RIYADH, 12 July — Russian and French companies are reportedly trying to win the contracts for the proposed railway project linking the Arabian Gulf with the Red Sea.
Some Russian companies specializing in energy and roads and railways have begun talks with Saudi agencies to get a major share of the massive project, according to a top Russian diplomatic source.
Minister of Communications Dr. Nasir Al-Salloum stated earlier this month that the railway project linking Riyadh with northwestern Saudi Arabia will be executed jointly by the Saudi Arabian Mining Company (Maadin) and construction giant Saudi Oger.
Speaking to Arab News after chairing a meeting of the Saudi Railway Organization’s board of directors here, Al-Salloum said the government would bear 50 percent of the project’s cost. But he did not say when the project would take off.
Another aspirant for the contracts is the French SISTRA company which has submitted to the Ministry of Communications details of the projects it is keen to undertake including railway expansion projects which are expected to be announced in a few months.
Representatives of the company have been visiting the Kingdom since mid-June to discuss various aspects of the projects with the officials of both the Saudi Arabian General Investment Authority and Ministry of Communications. The French company has also appointed a Riyadh-based contracting company as its local representative. The company hopes to get 50 percent project financing from some leading European financial institutions.
The government plans to give the railway expansion and construction projects worth approximately $2 billion to the private sector on the build, operate and transfer (BOT) basis.
The projects cover construction of more than 3,000- km- long lines linking east to west and north to south. This includes a 948-km line connecting Riyadh with the Jeddah Islamic Port. When this line is laid passengers can travel and cargo can be shipped from Dammam to Jeddah and back on rail as already there is a 449-km line connecting Dammam with the capital city.
The new line will pass through Taif and Makkah. Another 610-km line will connect Riyadh with the northern area of Galamidin at the north west of the Kingdom passing through Buraidah, Hail and Jawf. This line will extend up to Al-Qurayyat at the northern border. Another proposed line is a 425-km link between the holy cities of Makkah and Madinah.
The Kingdom’s present 1392-km-long railway line includes the Riyadh -Dammam line passing through Abqaiq and Hofuf.
