24 March 2003
Saudi Gazette
© 2003

DAMMAM-UK ambassador to the Kingdom Sir Derek Plumbly has offered the expertise of Britain in undertaking the expansion of the Saudi Railways Organizations (SRO), including the privatization of the country's railway systems. He made the offer during his visit Wednesday to Khalid Al-Yahya, president of SRO, at the company headquarters here in Dammam.

"My discussion with SRO officials was fruitful and the SRO president was keen on our proposal for joint venture in the long-term expansion of the Kingdom's railway systems," Sir Derek told reporters following the meeting. He said UK is also planning to invest in the SRO expansion plans.

Al-Yahya said the company is expecting to receive bids for the selection of financial consultants by March 1, 2003. Among the bidders were companies from United States, Europe, Japan and South Africa, in addition to several local banks.

More than 32 local and international companies have submitted bids for the financial consultancy for the SRO's 1,600-km railway expansion project. Part of the expansion plan is the establishment of a 950-km rail link between Riyadh and Jeddah, culminating at the Red Sea port and costing over $2 billion. The Riyadh-Jeddah loop will complete the Kingdom's east and west coasts through the existing 450-km rail link between Riyadh and Dammam. Another 570-km linkage is planned between Jeddah and the two holy cities of Makkah and Madina, which will farther stretch to Yanbu Industrial City. A third link of 115-km will connect Dammam with the industrial city of Jubail.

A fourth expansion of about 600-km is also planned between the phosphate mines in the north and Riyadh.

SRO officials said actual construction would start within two years. The selected financial consultants will formulate projects and then invite offers from local and international firms to construct the railways on a build-operate-transfer (BOT) basis.