Solved by verified expert:Read the project and answer these questions, then write maximum 2000 word. 1) Focus on what is happening, 2) what is doing well, 3) what are the criticisms, and if you are in the project manager, what would you do differently.
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Railways – Saudi Arabia
Sector Report
Rail
Saudi Arabia
Produced by:
Abdul Muqtadar
Trade & Investment Officer
British Consulate General – Jeddah Last revised: 05 May 2010
Whereas every effort has been made to ensure that the information given in this document is accurate,
neither UK Trade & Investment nor its parent Departments (the Department for Business, innovation
and Skills and the Foreign & Commonwealth Office), accept liability for any errors, omissions or
misleading statements, and no warranty is given or responsibility accepted as to the standing of any
individual, firm, company or other organisations mentioned.
Published by UK Trade & Investment
www.uktradeinvest.gov.uk
Railways – Saudi Arabia
Table of Contents
OVERVIEW
3
CHARACTERISTICS OF MARKET
4
KEY METHODS OF DOING BUSINESS
13
PUBLICATIONS
14
EVENTS
15
CONTACT LISTS
15
APPENDIX
16
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Railways – Saudi Arabia
OVERVIEW
The idea of building railways in Saudi Arabia started in mid fifties of last century
when a need for a commercial seaport in the gulf coast emerged. The current
railway was inaugurated in 1951. Saudi Railways Organisation (SRO), the national
entity for railways was established according to a royal decree in 22/2/1386 (12
Jun 1966). Currently, there is a single railway that links Dammam in the Eastern
Province with Riyadh, the capital.
Saudi Arabia’s ambition of a better and bigger railway is starting to come into life
with the new huge railway projects in the Western and Eastern regions of the
Kingdom. The construction of the railway project connecting Jeddah, Makkah, and
Madinah kicked off in June 2009. It is estimated that the first phase of the project
would be ready by April 2012 and the second phase by December 2012 which will
mark the experimental operation. This will boost the quality of transportation
system in three cities. The Government will grant concessions to the private sector
for the construction and operation of the new railway network via a Build Operate
Transfer contract.
Many programmes are also taking place now a days to improve SRO performance in
all areas, particularly operation & maintenance. The Supreme Economic Council has
recommended privatising SRO along with other organisations. Privatisation process
will be part of implementing the land bridge and Makkah-Madinah Rail Link (MMRL)
projects.
Saudi Railway Organisation (SRO), the operators of existing railway between
Riyadh and Dammam will be converted into Saudi Arabian Railway (SAR), a
Government entity to manage, own and regulate the entire railway in Saudi Arabia.
For more details about the organisation and press releases, visit:
www.saudirailways.org.
And for more information about expansion projects, visit:
www.saudirailexpansion.com
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Railways – Saudi Arabia
CHARACTERISTICS OF MARKET
Saudi Arabia’s experience in the railway industry is relatively new and could be
described as modest compared with the UK. There is only one small railway in the
country. Railway manufacturing is not well established in Saudi Arabia. Saudi
Railways Organisation (SRO) operates and maintains the current network and
welcomes foreign expertise. They have imported rail engines, carriages, rail track,
sleepers, etc from USA, Switzerland, France, Korea, etc.
With increasing economical and social needs for an efficient and a cheap means of
transportation, SRO plans an ambitious construction regime that will add several
routes to the single line that exists today. Many projects undertaken by SRO and
other entities are underway at different stages.
To maintain its reputation as a provider of good and reliable service, SRO is keen to
improve standards of their operation. Thus, there is ongoing requirement for
material/equipment suppliers and service providers in the sector.
The Landbridge Project:
Renamed as (Jeddah Riyadh Dammam & Jubail Rail Link Project)
The $ 5 billion project is considered to be one of the most significant construction
projects ever undertaken in the Kingdom. It will provide the first rail link between
the Red Sea and the Arabian Gulf. This is a 950km railway, which will link Jeddah
in the west with the existing railway at Riyadh. Another 115km railway will be
extended from Dammam to King Fahad Industrial Port in Jubail, joining the Red Sea
port of Jeddah to the coast of Arabian Gulf in Dammam.
