On 31st January 2005 Saudi Railways Organisation ("SRO") held a Project Day in London to introduce the Saudi Landbridge project to the international community of investors and contractors. There was an overwhelming response to the event and a large number of companies representing different disciplines sent their representatives to attend the Project Day.
The Landbridge is the cornerstone of the Railway Expansion Program approved by the Kingdom's Supreme Economic Council. The project is to be implemented through private sector participation as a BOT concession. It will be the first ever rail link between the Red Sea and the Gulf and is expected to have a profound impact on shipping patterns in the region. A considerable saving in shipping time for goods originating in Europe and North America and destined to Gulf markets should be possible with the Landbridge.
The Saudi Landbridge will transform the existing rail network in the Kingdom 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 centres. The railway will connect the port cities of Jeddah, Dammam and Jubail via Riyadh (population 5 million).
The project will comprise:
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Construction and operation of a 950 km new line between Riyadh and Jeddah. This line, in conjunction with the existing Riyadh-Dammam line, will be used for the transport of container and cargo traffic between Jeddah, Riyadh and Dammam meant for the domestic market and for further shipment to and from the Gulf countries. |
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Construction and operation of a 115 km new line between Dammam and Jubail, the largest industrial city in Saudi Arabia hosting many world-class petrochemical industries. |
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Upgrade and operation of the existing rail link between Riyadh and Dammam to provide for increased traffic volumes generated by the Landbridge. |
A
consortium comprising UBS Investment Bank, The
National Commercial Bank and SNCF International
has been retained by the SRO to provide financial
and technical advisory services for the project.
Linklaters, together with the Law office of
Abdulaziz H Fahad, is providing legal advisory
services. SRO is now inviting applications for
pre-qualification from interested parties to
take parts in the later stages of the Landbridge
tender process. A copy of the Request for Pre-Qualification
(“RFPQ”) containing guidelines for
submission of applications for pre-qualification
can be downloaded from the project website at
www.saudirailexpansion.com
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