Saudi Arabia will be adding 2,700 kilometres of tracks to its rail network in the coming years. A major expansion, and one that looks to grow the position of rail in the country’s economy: it should double the contribution of transport to GDP.
The future rail infrastructure will connect industrial zones, cities, ports, airports, and inland logistics hubs, the Saudi transport minister said at a transport summit. The Saudis are making serious investments in rail: around half of all logistics investment is now going towards rail infrastructure.
Ultimately, new rail infrastructure could help enable growth in key economic sectors, according to Saudi authorities. They highlight mining, manufacturing, and energy as branches that stand to profit from more rail.
Part of the plan is to build a railway between coastal cities Jeddah and Dammam on opposite sides of the Arabia peninsula. The “Saudi Landbridge” would also link up to capital city Riyadh. Investment plans also include enhancements along the North-South railway, which is important for the mining sector.
Alstom and local industry
In late 2024, the Saudi transport minister explained that the country seeks to establish its own rail industry. By doing so, Saudi Arabia hopes to reduce its reliance on foreign enterprises. Despite that, it will still depend on French company Alstom for the foreseeable future. In a deal valued at 80 million dollars, the Saudis secured technical support, spare parts and staff training for five years. The deal focuses on the Jeddah – Dammam railway.