Egypt buys locomotives from GM for $123 million

CAIRO May 30 (Reuters) - Egypt signed a $123 million contract with General Motors (GM.N) on Wednesday for 40 train locomotives, to be assembled in Egypt as part of a government plan to revamp the country's dangerously outdated railway system.

The locomotives will be assembled in an Egyptian military factory, Minister of Transport Mohamed Loutfi Mansour told reporters at the signing ceremony.

Egypt has had a series of transport-related disasters in which hundreds of people have been killed on roads, railroads and at sea, sparking public anger at what critics said was government failure to enforce safety standards.

In August, the Egyptian government said it would spend $1.5 billion on a comprehensive overhaul of Egypt's rail network, days after two commuter trains collided in the Nile Delta town of Qalyoub, killing 58 and injuring scores.

A government probe blamed the crash on a series of human, technical and administrative failures, and said a lack of financial resources left railway authorities incapable of updating equipment.