P.K. Abdul Ghafour, Arab News

JEDDAH, 2 March 2005 - German Chancellor Gerhard Schroeder has shown special interest in Saudi Arabia's SR10 billion railway expansion project and said he would be happy to visit the Kingdom again to help German companies win a major share in the landmark project.

"I will be happy to visit the Kingdom again if there is agreement on major projects like the railway expansion, which certainly deserves another visit to get a good share for German companies in this huge project," Al-Riyadh Arabic daily quoted the chancellor as saying. Schroeder made this comment while addressing the Saudi-German Economic Conference at the Riyadh Chamber of Commerce and Industry.

The German chancellor left the Kingdom on Monday after a two-day visit, during which he held talks with Custodian of the Two Holy Mosques King Fahd, Crown Prince Abdullah and top Saudi officials on major international issues and ways of strengthening bilateral cooperation. The railway expansion project involves construction of 950-km new tracks between Riyadh and Jeddah and another 115-km line between Dammam and Jubail as well as upgrading of the existing rail link between Riyadh and Dammam.

It also involves integration of the new lines with Jeddah Islamic Port, King Abdul Aziz Port in Dammam and Riyadh Dry Port. The project, which is expected to be completed in three years, will boost Saudi industries and change the existing shipping patterns in the region.

Many foreign companies have already shown their interest in the project. An investors' conference organized by Saudi Railway Organization (SRO) in London in the end of January to introduce the project drew representatives of more than 150 Saudi and foreign companies. Transport Minister Dr. Jabara Al-Seraisry, who presided over the London conference, expressed his satisfaction over the big turnout of international firms and hoped consortia of companies would be formed soon to carry out the project.

"The response to our invitation was excellent and much beyond our expectations as more than 150 delegates attended the conference representing major companies within the Kingdom and abroad," said Khaled Al-Yahya, president of SRO.

Al-Yahya said SRO was intending to construct only a single line in the first phase. "Two-way tracks will be built later when traffic grows," he added. Last year, Saudi railway transported 1.3 million passengers and a billion ton of goods.

The new railway line will reduce travel time between Riyadh and Jeddah by at least five hours depending on the type of trains used. "There are two options: One, to operate speed trains averaging 220 km per hour, and the other to operate regular trains with sleeper coaches," Al-Yahya said.

He said cargo trains would be able to cross the distance between Jeddah and Dammam within 24 hours. "The new railway project will promote transportation in the whole Gulf region," he added. He described the project as one of the largest BOT schemes ever undertaken in the region. Pre-qualification of consortia for the project is expected to commence in the first half of 2005. Detailed prequalification documentation containing the technical and commercial characteristics of the project, will be published within two months.

The railway expansion project will transform the existing rail network into a world-class freight and passenger rail link across the country. It will have the capability of moving large quantities of cargo over long distances at competitive rates and will offer safe, comfortable and fast overland passenger transport between the country's four major economic centers.