16 September 2004
Economist Intelligence Unit - ViewsWire
EIU ViewsWire
(C) 2004 The Economist Intelligence Unit Ltd.
COUNTRY BRIEFING
FROM THE ECONOMIST INTELLIGENCE UNIT
The government has appointed Linklaters of the UK and the local offices of
Abdulaziz H. Fahad to act as legal advisers for the planned expansion of the
Saudi railway system. Some 34 firms expressed an interest in the contract, with
Linklaters selected from a shortlist of seven. The contract for legal advisory
services comes shortly after the award of the financial and technical advisory
contract to a consortium of the local National Commercial Bank, Union Bank of
Switzerland, and SNCFI of France.
These consultants have been hired to advise on the possible privatisation of
existing rail services as well as a massive planned expansion of the rail system
within Saudi Arabia. A new 950-km loop is to be laid between Riyadh and the Red
Sea port city of Jeddah, and this new line will be linked with the existing
railway between Damman and Riyadh. In addition, a 115-km link is to be
constructed between Dammam and Jubail. The network linking Jeddah, Riyadh,
Dammam and Jubail has been dubbed the Saudi Land Bridge. Another 570 km of track
called the Western Railway is also planned, which will establish links between
Mecca, Medina and Jeddah, and then onward to Yanbu. The government would like to
see these new rail routes built on a build-operate-transfer basis, bringing
private investors into the sector.
As planning for development of the intercity system advances, attention is
focusing on other potential uses of rail transport. In August, the Saudi
government announced that it had appointed Semaly of France and Lebanon's Dar
al-Handasah to prepare studies on the social, economic and environmental impact
of a new electric rail link in Riyadh. The consultants are also charged with
providing a technical assessment of a suitable route for the new system through
the city. The contract is valued at US$2.1m, with the reports to be completed
within 14 months.
SOURCE: Business Middle East
EIU Viewswire 16 Sep 2004, Part 21 of 48
|
