By Ebi Kesiena
Hungary’s railway industry has achieved a historic milestone with its largest international order to date, as part of a major industrial cooperation deal with Egypt. The agreement, valued at €1.1 billion, marks a significant boost for Hungary’s railway sector and strengthens the bilateral partnership between the two nations.
Hungarian Minister of Foreign Affairs and Trade, Péter Szijjártó, announced the development during his visit to Cairo on Monday, highlighting the strategic nature of the collaboration.
“Industrial cooperation worth hundreds of billions of forints is taking place between Hungary and Egypt. This partnership not only advances our political and economic ties but also enhances Hungary’s industrial capabilities on a global scale,” Szijjártó stated.
Under the agreement, 1,350 railway passenger wagons will be produced in Dunakeszi, Hungary, for use in Egypt’s railway system. Initially part of a Hungarian-Russian collaboration, the project transitioned into a Hungarian-Egyptian initiative due to international sanctions on Russia.
To date, 1,015 wagons have been delivered, with the remaining 335 currently under production. The final batch is expected to be completed by August 2026, ensuring that Hungarian-manufactured wagons will play a key role in Egypt’s rail transport system.
“This is a tremendous opportunity for Hungary’s industrial sector. Approximately 900 workers are involved in the project, and more than 450 companies are contributing to the supply chain,” Szijjártó noted.
Expansion into the African Market
The Hungarian Minister emphasised that the successful execution of this project could pave the way for further expansion into the African market. With the continent experiencing rapid population growth and increased demand for infrastructure development, Hungary’s railway industry is well-positioned to secure additional large-scale contracts.
“Africa represents a vast and growing market with increasing needs for railway investments. If this project is successful, it will create further opportunities for Hungarian companies to participate in major infrastructure projects across the continent,” he said.
Beyond economic cooperation, Szijjártó explained that Egypt holds a strategic position for both Hungary and the European Union, particularly in addressing migration challenges.
“The responsible policies of the Egyptian government have played a crucial role in managing migration pressures on Europe. We call on the European Union to fulfil its commitment and disburse the €4 billion pledged to Egypt without delay,” he urged.
