Saudi Arabian Railways (SAR) has tendered a contract to construct a railway line in Dammam Second Industrial City.

MEED understands that the project covers the construction of a new freight yard and freight line connecting Dammam’s Second Industrial City with the existing 556 kilometre-long Dammam-Riyadh railway, officially known as the East Train Network.

The three-year project is understood to have an estimated value of about SR720m ($192m).

The tender notice was issued in April, with a submission deadline of 29 May.

In 2023, MEED reported that SAR was planning two projects to increase its freight capacity, including an estimated SR4.2bn ($1.1bn) project to install a second track along the North Train Freight Line and construct three new freight yards.

Formerly known as the North-South Railway, the North Train is a 1,550km-long freight line running from the phosphate and bauxite mines in the far north of the kingdom to the Al-Baithah junction. There, it diverges into a line southward to Riyadh and a second line running east to downstream fertiliser production and alumina refining facilities at Ras Al-Khair on the Gulf coast.

Adding a second track and the freight yards will considerably increase cargo-carrying capacity on the network and enable and facilitate the development of increased industrial production. Project implementation is expected to take four years.

State-owned SAR is also considering increasing the localisation of railway-focused materials and equipment, including constructing a cement sleeper manufacturing facility.

SAR is also making progress with its Saudi Landbridge project. Earlier this month, the client had issued a tender for the lead design consultancy services contract on its long-planned Saudi Landbridge railway network.

The estimated $7bn project comprises more than 1,500km of new track. The core component is a 900km new railway between Riyadh and Jeddah, which will provide direct freight access to the capital from King Abdullah Port on the Red Sea.