JEDDAH: The much-awaited east-west railway (land bridge) project received a boost yesterday as the Council of Ministers licensed a joint stock company to establish and operate the estimated $5 billion project. “The Council of Ministers decided to license the establishment of Saudi Land Bridge Company as a closed joint stock company,” the Saudi Press Agency said, quoting Economy and Planning Minister and Acting Information Minister Khaled Al-Gosaibi.
The Cabinet meeting, chaired by Crown Prince Sultan, said the new company would “establish, develop, operate and maintain the railway linking the Kingdom’s east with its west... transport passengers and goods and carry out other related activities.”
Transport Minister Jabara Al-Seraisry said the land bridge project would be completed in four years and Abdul Aziz Al-Hoqail, president of the Saudi Railway Organization (SRO), said the winner of the contract would be announced this year. The consortium that wins the project will have an 80 percent stake in the company, while the government will hold 20 percent.
The project involves the construction of 950 km of new railway track 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. Four consortia — Agility PWC Logistics Consortium, Mada Consortium, Saudi Binladin Consortium and Al-Muhaidib/ACWA (Tarabot) Consortium — have presented their financial and technical offers for implementing the project.
The Cabinet meeting also decided to establish a center at the Institute of Public Administration to assess the performance of government departments and agencies. At a later stage it will be separated from the institute and brought directly under the prime minister.
The Cabinet passed the Fiduciary Information Law that will regulate collection, exchange and protection of such information on consumers. The Cabinet announced a 21 percent increase in nonoil exports in the first quarter of this year compared to the same period last year.
