Egypt begins Suez Canal on Rails railway of 660 km at 250 km/h connecting the Red Sea to the Mediterranean with Siemens and $4.5 billion

Egypt begins laying tracks for the 660 km railway at 250 km/h connecting the Red Sea to the Mediterranean, becoming Africa’s largest railway project

According to a report by the TS2.tech portal published on May 15, 2026, Egypt has begun laying tracks for the Suez Canal on Rails railway. The line will span 660 kilometers at 230-250 km/h.

As announced by the Minister of Transport and Industry Kamel El-Wazir, the project connects Ain Sokhna on the Red Sea to Alexandria and Marsa Matrouh on the Mediterranean. The execution is being carried out with Germany’s Siemens Mobility.

Train of the Suez Canal on Rails railway cutting through the Egyptian desert under an orange sky — Conceptual rendering of the Siemens Velaro train operating in the Egyptian desert. Credit: Siemens Mobility.

How the Suez Canal on Rails railway works

According to the official route released, the main line is 660 km long. It crosses the country from east to west, from the Gulf of Suez to the northern coast.

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Investment of $4.5 billion in the first phase

According to the Egyptian government, the first phase receives $4.5 billion in confirmed investments. In comparison, the global contract with Siemens amounts to €8.1 billion.

According to the current exchange rate, the total package is approximately $8.7 billion. The contract covers the 2,000 km of the entire railway network planned by Egypt.

Therefore, the 660 km line is just the first corridor. The two subsequent extensions total an additional 1,340 km, starting after this first stage.

660 km of extension in the first phase, with 13 intermediate stations.
230-250 km/h commercial speed on a dual electrified track at 25 kV AC.
$4.5 billion in confirmed investment for the initial segment.
€8.1 billion in total contract with Siemens for 2,000 km of complete network.
2026-2028 as the delivery window for the first phase, according to the official schedule.
500 million projected annual passengers at full capacity.

Aerial view of the Suez Canal in Egypt showing the logistics corridor that the Suez Canal on Rails railway intends to complement — Aerial view of the Suez Canal. The Suez Canal on Rails railway opens a parallel land route to the waterway. Editorial credit.

Siemens delivers Velaro adapted to the desert

According to Siemens’ technical documentation, the supplier delivers Velaro trains adapted to the desert climate. The model has an expanded operational temperature and reinforced sand filters.

The Velaro trains arrive configured in 8-car compositions, according to the manufacturer. Each composition has a capacity of between 460 and 500 passengers, in European standard.

For freight operations, Siemens has sized Vectron MS locomotives. Therefore, the mixed traction operates in electrified and diesel corridors.

“We are delivering an integrated system that changes the regional logistics of North Africa,” said Kamel El-Wazir at a press conference in Cairo. The statement was reproduced by the TS2.tech portal.

According to the minister, the project employs 40,000 workers at the peak of construction. Meanwhile, Siemens describes the contract as the largest railway package outside Europe.

According to the executive responsible for the project, Karin Buchholz, the initiative is “a reinvention of the transcontinental logistics corridor concept.” The statement is included in the institutional material of Siemens Mobility.

What changes between the Red Sea and the Mediterranean

According to data from the Suez Canal Authority, Houthi attacks in the Red Sea in 2024 and 2025 reduced canal traffic by up to 70%. Therefore, the railway emerges as a logistical hedge against new crises.

In comparison, maritime transport between Ain Sokhna and Alexandria takes about 30 hours via the canal. The railway promises to cover the stretch in just over 3 hours in passenger mode.

Meanwhile, freight is expected to take 7 hours by rail. Thus, European operators gain a redundant land route between the two seas.

According to a World Bank estimate cited in a regional logistics report, the time reduction frees up port capacity. Ain Sokhna and Alexandria have been operating above 90% of nominal capacity since 2023.

Therefore, Italian MSC and French CMA CGM already maintain preliminary contracts. According to the TS2.tech report, both have reserved slots in the future freight network.

Workers laying tracks for the Suez Canal on Rails on concrete sleepers in the Egyptian desert — Construction site during track laying between Cairo and Alexandria. Credit: Egyptian Ministry of Transport.

Suez Canal on Rails in Egyptian industrial policy

According to the Egypt Vision 2030 plan, launched by President Abdel Fattah el-Sisi in 2016, the country is investing $230 billion in infrastructure by the end of the decade. The focus is on transportation, energy, and housing.

Additionally, the railway connects to other symbolic projects, such as the New Administrative Capital. According to the official budget, the cost of this city reaches $58 billion.

Therefore, the government seeks to diversify the economy beyond Suez Canal revenues. The new network signals logistical independence from maritime traffic.

According to the financial scheme, the investment combines Egyptian resources, World Bank loans, and German credit lines. Thus, the immediate fiscal pressure on Cairo’s budget is reduced.

