Saudi Investors Plan Company for Railway Project

Author: 
P.K. Abdul Ghafour, Arab News
Publication Date: 
Thu, 2005-05-05 03:00

JEDDAH, 5 May 2005 — Saudi investors in cooperation with major international firms will establish a joint stock company shortly to bid for the SR15 billion railway expansion project that links the Kingdom’s east and west coast regions.

Abdullah Al-Nafeesa, chairman of Al-Nafeesa Group, said the new company would be established with the support of international firms specialized in the provision of high speed trains and railroads.

“The company will contact with the Transport Ministry after finalizing the list of its founders,” Al-Riyadh Arabic daily quoted Al-Nafeesa as saying. He invited more Saudi investors to join the venture. The new move comes after the Saudi Railways Organization (SRO) invited leading North American, European and Japanese companies that operate high speed trains to present their proposals on the latest technologies.

The project involves construction of 950 km new tracks between Riyadh and Jeddah and another 115-km line between Dammam and Jubail as well as upgrading of the existing rail link between Riyadh and Dammam.

“Many international companies have expressed interest in the giant project by responding to SRO’s invitation,” said Khaled Alyahya, the organization’s president. SRO will study their offers in order to select the preferred technology.

The German Siemens company and an Italian company recently presented proposals to Transport Minister Dr. Jebara Al-Seraisry. SRO expects similar proposals from North American, Japanese and French companies to set out operational requirements and technical standards for the project. A well-known French firm, which has carried out railway projects in 250 cities worldwide, is taking part in the new joint stock company planned by Saudi investors.

Foreign companies have been given until mid-August to present their technical offers. “ Within a month or two after that, qualified consortia will be invited to present their tenders,” said Mohannad Al-Madhi, coordinator of the project. SRO will give four to six months to companies to present their tenders.

Madhi pointed out that many American, German and French companies have expressed their strong desire to take part in the project. “SRO is thinking of setting up a company to supervise implementation of the project. But the matter is still under discussion,” he added.

Alyahya denied press reports that French companies would be given priority in carrying out the project. “The two projects (including the land bridge and the Makkah-Madinah-Jeddah railway line) will be implemented after inviting tenders from international companies and the winners of contracts will be selected in accordance with international norms,” he added.

Certain international companies currently monopolize high-speed train technology. “We don’t want to set out certain specific standards in order to give an impression that the Kingdom gives priority to the technology of a particular company. We want to keep the field open for all companies and investors to propose technical and financial solutions to implement the project,” he added.

The proposed land bridge will reduce travel time between Riyadh and Jeddah by at least five hours depending on the type of trains used. “There are two options: One, to operate high speed trains averaging 220 km per hour, and the other to operate regular trains with sleeper coaches,” Alyahya said. He said cargo trains would be able to cover the distance between Jeddah and Dammam within 24 hours.

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