SAR Awards $1.1bn Contract for Phosphate Rail Expansion

Saudi Arabian Railways (SAR) has awarded an estimated SR4bn-plus ($1.1bn) contract to Alomaier Trading & Contracting Company. This contract involves adding another track to the first section of the existing phosphate transport railway network in the kingdom’s Eastern Province. The project scope includes track doubling, alignment modifications, utility bridges, culvert widening, and hydrological structures, as well as converting the AZ1 siding into a mainline track. Additionally, it covers support for signalling and telecommunications systems. The existing railway line runs from the Waad Al-Shamal mines to Ras Al-Khair, and the new project will cover approximately 100 kilometres, connecting the AZ1/Nariyah Yard to Ras Al-Khair. Switzerland-based engineering firm ARX is serving as the project consultant. This project is the first of four packages for the phosphate railway line that SAR is expected to award soon. In 2023, MEED reported SAR's plans to increase its freight capacity with projects including a second track on the North Train freight line and the construction of three new freight yards. The North Train, formerly known as the North-South Railway, is a 1,550km-long freight line connecting the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction, from where it diverges to Riyadh and Ras Al-Khair. The addition of a second track and new freight yards is expected to significantly increase cargo capacity and support industrial growth. The project is anticipated to take four years to complete. SAR is also considering increasing the localisation of railway-focused materials and equipment, including the construction of a cement sleeper manufacturing facility.