Saudi Arabia awards contract to expand freight railway network

The state-owned Saudi Arabia Railways (SAR) has awarded a contract to expand its freight railway network in the Eastern Province.

The expansion will connect more than 1,000 global and local facilities in the Dammam industrial zone to ports and other logistics hubs across the country.

The contract for the 22.7km single-track Dammam 2nd Industrial City railway connection project was awarded to a joint venture between OHL Arabia, a subsidiary of Spain’s Ohla Group, and Hassan Allam Construction Saudi, a unit of Egypt’s Hassan Allam Holding.

The joint venture will deliver the full scope of civil and railway works, including the development of civil foundations, earthworks, and track infrastructure, Hassan Allam said in a statement.

The project also encompasses major structural components, including a 118-metre bridge over the Aramco Pipeline Corridor.

The contract value and completion timeline were not disclosed.

In April, SAR launched five new logistics routes to enhance supply chain efficiency. The move came as the Iran war has seen Tehran effectively block the Strait of Hormuz, roiling global energy markets and disrupting supply channels.

SAR said in March that it would expand logistics connectivity between ports and cargo terminals within the kingdom and neighbouring countries.

Hassan Allam is currently involved in several strategic transit systems, including Cairo Metro Line 4 and the Alexandria Raml Tram in Egypt, the monorail in Riyadh’s King Abdullah Financial District, and the Hafeet Rail connecting Oman and the UAE.

Further reading:

• Turkey plans to extend Hejaz railway to Oman
• Neom cancels rail link between Oxagon and The Line
• The Strait of Hormuz may never truly reopen