News Summary
Saudi Arabian Railways has announced a tender for a $192 million railway project in Dammam’s Second Industrial City. This initiative aims to enhance freight transportation infrastructure by constructing a new freight yard and connecting it to the existing Dammam-Riyadh railway. The project plans to conclude in three years, following tender submissions by May 29. This step underscores SAR’s commitment to improving freight capacity and supporting industrial production in the region.
New Railway Project in Dammam’s Second Industrial City Tendered
Saudi Arabian Railways (SAR) has kick-started a significant development by announcing a tender for a new railway project in the Dammam Second Industrial City. This project, which holds an estimated value of around SR720 million (approximately $192 million), is set to enhance the existing railway infrastructure aimed at growing freight capacity in the region.
The project involves the construction of a new freight yard and a freight line designed to connect Dammam’s growing industrial area with the established Dammam-Riyadh railway. The tender notice was released in April, with interested parties required to submit their proposals by 29 May 2023. SAR has outlined plans for the completion of this project within a three-year timeline.
Objective of the New Railway Project
This initiative to develop a dedicated freight line and yard is part of a broader strategy by SAR to increase freight capacity across Saudi Arabia. Earlier this year, SAR launched two additional projects, including a substantial SR4.2 billion (around $1.1 billion) investment aimed at expanding the North Train Freight Line. This enhancement will see the addition of a second track and the construction of three new freight yards, directly impacting how freight is transported across the country.
With a total length of 1,550 kilometers, the North Train Freight Line currently links critical phosphate and bauxite mines in northern Saudi Arabia to the Al-Baithah junction. The completion of the upcoming projects is expected to bolster cargo-carrying capacity significantly and support increased industrial production across the region.
Future Enhancements and Production Plans
Moreover, SAR is actively considering initiatives aimed at boosting local production of railway materials and equipment. One such potential project includes the construction of a cement sleeper manufacturing facility, which aligns with the goal of fostering domestic capabilities in railway infrastructure.
In addition to the Dammam project, SAR is advancing its plans for the Saudi Landbridge project, which entails an extensive investment of around $7 billion. This project will create over 1,500 kilometers of new railway track, with its centerpiece being a 900-kilometer railway that will establish a direct link between Riyadh and Jeddah. This railway will facilitate seamless freight access to the capital from the strategic King Abdullah Port on the Red Sea.
Complementary Public-Private Partnership Projects
Alongside these developments, Saudi Arabia’s National Centre for Privatisation & PPP has announced significant public-private partnership projects set to transform various regions. Among these initiatives is a mixed-use healthcare and commercial zone in Makkah that spans 219,416 square meters, with submissions for requests for qualifications (RFQs) due by 27 July 2025. Another project involves the Dammam King Fahd Suburb Boulevard, which will cover 1,000,000 square meters and is scheduled to have expression of interest (EOI) submissions by 16 July 2025.
Both projects will incorporate a revenue-sharing model under a concession framework lasting 30 years, allowing for the full turnover of assets to the public sector at the end of the term.
Sports Infrastructure Developments
In the sports sector, progress continues on the Aramco Stadium in Dammam, anticipated to be completed by 2026 for the AFC Asian Cup. The stadium is also positioned as a potential venue for the 2034 FIFA World Cup. Designed by the firm Populus, the stadium features six buildings and occupies 800,000 square meters, with a capacity of 47,000 fans. Furthermore, a joint venture between Saudi-based Al-Bawani and the Belgian contractor BESIX is responsible for its construction.
The Saudi Arabian Sports Ministry has allocated nearly $3 billion for the development of new sports facilities and upgrades over the next five years, signaling a robust commitment to enhancing the sports infrastructure in the Kingdom.
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Additional Resources
- MEED: SAR Tenders for Dammam Industrial City Railway Connection
- Google Search: Dammam industrial construction market
- Arab News: Corporate and Sponsored Content
- Zawya: EOI for Logistics Zone PPP Project in Dammam
- Football Ground Guide: New Saudi Stadium Bids in Dammam
