{"id":454555,"date":"2026-06-15T19:02:22","date_gmt":"2026-06-15T09:02:22","guid":{"rendered":"https:\/\/www.railfreight.com\/?p=71736"},"modified":"2026-06-15T19:02:22","modified_gmt":"2026-06-15T09:02:22","slug":"saudi-arabia-awards-contract-award-to-expand-rail-freight-network","status":"publish","type":"post","link":"https:\/\/www.vibewire.com.au\/?p=454555","title":{"rendered":"Saudi Arabia awards contract award to expand rail freight network"},"content":{"rendered":"

Saudi Arabia Railways (SAR) has awarded a contract to extend its freight railway network in the Kingdom\u2019s Eastern Province. The tender was assigned to OHL Arabia and Hassan Allam Construction Saudi, but its value and completion timeline have not been disclosed.<\/strong>
\n<\/span>The project is part of the efforts to expand the oil-rich state\u2019s rail infrastructure and strengthen freight transportation capabilities to support industrial growth and logistics efficiency in line with Saudi Vision 2030. Under the contract, OHL Arabia (a subsidiary of Spanish OHLA), and Hassan Allam Construction Saudi, a subsidiary of Hassan Allam Holding, will jointly undertake the complete civil and railway construction works for the new rail connection serving Dammam Second Industrial City.<\/p>\n

22.7-kilometre single-track<\/h2>\n

Work will include the construction of a 22.7-kilometre single-track line, incorporating extensive earthworks, civil foundations, track infrastructure, and associated railway systems. The construction of two bridges -one 265-meters-long. crossing a major highway and the other, 118 meters in length, spanning the ARAMCO Pipeline Corridor, also falls within the project\u2019s remit. In addition, the JV. joint venture will install\u00a0 signalling and telecoms systems, together with all associated interface works to facilitate the integration of the new railway connection into the Kingdom\u2019s wider rail network.<\/p>\n

Improving access to key industrial hub<\/h2>\n

The Dammam 2nd Industrial City Railway Connection Project is expected to significantly enhance freight mobility across the Eastern Province by improving rail access to one of the Kingdom\u2019s key industrial hubs. It will support increased movement of industrial goods, reduce transportation costs, and strengthen connectivity between manufacturing centres, ports, and logistics facilities.<\/p>\n

\u2018Landbridge\u2019 project<\/h2>\n

The war in Iran and near-closure of the Strait of Hormuz has accelerated efforts to lessen dependence on the strategic waterway for ocean freight. This has seen SAR increase its container traffic with freight trains leaving the port of Dammam and travelling north to ports in Jubail and Al Jubail en route to Jordan and beyond. In April, Philip Delmas<\/a>, founder and head of Drewry Supply Chain Advisors, said now was the time for the Gulf Cooperation Council (GCC) of nations to push ahead with a long-mooted and much-delayed project to build a rail freight corridor crossing the region.<\/p>\n

The proposed \u2018Saudi Landbridge\u2019 or the East-West Container Corridor Railway would see trains running on approximately 1,500 kilometres of track, connecting Jeddah, on the Red Sea, to Dammam and Jubail on the Gulf coast, reducing freight transit times significantly and enhancing the efficiency of trade routes in the region. The line is projected to transport over 50 million tonnes of freight per year. The project also makes provision of close to 20 logistics hubs along the corridor, with rail-linked industrial parks.<\/p>\n