Doing Business in Saudi Arabia - International Franchise Association
Doing Business in Saudi Arabia - International Franchise Association
Doing Business in Saudi Arabia - International Franchise Association
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Railroad Equipment – RRE<br />
Overview Return to top<br />
The Middle East is set to witness an unprecedented development of the railroad sector. There<br />
are a vast array of planned <strong>in</strong>tegrated railroad projects <strong>in</strong> the off<strong>in</strong>g with <strong>Saudi</strong> <strong>Arabia</strong> at the<br />
forefront, implement<strong>in</strong>g and hav<strong>in</strong>g undertaken a number of ambitious projects for the<br />
development of this sector. The <strong>Saudi</strong> Railways Organization (SRO), the authorized<br />
government body <strong>in</strong>itiat<strong>in</strong>g the expansion and development of these projects; plans on<br />
upgrad<strong>in</strong>g and significantly expand<strong>in</strong>g the K<strong>in</strong>gdoms railway network by implement<strong>in</strong>g separate<br />
but <strong>in</strong>terconnected new railway projects. Currently, projects to the tune of $30 billion are<br />
underway with further plans of expand<strong>in</strong>g the network <strong>in</strong> the near future. The best known<br />
companies from around the world have come forward and are compet<strong>in</strong>g head to head to offer<br />
world class and technically advanced products and services for the development of this excit<strong>in</strong>g<br />
sector <strong>in</strong> <strong>Saudi</strong> <strong>Arabia</strong>. A number of projects have already been awarded to specialized<br />
companies and consortiums that have bid through the tender process announced by the <strong>Saudi</strong><br />
Railways Organization.<br />
Railroad transportation, relatively new <strong>in</strong> the Middle East region will br<strong>in</strong>g about a radical<br />
change <strong>in</strong> the social, cultural and economic set-up prevalent <strong>in</strong> <strong>Saudi</strong> <strong>Arabia</strong>. Furthermore, it will<br />
enable SRO to expand and efficiently manage the millions of tons of cargo and conta<strong>in</strong>er traffic<br />
which constitutes 80% of SRO’s revenues. Railway transportation will enable the movement of<br />
large volumes and sizes of materials over vast distances cutt<strong>in</strong>g costs, provid<strong>in</strong>g a reliable and<br />
cost-effective alternative to transportation as opposed to traditional ways. Railway projects<br />
though demand high capital <strong>in</strong>vestments, are known to have relatively low operation costs.<br />
Moreover, the vast distances and large volumes of transported materials will prove to be a more<br />
cost-effective means of transportation. Moreover, the planned <strong>in</strong>dustrial and petrochemical<br />
projects will rely heavily on the development of this sector. With the huge geographical expanse<br />
of the K<strong>in</strong>gdom, the development of the railways projects will provide tremendous economic<br />
benefits to both the <strong>in</strong>dustrial base as well as for public use.<br />
The <strong>Saudi</strong> Railways Organization is vy<strong>in</strong>g to build about 3900 KM of railway tracks across the<br />
K<strong>in</strong>gdom. The ma<strong>in</strong> projects are the 2400KM North-South network that will connect the Riyadh-<br />
Buraydah-Hail-Qurayyat as well as the m<strong>in</strong>es at the Jalamid and Zabirah to Ras Al-Zour at the<br />
<strong>Arabia</strong>n Gulf and the 1100KM <strong>Saudi</strong> Landbridge Project or the East-West l<strong>in</strong>e which will l<strong>in</strong>k the<br />
Persian Gulf and Red sea coasts pass<strong>in</strong>g thru the Capital, Riyadh. The Harama<strong>in</strong> High Speed<br />
Rail also known as the Mecca-Med<strong>in</strong>a Railway L<strong>in</strong>k (MMRL), will be one of the most important<br />
elements <strong>in</strong> the expansion programs and will connect the holy cities of Mecca, Jeddah and<br />
Med<strong>in</strong>a, a distance of 450KM. This will ma<strong>in</strong>ly cater to the massive pilgrims and Umrah traffic,<br />
which is a year-round phenomenon, reach<strong>in</strong>g its peak dur<strong>in</strong>g the annual Hajj season.<br />
Best Products/Services Return to top<br />
Mentioned below are a number of expansion projects which are undertaken by the SRO:<br />
The North-South l<strong>in</strong>e: Start<strong>in</strong>g <strong>in</strong> the northwestern region of the K<strong>in</strong>gdom, this l<strong>in</strong>e passes<br />
through Al-Jouf, Hail and Al-Qassim regions and term<strong>in</strong>ates <strong>in</strong> Riyadh with extensions to Hazm<br />
Al-Jalamid to haul phosphate, and to Al-Zubayrah to haul bauxite, and to Ras Al-Zour on the