Arab News - DUBAI, 9 December 2003 - Saudi Arabia has appointed a consortium consisting of UBS and the National Commercial Bank (NCB) to provide financial advisory services for the Saudi railway expansion project, Khalid AI-Yahya, president of Saudi Railways Organization (SRO), announced yesterday.

The announcement came at the Gulf Traffic and MENA (Middle East and North Africa) Rail 2003 Congress, which opened here yesterday with more than 250 delegates and dozens of industry leaders attending.

The railway project comprises a land bridge linking Jeddah to Dammam via Riyadh (to be called the Saudi Land Bridge) and a rail link between the holy cities of Makkah and Madinah via Jeddah.

The process for development of the projects will examine possible technical and commercial solutions as well as the structure of the concessions, which will be offered to the private sector on a BOT basis. The two projects will be offered as separate concessions.

Several studies related to the projects have been undertaken by the World Bank and numerous international technical firms.

Several international and national companies have expressed an interest in participating in the projects.

Due to the complexity of the projects, SRO expects that companies will form consortiums to bid for them. Abdulhadi Shayif, general manager of NCB, said: "Connecting the Red Sea to the Gulf will confirm Jeddah Islamic Port's position as a trade hub for the entire region. Furthermore, for Muslims worldwide, connecting the two holy cities of Makkah and Madinah via a rail link is an inspiring proposition."

Stephen Paine, managing director at UBS, commented that "UBS and NCB are extremely pleased to be working with the KSA on these landmark transactions." He added, "in view of studies already completed and the concrete steps taken by the KSA in relation to privatization, the prospects for the private sector undertaking the future development of railways in Saudi Arabia are very encouraging."

The three-day Gulf Traffic and MENA Rail 2003 Congress highlights the latest technology, from large flashing road signs to high-tech traffic management systems.

The MENA Rail conference, introduced this year, will be inaugurated today by Nasser Saeed, chairman of Dubai Municipality's light rail project.

But the combined event was opened yesterday by Matar Al-Tayer, director of roads, Dubai Municipality, on behalf of Dubai's deputy ruler Sheikh Hamdan ibn Rashid Al-Maktoum.

"We are all aware that we still have a lot to do, but we can benefit from the experience of others and we highly appreciate the positive benefits from holding this conference and exhibition," Sheikh Hamdan said in a message.

Parallel to the conference, Dubai chief of police Dhahi Khalfan inaugurated the Gulf Traffic exhibition at Dubai's International Exhibition Center.

It brings together more than 150 exhibitors from over 30 countries. First-time participants include organizations from Iran, Jordan, South Africa, Taiwan, Spain and Australia.

Almost two-thirds of the show is focused on intelligent transport systems developments, according to the project director for IIR Exhibitions, Davyd Farrell.