The planned multibillion-dollar rail project to connect east Cairo and the new administrative region, called New Capital City, to Egypt’s key industrial cities has started with the acquisition of electric trains worth $1.5bn from China’s Avic International.

The first electric trains are expected to operate the route between the 10^th of Ramadan City and Al-Salam City by the end of August.

Local press quoted Egypt’s Transport Minister Hany Dahy who called the project a major leap in Egypt’s transport history and said it will help to address chronic traffic congestion issues in Cairo.

In addition to this project, Egypt is undertaking a multi-phased metro project within Cairo.

The Transport Ministry said a line to connect 6th of October City, an industrial city located in Giza Governorate, with Cairo’s Al-Malek al-Saleh district will be initiated by end of 2015.

The new line will feature 17 stations, with Japan providing half of the required funds, according to reports in the local press.

In April this year Avic committed to building a $500m factory in Abu Zaabal in Qalyubia, located along the Delta Nile region in lower Egypt.

The factory is slated to manufacture train and metro carriages.

Egypt’s government has indicated a strong interest in building more train factories both to meet local demand and demand for export.