Saudi Railways signs agreement with SAGO for grains transport

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Saudi Arabia Railways (SAR) said it has signed an agreement with Saudi Grains Organization (SAGO) to transport grain from King Abdulaziz Port in Dammam to the organization’s branch office in Riyadh.

This five-year agreement, a strategic one for the food industry and logistic services sector, will see SAR transport grains from the Dammam port to SAGO's branch office through its railway line linking the Eastern Province with the Saudi capital.

It will result in less dependency on trucks on road and hence contribute to reduction of carbon emissions and thus preserving the roads' infrastructure and increasing the safety level for roads users.

The contract was signed by SAGO Governor Engineer Ahmed bin Abdul Aziz Al Faris and Saudi Arabia Railway CEO Dr Bashar Al Malik in the presence of Engineer Abdulrahman bin Abdulmohsen Al Fadley, Minister of Environment, Water and Agriculture and Engineer Saleh Bin Nasser Al Jasser, Minister of Transport and Logistic Services.

Al Faris said: "This agreement will help SAGO, which manages and operates silos, work more efficiently and diversify means of transportation, as 300,000 tonnes of grain are transported yearly."

Al Malik said it entrenches Saudi Arabia Railways' role and commitment to achieve the objectives of the National Transport and Logistics Strategy (NTLS) and the Kingdom’s Vision 2030.

"We transport food commodities following the highest international standards to ensure safety and quality," he noted.

"Our cooperation with SAGO will contribute to reducing carbon emissions in addition to reducing dependency on trucks on the road which leads to enhancing traffic safety on the roads between Riyadh Province and Eastern Province. The distance between the two provinces is 428 km by the railway," he added.