Kapsch CarrierCom and the Algerian railways operator SNTF (Société Nationale des Transports Ferroviaires) signed a contract on the joint venture Rail-Telecom that will see the two construct a telcom network in Algeria. The Austrian railways expert and SNTF are taking steps to make Algerian railway system fit for the future. The agreement foresees a knowledge transfer initiative, the supervision and maintenance of the Algerian railways telecommunication networks, including the nationwide GSM-R (Global System for Mobile Communications – Railway) and SDH (Synchronous Digital Hierarchy) fiberglass backbone, and promising infrastructure projects to be realized within the upcoming years.
The main goals of the partnership are to construct a telcom network in Algeria by growing and establishing railway telecommunications know-how in Algeria; to educate, train and supervise local experts, and finally to build, supply and maintain the Algerian railway network with state-of-the-art telecommunication technology. For this reason the company Rail-Telecom is now under joint ownership of SNTF (51%) and Kapsch CarrierCom (49%) as shareholding partners. Furthermore, this joint venture will become a center of excellence in Algeria, in order to offer their services and expertise in the region.
“The Maghreb region and many parts of the Middle East have developed into an important target market for us in recent years, and will offer enormous potential for our sector in the future too. The knowledge generated from the joint venture between Kapsch and SNTF will support Algeria’s railway infrastructure project,” stated Kari Kapsch, CEO of Kapsch CarrierCom.
This joint venture follows a memorandum of understanding signed between Kapsch and SNTF in July 2013 to increase cooperation in the sector of secured telecommunication for railways. Kapsch has been the strategic supplier of Algerian railways for the GSM-R network and transmission backbone for more than 9 years. During that time the company has already deployed more than 3,000 km of rail track in Algeria within multiple projects, including lines such as El Gourzi Touggourt, Saida Moulay Slissen or Rocade Nord.
Future investment
To build and maintain a complete state-of-the-art railway network is a cornerstone of economic growth in Algeria, and the national railway network extends to approximately 4,500 km. Thanks to the large infrastructure initiative of the Algerian government, enhanced construction and modernization is now ongoing. The railway network will be expanded within the following years; plans are up to 12,000-14,000 km until 2025. Within the scope of Algeria’s infrastructure project, approximately USD 26,7 billion will be spent for the expansion and modernization of the railway network.
Intense economic cooperation
Austria and Algeria have a long history of economic partnerships in many industries and specifically when it comes to the railways industry, with an active cooperative agreement on rail signed in September 1987. Between the two countries a double tax is applied, as well as an investment protection agreement. Algeria is the largest country in Africa, the fifth largest exporter of natural gas worldwide, and the fourth largest producer of oil in Africa. With a gross domestic product of about USD 230 billion in 2014, the country is the third largest economy in Africa. For the Austrian economy, Algeria is the second largest trading partner on the continent (after South Africa) and the most important in North Africa. Austrian companies with investments in Algeria can be found in the engineering and planning areas, as well as in the construction sectors.
Kapsch CarrierCom is a leading, global systems integrator, manufacturer and supplier of end-to-end telecommunications solutions. The company offers innovative, business and mission-critical solutions for rail and urban public transport operators, carrier networks and energy supply companies. Kapsch CarrierCom is a trusted partner to organisations, who benefit from a comprehensive array of professional services and round-the-clock customer service. With nine research and development centres in Europe and Asia, Kapsch CarrierCom is constantly pushing the boundaries of technology. In addition, the company works with an ecosystem of strategic partners to maximise value for clients and help them increase their business success. Kapsch CarrierCom is part of the Kapsch Group and is headquartered in Vienna, Austria.