LONDON -- The investors' conference organized by Saudi Railway Organization (SRO) here was a big success as it drew representatives of more than 150 Saudi and foreign companies interested in taking part in the SR10 billion railway expansion project.
Transport Minister Dr. Jabara Al-Seraisry, who presided over the event, expressed his satisfaction over the big turnout of international companies and hoped consortia of companies would be formed soon to carry out the project.
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.
It also involves integration of the new lines with Jeddah Islamic Port, King Abdul Aziz Port in Dammam and Riyadh Dry Port. The project is expected to boost Saudi industries and change the existing shipping patterns in the region.
Khaled Al-Yahya, president of SRO, said the business conference held at UBS headquarters yesterday was aimed at providing information related to the project to potential investors and clear their doubts.
"The response to our invitation was excellent and much beyond our expectations as more than 150 delegates attended the conference representing major companies within the Kingdom and abroad," he said.
The exact cost of the project was not disclosed at the conference but Al-Seraisry said in a previous statement that it would cost around SR6.6 billion.
Al-Yahya said SRO was intending to construct only a single line in the first phase. "Two-way tracks will be built later when traffic grows," he added. Last year, Saudi railway transported 1.3 million passengers and a billion ton of goods.
The new railway line 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 speed trains with a speed of 220 km per hour, and the other to operate ordinary trains with sleeper coaches," Al-Yahya said.
He said cargo trains would be able to cross the distance between Jeddah and Dammam within 24 hours. "The new railway project will promote transportation in the whole Gulf region," he added. He described the project as one of the largest BOT schemes ever undertaken in the region.
A consortium comprising UBS Investment Bank, the National Commercial Bank and SNCF International has been selected by SRO to provide financial advisory services for the project.
Pre-qualification of consortia for the project is expected to commence in the first half of 2005. Detailed prequalification documentation containing the technical and commercial characteristics of the project, will be published within two months.
The new Riyadh-Jeddah railway line is significant. Proposed conjunction for this line is from a point about 30 km from Riyadh on the old line (in order to avoid built up areas). It will then head toward the Riyadh-Jeddah expressway and run, for a greater part, parallel to it until Al-Muwayh Al-Jadeed. From this point onward it will pass north of Makkah and Taif.
This line, in conjunction with the existing Riyadh-Dammam line, will be primarily used for the transport of container traffic to and from Jeddah port to Dammam port in the Arabian Gulf for further shipment to and from the UAE, Iran, Kuwait, etc. and for inland destinations. The line will also be used to transport passengers.
The new Dammam-Jubail track will link the railway network to the city of Jubail and Jubail Port. The rail connection to Jubail Industrial City will provide a reliable and economic means of transport for the industrial produce of the city to other parts of the country.
-- Additional input from P.K. Abdul Ghafour
By Nizar Aboud
© Arab News 2005
