JEDDAH: The Saudi Railway Organization (SRO) has decided to invite revised bids to compete for the contract to construct a railway project linking the Red Sea port city of Jeddah with Dammam on the Arabian Gulf, according to Al-Riyadh newspaper yesterday.
“The last date for receiving new quotations for the project to be constructed on build, operate and transfer system is 31st of this month,” a knowledgeable source said. The total cost of the project is estimated at SR30 billion though it was estimated initially at SR19 billion, Hassan Al-Salami, a contractor with close links to SRO said.
To speed up the completion and operation of the railway project the government licensed the establishment of Saudi Land Bridge Company in July. The consortium that wins the project will have an 80 percent stake in the company, with the government holding 20 percent, Abdul Aziz Al-Hoqail, president of the SRO, said on an earlier occasion.
The project involves the construction of 950 km of new railway tracks between Riyadh and Jeddah, and another 115 km line between Dammam and Jubail. It is the cornerstone of a massive multibillion-riyal railway expansion project and will be the first rail link between the Red Sea and the Gulf.