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Railways – Saudi Arabia
This project is planned to transform the existing railway network in Saudi Arabia
into a world-class freight and passenger rail link across the country. It will be
capable of moving large quantities of cargo over long distances at competitive rates
and will offer safe and comfortable overland passenger transport. The railway will
connect the sea port cities of Jeddah, Dammam and Jubail and will pass through
the capital city Riyadh to serve its dry port. This project will involve construction of
approximately 950 km ((590 miles) of new line between Riyadh and Jeddah and
construction of approximately 120 km (75 miles) of new line between Dammam
and Jubail. The project will serve three regions; Riyadh, Eastern, and Makkah,
home to approximately 70% of the population.
In a recent development, the Council of Ministers licensed a joint stock company
(Saudi Land Bridge Company) to establish and operate this rail project. The Cabinet
meeting, chaired by Crown Prince Sultan, said the new company would be a closed
joint stock company and would establish, develop, operate and maintain the railway
linking the Kingdom’s east with its west coast, transporting passengers, goods and
carry out other related activities.
Following four consortia comprising Saudi and foreign companies pre-qualified to
implement this project on a BOT basis. The Tarabot Consortium, led by Arabian
Company for Power & Water Development (Acwa-Power), the Trace Consortium
featuring Saudi Binladin Group, The Mada Consortium, and the Agility Consortium,
led by Kuwait’s Agility Logistics. The bids were submitted but the project was not
awarded on the date specified.
It has been recently announced that Landbridge rail project will be retendered but will not be implemented on a BOT basis. It will now be
funded by Public Investment Fund (PIF) as North South Rail Project.
Revised study of the project is presently in progress by Dar Al Handsa and
Khateeb Al Alami companies. No date to invite tenders is announced yet.
Haramain High Speed Rail Project (Makkah-Madinah Rail Link)
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Railways – Saudi Arabia
The Makkah Madinah Rail Link (MMRL), a $ 5.3 billion dollar project, aims to
provide a safe, fast, and comfortable mode of transport for an estimated 10 million
Hajj and Umrah pilgrims travelling between the two holy cities and Jeddah. The
railway route map has been designed to pass through the vast plains in the
Western Province parallel with the highways connecting the three cities to avoid
any natural obstacles set by mountains, hill, or valleys. The project will be
implemented on a design, build, operate and transfer (DBOT) basis. It includes the
construction of approximately 500km of new high-speed electrified railway lines
between Jeddah and Makkah and between Jeddah and Madinah.
The railway network will have three major passenger stations in the three cities. In
addition, a station at a little town in the Rabigh area called Sa’abir will be set up to
serve King Abdullah University of Science and Technology (KAUST) in Thuwal, 70
Km north of Jeddah, and surrounding areas which are expected to boom once the
university is up and running. High-speed electric trains will move passengers at 300
kph every one-hour between Makkah and Madinah, and every half an hour between
Jeddah and Makkah. A typical capacity is 15 trains per hour and 800 passengers
per train (as for the Eurostar sets), which implies a capacity of 12,000 passengers
per hour in each direction. Train trips, however, will be increased during Hajj and
Umrah seasons.
Railway lines will also be equipped with modern signalling and telecommunications
systems. SRO has planned the project after observing the growing number of
people who travel between the three cities. Nearly 2.5 million pilgrims visit the two
holy cities during the Hajj season. In addition, 8.5 million people, including two
million in Ramadan (Holy month) alone, come for Umrah annually.
It would be possible to utilise the line for the whole year. Calculating on the basis
of cost of one pilgrim’s transport expenditure to be SR 200 between the Holy sites
and a probable use of the train by one million pilgrims in one year, the revenue
comes to SR 200 million. Also, calculating on the basis of usage of the train by
about 3 million Umrah pilgrims during Ramadan and the whole year, at a cost of SR
50 per person, the revenue comes to SR 150 million in one year and SR 3 billion in
20 years.
50% percent of the two holy city visitors are expected to use this 500km and
300kmph train. The line will also link Yanbu Industrial complex, King Abdul Aziz
International Airport in Jeddah and the planned King Abdullah Economic City in
Rabigh, where a Hajj terminal city capable of accommodating over 500.000 pilgrims
every season will be built.
Six consortia – the Al-Rajhi Consortium, the Saudi Binladin Group, Saudi Oger, the
Saudi Japanese Consortium, the Al-Sholah Consortium and the OHL internationalsubmitted bids for the first phase (ground preparation, backfill, bridges etc) and AlRajhi Consortium was awarded the contract for SR. 6.79 billion in February 2009.
The project is in progress to complete within the specified period.
