22Apr2003 New Rail Line expected to boost trade in Saudi Arabia

Riyadh, 22 April, 2003

The proposed railway expansion project linking the Red Sea port of Jeddah with Dammam and Jubail ports on the Arabian Gulf is expected to boost trade. The new land bridge will facilitate the transport of about eight million tons of cargo annually. Khaled Al-Yahya, president of the Saudi Railway Organization, said the project would also be a step toward linking the Kingdom with other Arab countries. The east-west railway line, which will connect Jeddah Islamic Port with King Abdul Aziz Port in Dammam and King Fahd Port in Jubail, will have a total length of 1,061 kilometers. "This is a significant, economically feasible project; it will pave the way for linking the Kingdom with other Arab and Gulf countries in the north and south. It will also link the Western Province cities of Makkah, Madinah, Jeddah and Yanbu," he said.--

Al-Yahya noted that the northern railway line would link Riyadh with the mineral-rich Jelamaid region. The railway will pass by Qassim, Hail and Al-Jouf. "Railway extensions will also be constructed to the Zubaira region and Jubail," he said. This will bring the total length of the northeast line to 1,408 kilometers. The northeast line is significant for the transportation of minerals to the ports. It is estimated it will carry more than 12 million tons annually, especially raw minerals.

"When the project is completed”, he told Riyadh region's Governor Prince Salman during a recent presentation, “the Saudi railway will reach close to the Jordanian border. It could subsequently be connected with the Jordanian railway system and, from there, with other Arabian networks, and eventually with Turkey and Europe”.

The Supreme Economic Council, chaired by Crown Prince Abdullah bin Abdul-Aziz, has already approved the project, which will be carried out entirely by the private sector on a build-operate-transfer (BOT) basis. The Kingdom has short-listed eight foreign companies out of 32 firms for the financial consultancy for the railway project. The short list includes companies from Australia, Europe, Japan and the United States, some of which have a local partner.

"We have invited the selected firms to send their offers. The winner will be picked within the next few days," the president said. The financial consultant will formulate the projects and then invite offers from international and local firms to construct the railways. They will also submit complete studies for the privatization of the railways and integrate it into the company or consortium that will be awarded the project. Actual construction is slated to get under way within two years and will take another three years, according to Arab News.

Source: SPA

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