Bombardier Egypt deal for Derby-built trains gets £1.7bn boost
A deal which will see Bombardier export Derby-built trains to Egypt has received a £1.7 billion boost from the Government.
A consortium led by the Litchurch Lane company has confirmed a deal with the Egyptian Government to build two new monorails thanks to the financial backing from UK Export Finance (UKEF).
The financial guarantee means that Bombardier can now invest in its manufacturing centre in Derby where the trains for the Egyptian monorails will be designed and built.
Matt Byrne, president of Bombardier Transportation (UK and Ireland), said: “The Cairo Monorail export win, against international competition, shows that the UK rail sector can fight and win in key growth markets such as sustainable transport.
“This is the first UK export since our Derby-built trains were exported to South Africa for the Gautrain project in 2008.
“Thanks to UKEF’s support and those working in embassies across North Africa, this new deal will bring sustainable benefits to Egypt and create job opportunities in the UK.”
Bombardier’s consortium was named preferred bidder for the project at the 2020 UK-Africa Investment Summit.
UKEF’s guarantee, the largest amount of financing it has ever provided for an overseas infrastructure project, allows Bombardier to fulfil the contract and start production.
Once up and running at Litchurch Lane, it will be the UK’s only monorail car production line and will directly support 100 jobs at the company and many more in its UK supply chain.
Bombardier employs 4,000 people in the UK, with around 2,000 in Derby including over 400 specialised engineers, who develop and build trains for rail franchises across Britain.
This expertise will be used to build and maintain two electrified monorails that together will transport millions of people every year in the Cairo metropolitan area. The new lines will connect the New Administrative City with East Cairo and 6th October City with Giza.
International Trade Secretary Liz Truss said: “Trade is an incredibly powerful way to propel growth and create jobs as we recover from the pandemic.
“This deal shows why we are so determined to get businesses to grasp these opportunities and take advantage of the support available from the Government.
“One third of our economy is exports. That’s why support from our export credit agency is vital.
“It can help the UK get a bigger slice of the global economic pie, secure jobs across the country and make the most of our newfound independence as a trading nation.”