Hyundai Rotem (064350) is accelerating its push into the Egyptian market with its hydrogen electric tram, which runs without external power supply lines. The company has established a cooperation framework to secure supply rights for a hydrogen electric tram system to be introduced in Egypt’s New Administrative Capital. If the deal is completed, it would become the first overseas export of a hydrogen tram.
The company announced on the 8th that it signed a memorandum of understanding (MOU) with Egypt’s National Authority for Tunnels (NAT) on cooperation for building a hydrogen electric tram system in the New Administrative Capital, at the Korea-Egypt Business Roundtable held at the Grand Lotte Hotel in Seoul on the 7th. The signing ceremony was attended by Kamel Al-Wazir, Egypt’s Minister of Transport; Lee Yong-bae, President and CEO of Hyundai Rotem; Kim Jung-kwan, South Korea’s Minister of Trade, Industry and Energy; and Kim Wan-joong, South Korean Ambassador to Egypt.
The subject of this agreement is the New Administrative Capital that Egypt is developing approximately 35 kilometers east of Cairo. The hydrogen electric tram is being considered as a key public transportation mode for this large-scale smart city, which is planned to accommodate more than 6 million people upon completion. The scale under discussion between the two sides is 44 tram sets on a route of approximately 28 kilometers. A preliminary feasibility study is currently underway, and whether vehicles will be supplied has not yet been confirmed.
The scope of business Hyundai Rotem envisions goes beyond simple vehicle delivery. The company aims to provide a comprehensive solution encompassing vehicle and system supply, as well as support for actual commercial operations and operation and maintenance services. It also plans to accelerate overseas expansion by leveraging the integrated hydrogen value chain solutions provided by “HTWO,” Hyundai Motor Group’s hydrogen brand and business platform.
The hydrogen electric tram operates by generating electricity from a hydrogen fuel cell mounted on the vehicle. Since there is no need to install overhead catenary wires to supply power along the track, it has the advantage of reducing infrastructure that detracts from urban landscapes. The company explained that the tram emits only water during operation without direct carbon emissions, and it also has the effect of filtering fine dust from the air it draws in to generate electricity.
At the event, Minister Al-Wazir said, “Hyundai Rotem’s hydrogen electric tram is a next-generation transportation mode that meets the demand of Egypt’s New Administrative Capital, which seeks to introduce eco-friendly transportation infrastructure.” He added, “The fact that it has already entered the commercialization stage in South Korea and proven its reliability was also an important catalyst for cooperation.”
Domestic Commercialization Performance Is Key to Exports
Observers note that whether the supply of hydrogen electric trams to Egypt is confirmed will depend on the performance of commercialization projects underway in South Korea. Hyundai Rotem is currently pursuing hydrogen electric tram construction in two cities.
In Ulsan, a project is underway on a 10.85-kilometer section from Taehwagang Station to Sinbok Intersection, targeting opening in 2029. In Daejeon, a project is being promoted to introduce 34 tram sets on a 38.8-kilometer route, which would be the world’s longest catenary-free line. If these projects open smoothly between 2029 and 2030, they are expected to serve as decisive evidence boosting Hyundai Rotem’s credibility in overseas markets including Egypt.
Minister Al-Wazir’s mention of the tram’s entry into the commercialization stage in South Korea as a key catalyst for cooperation is in the same context. As the Egyptian government is closely watching South Korea’s domestic demonstration and commercialization performance, the pace of progress on the Daejeon and Ulsan projects could become a variable in signing an export contract.
Opportunity to Gain First-Mover Advantage in the Global Rail Market
Hyundai Rotem aims to connect this Egyptian project to the first export of its hydrogen electric tram. If supply is confirmed, the company plans to use it as a bridgehead to identify additional business opportunities in overseas rail markets. Since hydrogen trams are still in the early stages of commercialization in the global market, securing orders preemptively could lead to capturing related demand ahead of competitors.
The company also expects the vehicle export to enable joint overseas expansion by South Korea’s hydrogen and rail industries. Since hydrogen production and refueling infrastructure is essential for tram operations, overseas business opportunities could open up for related equipment companies as well. Partner companies involved in vehicle manufacturing are also expected to benefit from expanded export volumes.
However, since vehicle supply has not yet been confirmed, this MOU is interpreted as the first step in pursuing the project. The results of the preliminary feasibility study, the Egyptian government’s budget allocation, and the progress of domestic commercialization projects must all align for an actual contract to materialize. Hyundai Rotem plans to continue discussions on the introduction plan based on this agreement.
