Categories: Business

Arab News | Saudi Arabia Railways signs deals to expand freight capacity, upgrade rail systems



RIYADH: Saudi Arabia Railways has signed a series of agreements with international companies to expand freight capacity, improve fleet reliability and upgrade systems as the Kingdom strengthens its transport and logistics network.

The deals include a €22 million ($26 million) five-year contract with French rail company Alstom to support SAR’s North Freight fleet, as well as contracts with US locomotive manufacturer Progress Rail and US railcar manufacturer Greenbrier to supply new locomotives and freight cars to expand phosphate transportation.

The agreements come as SAR expands its freight network in line with Saudi Arabia’s National Transport and Logistics Strategy.

In April, the company announced five new logistics corridors to improve supply chain efficiency and integration between transport modes, supporting Vision 2030 ambitions to position the Kingdom as a global logistics hub.

SAR also signed a contract with rail systems company Hitachi Rail to upgrade signaling infrastructure for the Al-Mashaaer Al-Mugaddassah Metro Line and a memorandum of understanding with Turkish railway technology company AstraG Teknoloji to explore cooperation in railway technologies and digital solutions.

Freight performance

Under the Alstom contract, the company will provide maintenance services for critical onboard systems installed on locomotives operating along SAR’s North-South corridor.

The route carries about 13.5 million tonnes of freight annually and connects mining sites with processing facilities and export points.

“Our partnership with SAR is built on a shared ambition to strengthen rail performance and support the Kingdom’s long-term transport objectives,” Mohamed Khalil, Alstom’s managing director for the Middle East, said.

Alstom will introduce real-time monitoring and enhanced spare parts availability to improve fleet readiness and response times. The contract also covers system upgrades, digital tools, maintenance documentation and workforce training.

Phosphate expansion

SAR’s contract with Progress Rail covers the purchase of 33 new freight locomotives to support its North Railway Phosphate 3 expansion project.

A separate contract with Greenbrier covers the design, manufacture and supply of 780 new freight cars for the same project.

The two contracts are designed to increase phosphate transportation capacity while improving the readiness, reliability and efficiency of SAR’s freight fleet. They also support knowledge transfer and local content objectives.

Rail upgrades

Under its contract with Hitachi Rail, SAR will develop and modernize signaling infrastructure for the Al-Mashaaer Al-Mugaddassah Metro Line, focusing on improving safety, network reliability and operational efficiency.

SAR’s MoU with AstraG Teknoloji will explore cooperation in signaling and communications, digital transformation and smart railway solutions, as well as knowledge transfer and the development of national technical capabilities.



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