Tenders for design of stations, constructing rail tracks and installing electricity,
communication and signalling systems as well as for the import and operation of
bullet trains will be accepted by the end of June 2010.
Saudi Binladin Group and Spain’s Obrascon Huarte Lain (OHL) will submit a joint
bid. They will face competition from the Al-Shoula consortium, led by the Canada-
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Railways – Saudi Arabia
based Vision Transportation Group; the Saudi Japanese group, led by the local
Mada Group; and the Saudi Oger consortium.
A UK joint venture of Foster & Partners and Buro Happold is working on package
two of the project, designing four of the five stations on the route, at King Abdullah
Economic City and Jeddah Central station, as well as at Makkah and Madinah
themselves. The railway will also connect to Jeddah International airport.
To speed up the construction of Haramain railway project, King Abdullah has
instructed the state owned Public Investment Fund (PIF) to sign and finance service
and business contracts for the project by providing interest-free loans from its
revenues. PIF will be compensated for the service through budget allocations in the
coming years.
It is estimated that the first phase of the project would be ready by April 2012 and
the second phase by December 2012 which will mark the experimental operation.
The expected journey time on the proposed 300 km per hour bullet trains would be
half an hour between Makkah and Jeddah, and two hours between Madinah and
Jeddah. The 450 km HR project will be fully electric and equipped with the most
advanced signalling and communications systems.
In January 2010, Scott Wilson Group-UK, the international design and engineering
consultancy company has been appointed to provide project management support
for the Haramain High Speed Rail Project. The contract awarded by Saudi Railways
Organisation (SRO) is worth Saudi Riyal 89.8 million (£14.5m) over five years and
covers technical, specialist engineering and programme management services.
North – South Rail Project: (NSRP)
The Public Investment Fund (PIF), a division of the Ministry of Finance, and Saudi
Arabian Mining Company (Ma’aden), the government owned mining company, has
awarded three of the four main construction packages on the multi-billion-dollar
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Railways – Saudi Arabia
north-south railway, one of the most ambitious rail schemes of recent decades.
The 2400km project is designed mainly to serve the mining industry in Saudi Arabia
and will be implemented in four different sections:
The first contract (CTW-100) covers a 550km section from the planned fertiliser
and aluminium complex at Ras al-Zour on the Gulf coast to the bauxite mine of AlZabirah in the north. The railroad will transport the phosphates for processing and
then export from the port of Ras al-Zour on the East Coast. Saudi Binladen Group
(SBG) is constructing the rail project. It will also links up to Al-Zabirah, where
Ma’aden is working with Canadian aluminium producer Alcan to mine and process
the aluminium ore bauxite.
Project is in progress and about 65% of the work has been completed.
The second contract (CTW-200) involves the construction of 457 kilometres from
Al-Zabirah to the mid-point of the central Al-Nafud region. It is being constructed
by China Railway 18th Bureau Company and Al-Suwaiket Group.
Project is in progress and about 60% of the work has been completed.
The third contract (CTW-300) calls for the construction of a 782km section from AlNafud to the Al-Jalamid phosphate mine and Qurayyat, near the Jordanian and Iraqi
borders, in addition to the Al-Basayta spur. Al-Rashid and Barcley Mowlem Co, are
constructing it.
Project is in progress and about 60% of the work has been completed.
The fourth and final package (CTW-400) entails 480km between Al-Zabirah junction
and Riyadh’s King Khalid International Airport, which was awarded to Russian
Railways and later cancelled. This section was re-tendered and has been awarded
to China Rail Construction Corporation (CRCC).
Expressions of interest notes for the following three packages have been issued:
1) Signalling & Telecommunication.
2) Operation and Maintenance.
3) Procurement of Rolling Stock.
Interested companies, joint ventures and consortia were given one month to submit
their expression of interest.
Please click on this link for details:
http://www.nsrway.com.sa/home.php
Al Mashaaer Al Mugddassah Metro in Makkah (Makkah Light Rail Project):
A feasibility study conducted by an international company proposed five monorails
linking the holy sites in Makkah to transport more than 3 million pilgrims between
the holy sites. The Makkah monorail will be 8 to 10 meters above the ground to
ensure smooth flow of pedestrians and vehicles. The total cost of the project will be
Saudi Riyal 20 billion (US $ 5.4 billion).
