By Jhoo Dong-chan
Hyundai Rotem has inked a deal with Egypt to supply a total of 256 train cars for the Cairo Metro, the company said Monday.
The contract is expected to reach a total of 433 billion won ($380.7 million), the largest deal since Hyundai Motor Group’s rolling stock manufacturing affiliate entered the African market.
Under the deal, Hyundai Rotem will supply 256 subway cars for the Cairo Metro’s Line No. 3, and carry out their maintenance for eight years after completing the delivery.
The 256 cars are expected to connect the 45.5-kilometer east-west subway route between Cairo International Airport and Ataba Station. The scheduled delivery starts next year and will be completed by 2020.
A Hyundai Rotem official said the government played an important role in winning the bid.
“The finance ministry and the Export-Import Bank of Korea supported a financial package, helping the company take an advantageous position in the bid,” he said.
Land, Infrastructure and Transport Minister Kang Ho-in also visited Egypt last November to meet President Abdel Fattah el-Sisi. During the meeting, Kang strongly emphasized Hyundai Rotem’s advantages for the Cairo Metro Line No. 3 project.
“Some 80 Korean subcontractors are also expected to enter the African market through this project,” said the official. “It will give a huge boost to the nation’s train industry for their future overseas operations.”
Hyundai Rotem also confirmed last week that it had clinched another train supply deal for the Jakarta LRT project in Indonesia. Under the deal, it is expected to build 82 subway cars, and the volume could reach about 220 billion won ($200 million) if options for up to 55 additional cars are exercised.