Saudi Arabian Railways Launches Tender for Railway Project in Dammam

News Summary

Saudi Arabian Railways has announced a tender for a $192 million railway project in Dammam’s Second Industrial City. This initiative aims to enhance freight transportation infrastructure by constructing a new freight yard and connecting it to the existing Dammam-Riyadh railway. The project plans to conclude in three years, following tender submissions by May 29. This step underscores SAR’s commitment to improving freight capacity and supporting industrial production in the region.

Saudi Arabian Railways Launches Tender for $192 Million Railway Project in Dammam

Saudi Arabian Railways (SAR) has officially announced a tender for a significant railway project in Dammam’s Second Industrial City, with an estimated value of SR720 million (approximately $192 million). This initiative aims to enhance the freight network by constructing a new freight yard and a freight line that will connect Dammam’s Second Industrial City to the existing Dammam-Riyadh railway.

Tender Details and Project Timeline

The tender notice was published in April, with a submission deadline set for May 29. SAR has laid out plans to complete this project over a period of three years. This step aligns with SAR’s ongoing efforts to boost its freight capacity and improve transportation infrastructure in the region.

Expanding Freight Capacity

In 2023, SAR announced two key projects focused on increasing freight capabilities, one being a major SR4.2 billion (around $1.1 billion) initiative to add a second track along the North Train Freight Line and establish three new freight yards. The North Train Freight Line itself spans 1,550 km, linking phosphate and bauxite mines in northern Saudi Arabia to the Al-Baithah junction. This expansion is anticipated to significantly enhance cargo-carrying capacity and support the growth of industrial production.

Additional Initiatives in Rail Construction

Alongside the new freight line project, SAR is exploring the option of increasing local production of railway materials and equipment. This development may include plans for a cement sleeper manufacturing facility, which would further bolster the domestic construction industry.

Another critical project underway is the Saudi Landbridge, for which a tender for the lead design consultancy was also released earlier this month. Valued at around $7 billion, this extensive project comprises over 1,500 km of new railway track. One of the primary goals of the Saudi Landbridge project is to establish a 900 km railway connecting Riyadh and Jeddah, allowing for direct freight access to Riyadh from King Abdullah Port, situated on the Red Sea.

Public-Private Partnerships Under Vision 2030

In addition to the railway initiatives, the National Centre for Privatisation and Public-Private Partnerships (PPP) in Saudi Arabia has announced major projects in Makkah and Dammam as part of the Vision 2030 agenda. The Makkah proposition aims to develop a mixed-use healthcare and commercial zone on a government site spanning 219,416 sqm, with submissions for Request for Qualifications (RFQs) due by July 27, 2025.

In Dammam, the King Fahd Suburb Boulevard project encompasses a 1,000,000 sqm mixed-use initiative, with Expressions of Interest (EOI) submissions due by July 16, 2025. This project aims to transform government land into a vibrant mixed-use destination featuring parks, retail, hospitality, and office spaces. Both projects will adopt revenue-sharing agreements under the PPP model, with full asset handover anticipated at the conclusion of a 30-year concession period.

Ongoing Developments in Dammam

Progress is also being made on the Aramco Stadium in Dammam, slated for completion by 2026. This stadium is expected to serve as a venue for the AFC Asian Cup and has the potential to host events for the 2034 FIFA World Cup. It will feature six buildings and extend over 800,000 sq meters, accommodating up to 47,000 fans. A joint venture between a Saudi contractor and a Belgian firm is overseeing the construction, with designs inspired by natural whirlpools.

In efforts to enhance the country’s sporting facilities, the Saudi Arabian Sports Ministry has committed nearly $3 billion for new sports developments and upgrades over the next five years. This funding reflects a growing emphasis on improving infrastructure across all sectors in Saudi Arabia.

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Additional Resources

• MEED: SAR Tenders for Dammam Industrial City Railway Connection
• Google Search: Dammam industrial construction market
• Arab News: Corporate and Sponsored Content
• Zawya: EOI for Logistics Zone PPP Project in Dammam
• Football Ground Guide: New Saudi Stadium Bids in Dammam