Therefore, regional analysts classify the project as a geopolitical showcase. Egypt signals to the market its ability to execute railway projects on a continental scale.

Global comparisons of the corridor

In terms of length, the Egyptian section of 660 km surpasses the future Lima-Cusco line in Peru (450 km). According to public data, it falls below the French Atlantic TGV (1,060 km).

Compared to the European average of 250 km/h, the Egyptian system is comparable. According to the International Union of Railways, Africa currently has less than 100 km of high-speed lines.

Therefore, the Egyptian project multiplies this number by 6 in the initial stretch. Thus, the continent gains for the first time a globally competitive corridor.

Compared to the Norwegian E39 highway mega-project, with 1,100 km and 33 billion euros, the Egyptian corridor has a lower unit cost per kilometer.

In the Middle East, the closest reference is the Saudi NEOM with 2 tunnels of 28 km in the linear city The Line. Therefore, Riyadh and Cairo indirectly compete for the title of Arab logistics hub.

Modern station of the Suez Canal on Rails surrounded by palm trees and sand in the Egyptian desert — Rendering of the intermediate station in the New Administrative Capital. Credit: Siemens Mobility.

Technical and financial risks ahead

According to local engineers, the 2026-2028 schedule faces concrete challenges. The logistics of laying tracks in a desert environment requires continuous thermal treatment of the tracks.

Additionally, currency tension pressures financing. According to the Central Bank, the Egyptian pound lost about 60% of its value against the dollar between 2022 and 2025.

On the other hand, observers point to maintenance risks. Operating trains at 250 km/h in a corridor with recurring sandstorms requires strict protocols.

However, at the time of the contract signing in 2018, Siemens included technology transfer clauses. The program trains 600 Egyptian engineers in German centers by 2028.

What comes after the first phase

According to El-Wazir, Egypt plans to tender the second phase still in 2026. The 540 km between Cairo, Luxor, and Aswan are under study, with an additional investment estimated at $3 billion.

Meanwhile, the third section connects Hurghada to Safaga on the Red Sea. Thus, the tripartite network would link the two seas, the Nile, and the southern tourist hubs.

According to the minister, the final goal is to shift 30% of domestic freight from road to rail by 2035. Therefore, the change would reduce emissions and accidents on Egyptian roads.

However, the execution pace depends on external variables. Can Egypt maintain the 2026-2028 schedule amid currency pressure and unprecedented technical demands for the African continent?

Egypt begins Suez Canal on Rails railway of 660 km at 250 km/h connecting the Red Sea to the Mediterranean with Siemens and $4.5 billion

Egypt begins laying tracks for the 660 km railway at 250 km/h connecting the Red Sea to the Mediterranean, becoming Africa’s largest railway project

How the Suez Canal on Rails railway works

Investment of $4.5 billion in the first phase

Siemens delivers Velaro adapted to the desert

What changes between the Red Sea and the Mediterranean

Suez Canal on Rails in Egyptian industrial policy

Global comparisons of the corridor

Technical and financial risks ahead

What comes after the first phase

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Egypt begins Suez Canal on Rails railway of 660 km at 250 km/h connecting the Red Sea to the Mediterranean with Siemens and $4.5 billion

Egypt begins laying tracks for the 660 km railway at 250 km/h connecting the Red Sea to the Mediterranean, becoming Africa’s largest railway project

How the Suez Canal on Rails railway works

Investment of $4.5 billion in the first phase

Siemens delivers Velaro adapted to the desert

What changes between the Red Sea and the Mediterranean

Suez Canal on Rails in Egyptian industrial policy

Global comparisons of the corridor

Technical and financial risks ahead

What comes after the first phase

A Chinese factory in Guangdong is assembling a humanoid robot every 30 minutes while Tesla, Figure, and Boston Dynamics still struggle to deliver 10 thousand per year.

While an average building in London or New York takes three years to be completed, in China a 26-story tower went up in five days with about 100 workers, and the global modular construction market already moves US$ 95 billion per year.

Australia installs giant concrete structures on the seabed 800 meters from the shore to create an ocean intake for desalination that will draw in saltwater and produce 30 million liters of drinking water per day.

Secret chamber sealed 4,500 years ago found in the Pyramid of Khufu, and Hawass announces its opening to the world in 2026

A public school student single-handedly created a machine capable of treating water for up to 50 people using only solar energy. It was awarded third place at one of the most important science fairs in the world.

Germany installed vertical solar panels on a lake in Bavaria, and the result broke conventional logic: instead of producing energy at midday peak, the plant generates more early in the morning and in the evening, exactly when families turn on appliances and factories are in full swing.

China has begun the second phase of energy assistance to Cuba with a 120 MW solar generation plan, and the first result is a photovoltaic park with batteries that regulates voltage, controls frequency, and provides local autonomy to an island suffocated by chronic blackouts.

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