Railway sector

An Expert's View about Transportation and Storage in Saudi Arabia

Posted on: 18 Jul 2012

Saudi Arabia is presently investing over US$ 45 billion to develop its world class rail networks.

Railway sector in Saudi Arabia Saudi Arabia is presently investing over US$ 45 billion to develop its world class rail networks. Its ambition of a better and bigger railway is starting to come into life, with its new railway projects covering a total length of 7,000 km. Market overview The allocated budget for rail development in KSA is believed to be $90bn over 30 years. This 30 year master plan will provide ‘an integrated and clear future vision’ for a ‘safer, better and bigger railway. The projects already announced and in progress are: ξ US $ 7.5bn - Jeddah-Riyadh, Dammam-Jubail Railway - (Landbridge) project. To be tendered this year. ξ US $ 12.3 bn - Haramain High Speed Rail Link - a 444 kilo meters high-speed track that will link the Muslim holy cities of Medinah and Makkah via King Abdullah Economic City, Rabigh, Jeddah and King Abdulaziz International Airport. Project in progress. ξ US$ 2.3 bn - Ras ALZour(Ras Al Khair)-Jubail-Dammam Rail Link Project. Awarded last month. ξ US $ 25 bn Gulf Cooperation Council (GCC) Rail Project: ξ Extending from Saudi Arabia to Kuwait, Qatar, Bahrain, UAE and Muscat. To be tendered this year. ξ US $ 20 bn - Urban Mass Rail Transit System - Makkah Metro, a project of 182 km with 88 stations, to link different areas of Holy Makkah with the Grand Mosque. ξ US $ 7-8bn Riyadh Metro: Arriyadh Development Authority (ADA) has issued invitation for contractors to prequalify for the main construction package on the planned $7-8bn Riyadh metro project before 20 June 2012. Key opportunities ξ Riyadh metro project invited global consortia, specialised in production and supply of rolling stocks, controls, telecommunications systems, as well as metro tunnelling, civil, mechanical and electrical works, to pre-qualify for the main construction package on the planned $7-8bn Riyadh metro project before 20 June 2012. ξ Saudi Railway Company (SAR) is inviting companies to submit bids by 26 May for the contract to carry out detailed engineering design for the kingdom’s planned $7.5 bn Landbridge rail project ξ Formulate group of UK companies, interested in Makkah Metro and visit Saudi to call on MMRTC Transportation Advisor for presentation and discussion. ξ UK rail operation & maintenance companies to focus Makkah Metro operation & maintenance contract to be tendered soon. ξ UK companies to follow the GCC rail consultancy project and to keep a track of its announcement. ξ UK training providers for rail repairs & maintenance, to establish training centres in the Kingdom to train Saudis. ξ UK Company’s involvement in Landbridge project and alert UK possible bidders. ξ US $ 20bn new Bahrain Causeway to be tendered soon to be built on BOT basis Latest export opportunities – Railways Latest export opportunities - Saudi Arabia Getting into the market Saudi Arabia’s experience in the railway industry is relatively new and could be described as modest compared with the UK. There is only one small railway (400 km) in the country. Railway manufacturing is not well established in Saudi Arabia. Saudi Railways Organisation (SRO) operates and maintains the current network and welcomes foreign expertise. They have imported rail engines, carriages, rail track, sleepers, etc from USA, Switzerland, France, Korea, etc. To maintain its reputation as a provider of good and reliable service, SRO is keen to improve standards of their operation. Thus, there is ongoing requirement for material/equipment suppliers and service providers in the sector. All materials and equipment used in Saudi Rail projects are to be approved by the Saudi Railway Organisation. Quality and technical standards are more important than price in bid decisions. Adherence to schedules and specifications and long-term commitment for after sales service are key to win projects. Business tends to be done through direct procurement rather than via agents. Technical and regulatory standards in Saudi Arabia are different to those of the EU, hence should be well studied and understood. UK companies are advised to familiarise themselves with sample specifications at the earliest opportunity. More about doing business in Saudi Arabia Contacts Market intelligence is critical when doing business overseas, and UKTI can provide bespoke market research and support during overseas visits though our chargeable Overseas Market Introduction Service (OMIS). To commission research or for general advice about the market, get in touch with our specialists in country - or contact your local international trade team. ξ David Harries, British Trade Office-Alkhobar. Tel: +44 3 882 5300 or email: David.Harries@fco.gov.uk ξ Abdul Muqtadar, British Consulate General-Jeddah Tel: +44 2 622 5550 or email: abdul.muqtadar@fco.gov.uk. Contact your local international trade team Major Events UK Mass Transport trade mission to Saudi Arabia 1-5 September 2012 ξ Contact Jason Castelino ξ jason.castelino@ukti.gsi.gov.uk UKTI Events UKTI runs a range of events for exporters, including seminars in the UK, trade missions to overseas markets and support for attendance at overseas trade shows. Latest events - Railways Latest events – Saudi Arabia Useful links More about OMIS and other UKTI services for exporters
Posted: 18 July 2012

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