SAR tenders $1bn phosphate rail track doubling package
5 December 2025
Saudi Arabian Railways (SAR) has tendered a SR4bn-plus ($1bn) contract to add another track to its existing phosphate railway network, connecting the Waad Al-Shamal mines to Ras Al-Khair in the Eastern Province.
The project will span about 100 kilometres from the AZ1/Nariyah Yard to Ras Al-Khair.
The scope includes track doubling, alignment modifications, new utility bridges, culvert widening and hydrological structures, as well as the conversion of the AZ1 siding into a mainline track. The scope also covers support for signalling and telecommunication systems.
The tender notice was issued in late November, with a bid submission deadline of 20 January.
Switzerland-based engineering firm ARX is the project consultant.
MEED understands that this is the first of four packages that SAR is expected to tender imminently for the phosphate railway line. The other packages expected to be tendered shortly include the second section of track doubling, the depot and the systems package.
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 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 the construction of a cement sleeper manufacturing facility.
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