RIYADH, 8 August — The Council of Saudi Chambers of Commerce and Industry (CSCCI) is leading a fresh initiative with private sector support to implement a significant part of the SR10 billion railway expansion project, linking Makkah and Madinah with Jeddah Islamic Port.
The CSCCI, which sees funding as the main obstacle to the project, has proposed that an effective formula be evolved to collect the capital required for the project from local and foreign investors, by highlighting its feasibility and benefits.
According to a CSCCI report, a copy of which has been obtained by Arab News, the Saudi private sector has shown interest to implement part of the project linking Madinah with Jeddah Islamic Port. The proposed railway line will also pass through Yanbu and Makkah.
Studies have proved that the Madinah-Yanbu-Makkah-Jeddah railway line will be profitable. Madinah Governor Prince Muqrin has shown special interest in the project and taken steps to conduct another feasibility study on the project under his supervision.
A number of meetings with businessmen, chamber representatives and government officials have been held to discuss the project. The businessmen who have shown interest in the project have demanded that it should serve pilgrims visiting the holy cities of Makkah and Madinah. The proposed railway line could also be expanded to Jordan and Riyadh at a later stage.
The businessmen also insisted that the project should include support services to make investments more profitable and help establish a free-trade zone in Yanbu and a dry port in Madinah.
The meetings urged the CSCCI to form a constituent committee for the project. Members of the committee should pay SR100,000 each as part of their contributions to the company. The money will be used to cover expenses of feasibility studies when approval is granted by the higher authorities for the project.
The CSCCI has prepared a study on the private sector’s investment role in the railway expansion project for presentation to the Shoura Council. The study points out that railways are the best means for long and safe journey and are environment-friendly.
Japan’s Hitachi company has expressed its desire to participate in the railway expansion project. Informed sources at the Communications Ministry told Arab News that the company had contacted the Saudi government through its representatives in the Kingdom.
The government has approved the executive plan for the project which is estimated to cost SR10 billion ($2.6 billion). The project was scheduled to be completed in three phases. In the first phase, Riyadh will be linked with Jeddah. There will be another railway line linking the northern and central regions to transport minerals. The third phase will link Dammam with Jubail.
