in particular, the Federal Chancellor," stressed Busch.

In addition to Siemens, two Chinese consortia and the French Alstom group had applied for the major order.

The consortium will create more than 15,000 jobs locally, said Busch.

According to the group, half of the added value comes from Germany.

The trains are built in Krefeld, the locomotives for freight traffic in Krefeld and Munich, and the signaling technology comes from Braunschweig, explained Siemens Mobility boss Michael Peter.

The Egyptians bought “the most modern of the modern”.

Siemens Mobility is building the country's first high-speed line with electrified passenger and freight traffic in Egypt.

Together with the partner companies Orascom Construction SAE and The Arab Contractors, Siemens Mobility will take over the turnkey development including design, installation and commissioning as well as maintenance services over a period of 15 years.