Saudi Arabia is considering building a new freight railway that should connect an emerging Red Sea port. It is part of a major 500-billion-dollar regional economic diversification and development project.
Part of the project is Oxagon, a “reimagined industrial city” according to the so-called Neom project. It will feature a 48-square-kilometre core development area, as well as a port on the Red Sea. It should connect to major population hubs across Asia, Europe, and Africa.
The envisioned railway should connect the port to Saudi Arabia’s north-south railway. It would be 400 kilometres in length. The Neom project has now issued an expression of interest, aiming to find consultants to make the railway a reality.
Enabling capacity expansion
With a rail connection, the Oxagon port could feature links to major Saudi population centres, such as capital city Riyadh. Moreover, the north-south railway already moves minerals to industrial hubs, and could also serve the new Red Sea port. Currently, the facility relies on road and maritime freight movements.
Oxagon port has a capacity of 250,000 TEU annually, but Saudi Arabia wants to increase that to 1.5 million TEU by 2030. A rail connection is an important asset to facilitate such freight flows.
Major investments have been completed at the site in recent years. This includes a $1 billion terminal and a Green Hydrogen project worth $8.5 billion. An AI data centre is now under construction.
Hafeet Rail
While Saudi Arabia is preparing to build a new railway, neighbouring Oman and UAE are gearing up for the first trials on their new line. These trials are expected to start in late 2027. The so-called Hafeet Railway connects Omani port city Sohar with the UAE’s rail network. It will serve both passenger and freight traffic.
Importantly, Hafeet Rail bypasses the Strait of Hormuz and could bring freight to the oceans without Iranian interference. It reportedly reached 40% completion in April.