King Abdullah approved to conduct Makkah Light Rail study, to be carried out by
the Development Projects Department with a number of experts from within the
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Railways – Saudi Arabia
Kingdom and abroad. The study was completed and submitted in September 2008.
The Makkah network will link up two holy sites in the city and is expected to involve
an elevated system similar to the one under construction in Dubai. It has been
estimated that this investment would be for about 20 years.
The use of fast trains to travel in the south, of the Holy sites of Arafat, Muzdalefa
and Muna would reduce the number of buses being used for this purpose by 25,000
from a huge fleet of 70,000 buses now being used by internal Hajj pilgrims and the
pilgrims coming for Hajj over land routes. The trains travelling in the south of the
Holy sites would carry a minimum of 500,000 pilgrims within 6 to 8 hours and
reduce the traffic congestion dramatically.
Nine international companies were invited to bid for this US $5.4 billion project.
Five companies were short listed and the project wining company (CRCC) was
announced in September 2008. The project is to be started by January 2009 to
ensure its completion in 18 months.
In the presence of King Abdullah and the Chinese president Hu Jintao, the Minister
of Municipalities and Rural Affairs (MMRA) Prince Miteb Bin Abdul Aziz signed the
Makkah monorail project agreement with (CRCC) China Railway Construction
Corporation. The value of the project reached SR 6.65 Billion with a capacity to
transport 90,000 passengers per hour. The project will be implemented in two
years. Thirty-five per cent of the project’s capacity would be used during the next
Hajj and the full capacity two years later.
Thales is to supply Seltrac Communications-Based Train Control, an operations
control centre, CCTV, SCADA and passenger information systems for the Al
Mashaaer Al Mugaddassah Metro in Makkah under a contract announced in June
2009. The €130m contract was awarded by China Railway Construction Corp, which
is responsible for infrastructure construction and systems integration under a 6·7bn
Saudi Riyal contract signed in February 2008.
Further contracts have also been awarded recently for this project:
Westinghouse Platform Screen Doors will supply the PSDs, Siemens will provide the
power supply, and Lloyds Register has been appointed as safety assessor. Systra
will supervise the civil work whilst WS Atkins is responsible for electrical and
mechanical systems and project management.
The 18·2 km elevated metro will transport pilgrims to holy sites in Arafat, Muzdalifa
and Muna during the Hajj, reducing congestion caused by buses and cars. The line
will also carry Umrah pilgrims throughout the year. Each site will have three
stations.
On April 4 CNR Changchun Railway Vehicles was awarded a contract to supply 17
Type A 12-car metro train sets. Each set will have eight motor and four trailer cars,
all with aluminium bodies. The first set will be delivered in April 2010 and the last
by the end of 2010.
The metro will open in time for the November 2010 Hajj, operating at 35% capacity
initially with automatic train protection to assist manual driving. A member of staff
will be retained onboard once driver-less operation is introduced in mid-2011, when
the metro will reach its full capacity of 72 000 passengers/direction/h in time for
the 2011 Hajj.
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Railways – Saudi Arabia
The line may be extended later to Al Haram-Makkah and is the first of a proposed
five-line network which would connect the area to Jeddah airport and the planned
national rail network.
Riyadh Light Railway:
This is a proposed $2 billion Riyadh light railway (LR) project. The project will
include two lines; the first one will run for about 38 kilometres linking the north and
south of the city, while the second runs along King Abdullah Street and extend 13
kilometres from the east to the west of the capital. The first stage is envisaged to
be completed by 2013.
In December 2009, construction started on the long awaited light-rail project,
where 36 stations will be built in the first phase. This project is aimed at reducing
congestion in a city where 87 percent of the population uses private cars as the
primary mode of transport. This Riyadh Light Railway (RLR) project for the capital
city, as it is called, comes under the jurisdiction of Arriyadh Development Authority
(ADA). SRO would receive eight train cars within 36 months from now from the
Spanish company CAF. The total cost of these eight train units is about SR612
million. CAF signed a contract with the SRO for the supply of the trains and a fouryear maintenance project. The construction works have started on the two railway
routes of the city. 23 stations will be built on the first route, while 13 stations will
be constructed on the second rail link. The frequency of the services will be higher
during peak hours. The electric metro system in Riyadh is part of the ADA’s efforts
to make the public transport system more effective and popular. The first phase
will involve the construction of a 25-km north-south route. It will extend from the
northern side of the ring road to Olaya and Batha streets up to the southern ring
road. The …
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