Alstom, the French leader in rail systems and rolling stock, has inked a major agreement with Egypt’s General Authority for Land and Dry Ports (GALDP) to build a 168,000-square-metre industrial complex in Borg El Arab. This marks a significant step forward in the country’s localisation of rail infrastructure production.

The announcement was made during French President Emmanuel Macron’s visit to Egypt, and reflects deepening industrial ties between the two nations and long-term industrial strategy. For the MEP sector, this represents a high-value opportunity.

The Scope of the Contract

Under a usufruct agreement, Alstom will develop the 168,000 sq m site into a dual-facility hub. The complex will house two facilities:

The first plant, covering 54,600 sq m, will be dedicated to the production of electrical systems such as signalling components, wiring, cabling systems and control panels—core elements for railway infrastructure.

The second facility will focus on manufacturing rolling stock, including light rail transit vehicles, monorails, and high-speed trains —all of which demand advanced MEP coordination, both during and after construction.

The size and nature of the facility require integrated services across high-voltage power distribution, HVAC for large-volume manufacturing spaces, advanced fire safety and suppression systems, and compressed air and drainage systems necessary for heavy industrial operations.

A separate agreement with Egypt’s General Authority for Investment and Free Zones (GAFI) was also signed to support and streamline the development process. The project underlines Egypt’s ambition to become a regional hub for railway production and export.

Additional context

In March, Egypt’s Cabinet confirmed that the Borg El Arab complex was approved as a private freezone project—a status granted only to projects of strategic significance. Such projects must export at least 80% of production and include 30% local components.

The manufacturing complex spans over 40,000 feddans (~41,500 acres), and production is scheduled to begin in Q1 2027. Rowad Modern Engineering has been awarded the construction contract for one of the two plants and has already commenced work. The main tender for the larger manufacturing facility has not yet been issued.

The Big Picture

Given the project’s scale and focus on localisation, there will likely be collaboration with Egyptian and regional MEP consultants, contractors, and technology providers. The government’s support, alongside Alstom’s global standards, will push demand for smart automation, energy-efficient systems, and compliance with international safety codes.

The facility will also become a template for future industrial railway parks across the MENA region, giving MEP players not only immediate business scope but long-term positioning in a growing sector. Egypt is undergoing a massive infrastructure transformation—this project could serve as a flagship in rail manufacturing with a ripple effect across the supply chain.

For MEP professionals and firms eyeing industrial projects with complexity, scale, and future-readiness, this is more than a contract—it’s a gateway into a sector where transport meets infrastructure at full speed.