Business
Saudi Arabia: Investors sought for new rail network
Riyadh, 3 Nov. (AKI) - Saudi Arabia is seeking foreign investment for a series of projects to modernise and expand the country's ageing rail infrastructure, Italy's financial daily Il Sole 24 reported on Tuesday. Saudi Arabia's first major rail project in 50 years, The Landbridge project, will soon invite tenders for 1,600 kilometres of new rail lines.
The project aims to transform Saudi Arabia's existing rail network into a world-class freight and passenger rail link across the country.
The railway will connect the port cities of Jeddah, Dammam and Jubail and will pass through the capital city Riyadh and serve its dry port.
"It will have the capability to move large quantities of cargo over long distances at competitive rates and will offer safe and comfortable overland passenger transport," according to the project's website.
The project will create a 950 km new line between the Saudi capital, Riyadh, and the western port city of Jeddah near the holy city of Mecca.
It will also construct a 115 km new line between the eastern cities of Dammam and Jubail, and upgrade the existing rail link between Riyadh and Dammam.
Though its Public Investment Fund, the government has allocated 7 billion dollars to tempt international investors.
The PIF will enable the Saudi government to finance projects which lack a private investor.
A previous government initiative to grant 50-year Build Operate Transfer (BOT) contracts to firms had attracted little interest from foreign investors. This was put on hold during the global recession.
Under a BOT contract the company winning the government tender is responsible for the construction and operation of the rail link over the agreed period before transferring it to the government as a fully operational facility.
The project aims to transform Saudi Arabia's existing rail network into a world-class freight and passenger rail link across the country.
The railway will connect the port cities of Jeddah, Dammam and Jubail and will pass through the capital city Riyadh and serve its dry port.
"It will have the capability to move large quantities of cargo over long distances at competitive rates and will offer safe and comfortable overland passenger transport," according to the project's website.
The project will create a 950 km new line between the Saudi capital, Riyadh, and the western port city of Jeddah near the holy city of Mecca.
It will also construct a 115 km new line between the eastern cities of Dammam and Jubail, and upgrade the existing rail link between Riyadh and Dammam.
Though its Public Investment Fund, the government has allocated 7 billion dollars to tempt international investors.
The PIF will enable the Saudi government to finance projects which lack a private investor.
A previous government initiative to grant 50-year Build Operate Transfer (BOT) contracts to firms had attracted little interest from foreign investors. This was put on hold during the global recession.
Under a BOT contract the company winning the government tender is responsible for the construction and operation of the rail link over the agreed period before transferring it to the government as a fully operational facility.
Bookmark whit:
