JEDDAH, 23 May 2006 — The Council of Ministers yesterday approved the licensing of a new firm named Saudi Arabian Railways (SAR) with a capital of SR1 billion and gave the company’s general assembly the authority to float either full or part of its shares for public subscription, the Saudi Press Agency said.
The company will carry out the north-south railway project, which is expected to boost the Kingdom’s mineral industries.
“The company will establish, operate and manage the north-south railway project as well as its related services and facilities either directly or through firms with require efficiency,” the Cabinet said in a statement after a meeting chaired by Custodian of the Two Holy Mosques King Abdullah.
The new joint stock company is also licensed to implement, operate and manage other railway projects, transport minerals, raw materials, fuels, goods and passengers, SPA said, quoting the Cabinet statement.
The licensing of the SAR comes after Finance Minister Ibrahim Al-Assaf signed a SR512 million contract with a consortium of multinational companies led by the Louis Berger Group of the United States in November 2005 to do the complete design and construction of the 2,400-km railway line linking Al-Jalamid and Al-Zubairah (Hail) in the north to the industrial city of Jubail.
The north-south line, which will connect Riyadh to Al-Jalamid to access the mineral deposits, will facilitate transportation of valuable minerals to industries and ports. Efforts are under way to establish a large mineral industrial complex in Jubail at a cost of SR22 billion.
Speaking about other Cabinet decisions, Culture and Information Minister Iyad Madani said the meeting welcomed the formation of the new government in Baghdad, hoping that it would succeed in strengthening national unity, protecting the country’s sovereignty and independence and restoring stability.
The Cabinet was also happy with the outcome of the Saudi-US dialogue, which was held in Washington. It reiterated the Kingdom’s stand on the need for supporting the Palestinian Authority and warned against the dangerous consequences of the economic siege being imposed by Israel on the Palestinian people.
The Cabinet also authorized Foreign Minister Prince Saud Al-Faisal or his deputy to hold talks with Croatian officials to sign an agreement for cooperation. It endorsed a protocol signed with China on Jan. 23 for cooperation in oil, gas and minerals. The protocol allows the two countries to establish joint companies to carry out future projects in the sector.
It appointed Ahmed ibn Hammad Al-Hamoud and Abdul Aziz ibn Ibrahim Al-Fayez ambassadors at the Foreign Ministry, Hamad ibn Oqla Al-Oqla deputy governor of the General Organization for Technical Education and Vocational Training for education and training, and Hassan ibn Hamid Al-Bakri director general of the Haj Ministry’s office in Madinah.
