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 recently announced an exciting new venture, as it has issued a tender for the construction of a brand-new railway line in Dammam’s Second Industrial City. Valued at approximately SR720 million (around $192 million), this strategic project aims to bolster the region’s freight capacity.
Details of the Project
The project entails the establishment of a new freight yard and an intricate freight line that will connect the bustling Dammam’s Second Industrial City with the existing Dammam-Riyadh railway. The announcement was made with an official tender released in April, with interested parties required to submit their bids by the deadline of 29 May. SAR anticipates that the project will take about three years to fully implement, paving the way for enhanced logistics in the region.
Plans for Expanding Freight Capacity
This new undertaking marks a significant step for SAR, which has also unveiled two major projects in 2023 focused on increasing freight capacity. One of these developments is a larger SR4.2 billion ($1.1 billion) initiative designed to add a second track along the North Train Freight Line and construct three new freight yards. This line stretches over a remarkable 1,550 kilometers, linking phosphate and bauxite mines in northern Saudi Arabia to the Al-Baithah junction.
The expansion of the North Train is projected to significantly enhance the cargo-carrying capacity of SAR’s network, thereby supporting the industrial production growth that the Kingdom is actively pursuing.
Future Production Capabilities
In addition to modernizing its railway network, SAR is exploring opportunities to increase local production of railway materials and equipment. Plans are being considered for the establishment of a manufacturing facility specifically for cement sleepers. This move aligns with SAR’s broader goal of boosting local manufacturing capabilities and contributing to the economy.
Progress on Major Projects
Meanwhile, SAR is making strides with its extensive Saudi Landbridge project. Earlier this month, it issued a tender for the lead design consultancy for this ambitious project, valued at an estimated $7 billion. The Saudi Landbridge will see the introduction of over 1,500 kilometers of new railway tracks, with a centerpiece of 900 kilometers dedicated to connecting Riyadh and Jeddah. This connection is expected to provide direct freight access to the capital from King Abdullah Port on the Red Sea.
Public-Private Partnership Initiatives
In alignment with the Vision 2030 agenda, separate major Public-Private Partnership (PPP) projects have been announced by the Saudi Arabia National Centre for Privatisation & PPP in Makkah and Dammam. The Makkah initiative seeks to create a mixed-use healthcare and commercial zone on a 219,416-square meter government plot, with submissions for Requests for Quotations (RFQs) set to be due by 27 July 2025.
On the other hand, the Dammam King Fahd Suburb Boulevard project encompasses a vast 1,000,000 square meters and will transform government land into a thriving mixed-use destination featuring parks, retail, hospitality, and office spaces. EOI submissions for this opportunity are due by 16 July 2025, with aspirations for revenue-sharing agreements that will see full asset transfer to the public sector following a 30-year concession.
Upcoming Stadium for Major Events
Further development in Dammam includes the ongoing construction of the Aramco Stadium, which is expected to be completed by 2026 in time for the prestigious AFC Asian Cup, with potential use for the 2034 FIFA World Cup. The stadium will encompass six buildings, covering 800,000 square meters, and will accommodate up to 47,000 fans.
A joint venture between a Saudi contractor and a Belgian firm is leading the construction, with a design inspired by natural whirlpools. The Saudi Arabian Sports Ministry has pledged nearly $3 billion for the development of new sports facilities and upgrading existing ones over the next five years, indicating a robust investment in infrastructure to support not just transportation, but also sports and recreation across the nation.
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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
