World Economy

China Wins $600m Egypt Rail Contract

China Wins $600m Egypt  Rail ContractChina Wins $600m Egypt  Rail Contract

China Railway Construction Corporation (CRCC), the second largest state-owned construction enterprise, said one of its subsidiaries, has been awarded $600m contract to upgrade the Egyptian national railway, Reuters reported. The CRCC has been the builder of more than half of China’s rail links since 1949. The rehabilitation and renewal project contract awarded to CRCC unit China Civil Engineering Construction Corporation by Egyptian National Railways is a major boost to the Chinese firm’s regional portfolio. The deal value represents approximately 0.63% of the company’s operating revenue for 2014 under the PRC accounting standards. Hany Dahy, minister of transportation, recently announced that Egypt’s ageing railway urgently needs billions to develop 700 outdated carriages and 21 tractor units. The decrepit railway continues to deteriorate causing an increase in fatalities with each passing year.