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Kingdom of Saudi Arabia
Railway Expansion
Ramiz Al-Assar, Sr. Transport Engineer
World Bank, Washington, DC
Transport Forum
March 10, 2005
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Topics
The Country
The Transport Sector
The Role of the World Bank- Resident Mission
The Railway Expansion– The North-South Railway Project (NSR)– The East West Railway Project (Land Bridge)
The Role of the Private sector
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The Country- Saudi ArabiaRiyadh is the Capital City (13-Administrative Regions).
GDP: 211 Billion US$ (2003)
Area: 2.25 m Sq. m.
Population: 24 m (2.9% annual Growth):– 75% Saudis– 40% below 14-years of age– 65% in 3-main areas (Riyadh, Makkah, Eastern Province)
Labor force: 7.4 m:– 6.5 million in Private Sector – 50% Saudis– 30% in transport, construction, and industry sectors.
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The Country-Saudi Arabia
Kingdom of Saudi Arabia
Yemen
Oman
United Arab EmiratesQatar
Bahrain
IranIraq
Jordan
Egypt
Sudan
EthiopiaSomalia
Djbouti
Eritrea
SyriaLebanon
Red Sea
Gulf
Gulf of Aden
Arabian Sea
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The Transport Sector
4.5% of Public Expenditures (67 billion US$-2003) spent on Transport/Infrastructure
Roads: 150,000 Km (50,000 km paved).
Railways: 1000 km (550 km for freight; 450 km for passengers).
Ports: 8- commercial/industrial (handling 105 m tons/year.
Airports: 25 of which 3 International (handling 30 m passengers/year).
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The Role of the World Bank Resident Mission
1975 Memorandum of Understanding on Technical Cooperation.Well Established office in Riyadh.Provides TA in Infrastructure, Education, ICT, PSD, Environment, Policy Reform, etc.Close coordination/cooperation with the WB HQ.Government appreciation of WB continued support.Ongoing discussion to move to a Programmatic TA.
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The Railway Expansion Program
East-West Railway(Saudi Landbridge)Western RailwayNorth-South RailwayExisting network
Railway Expansion Program will add 3,200 km of track to the existing network …
… connecting all major cities in the Kingdom
Haradh
Hofuf
Dammam
Hazm Al-Jalamid
Hail
Buraideh
Jeddah
Madinah
Makkah
RiyadhYanbu
JubailZabirahRas Azur
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North-South Railway Project (NSR)Royal Decree (in 2003) mandating the development of the NSR Project.
Part of a Railway Expansion Program.
Connects:– Mines at Al-Jalamid (Phosphate) & Zabirah (Bauxite)
to facilities in Ras Azur.
– Passenger & general freight line from Qurayyat through urban centers to Riyadh.
2,200 km in Length and cost about 2.8 billion US$.
1435 mm gauge single line with passenger speed of 160 km/h.
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North-South Railway Project (NSR)
Public Investment Fund (Ministry of Finance) is the implementing authority.
Detailed Engineering Design to be completed March 2006.
Award of Implementation Supervisions Consultancy expected 4th Q 2005.
Tendering for Construction expected 1st Q 2006.
Completion of Construction expected 3rd Q 2009.
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East-West Railway Project (Landbridge)
♦ 57 locomotives♦ 75 passenger coaches♦ 2,200 freight wagons♦ 300 million passenger-km/year♦ 1.0 billion ton-km of cargo/year
Saudi Arabia is comparable to Western Europe in size and is among the 25 largest economies in the world …
yet, rail network is relatively modest…
RiyadhHaradh
Hofuf
Dammam
2nd Track : 449 km built in the 1980s and used by passenger trains
1st Track : 556 km built in the 1950s and now used only for freight service.
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♦ 950 km of new line between Riyadh and Jeddah
♦ 115 km of new line between Dammam and Jubail
The Saudi Landbridge will connect Jeddah to Dammam and Dammam to Jubail…
… linking the Red Sea to the Gulf
East-West Railway Project (Landbridge)
Jeddah
Riyadh
Haradh
HofufDammam
Jubail
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East-West Railway Project (Landbridge)
Supreme Economic Council approved private sector participation in the implementation of the project on a (BOT) basis.
Inter-ministerial Steering Committee to supervise implementation, chaired by the president of SRO.
Saudi Railways Organization (SRO) as Executing Agency for the project
Traffic Type:– Primarily a container/freight line.
– Domestic container traffic makes up the bulk of SL traffic.
– Container transshipment to other Gulf countries
– Passenger service will also be provided between Jeddah and Dammam
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City and port
connections
JeddahMajor transshipment hub on the Red Sea
DammamAllows further shipment to Iran, Iraq, Kuwait, Qatar, and Bahrain
RiyadhLargest city and consumption centre in the Arabian peninsula (population over 5 million)
JubailSaudi Arabia’s main industrial city
East-West Railway Project (Landbridge)
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Landbridge Dynamics – Before
Jeddah
Riyadh
Dammam
UAE
To Far East
Kuwait
To Far East
To Europe & N. America
Sudan
Ethiopia
Oman
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Landbridge Dynamics – After
Jeddah
Riyadh
Dammam
UAE
To Far East
Kuwait
To Far East
To Europe & N. America
TrucksTrains
Sudan
Oman
Ethiopia
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Landbridge Dynamics – After…cont.
Jeddah
Riyadh
Dammam
To Far East
Kuwait
To Far East
To Europe & N. America
Trains
Ethiopia
UAEOman
Containers in both directions
Serving the Gulf
Dammam: Saudi Arabia’s Gateway to the Far East
Less traffic around the peninsula
Sudan
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Completed Technical and Financial analysis.
Structuring the project to attract private investment on a BOT basis.
Suggesting regulatory framework & concession structure to allow private sector participation.
Preparing tender documents.
Managing the award process of the BOT Concession.
East-West Railway Project (Landbridge)
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East-West Railway Project (Landbridge)
Initiate investor pre-qualification process (1st Quarter 2005)Issue tender documents to pre-qualified consortia (3rd Quarter 2005)Receive and evaluate bids (1st Quarter 2006)Negotiate with preferred bidder(s) (2nd Quarter 2006)Award concession(3rd Quarter 2006)
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Role of the Public-Private Sector
NSR Project– Public Sector to finance construction cost, rolling
stock and provide the land.
– Private Sector to construct and operate & maintain railway.
Landbridge Project– Public Sector to provide the land and in kind
contributions.
– Public Sector to set policy and establish regulations and Regulatory Authority.
– Private Sector Build-Operate-Transfer (BOT).