Middle East
Saudi Arabia launches billions railway upgrade
Seetao 2025-12-14 13:13
  • Not only did it unveil the prelude to the systematic strengthening of Saudi Arabia's freight transportation channels
  • It is also a global enterprise that has long been deeply involved in the construction of the country's railways
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Against the backdrop of global energy transition and logistics system restructuring, Saudi Arabia is accelerating the modernization and expansion of its railway network. Recently, significant progress has been made in the country's railway sector - a phosphate railway double track renovation project worth over 4 billion Saudi riyals (approximately 1 billion US dollars) has officially launched bidding, marking the beginning of Saudi Arabia's strategy to strengthen resource export channels and enhance logistics competitiveness through railways.

The first package for this tender by Saudi Arabian Railways (SAR) focuses on a critical section of approximately 100 kilometers connecting the AZ1/Naria marshalling yard to the Port of Rasghar. The project is far more than just laying parallel tracks, it is a systematic upgrade that includes line improvement, bridge and culvert and hydraulic structure renovation, and comprehensive updating of signal and communication systems. The project is being advised by the Swiss engineering consulting firm ARX, and the bidding deadline is January 20, 2026.

This is just the prelude to the overall expansion plan. SAR has decomposed the phosphate railway expansion project into four packages. The first package directly targets the bottleneck of transportation capacity, and fundamentally improves the continuity and traffic efficiency of the line by adding double tracks, adjusting the section of the line, building new bridges, widening culverts, and optimizing the AZ1 siding function. As the "resource artery" connecting the Wadsha Mahler mining area and the Rasheil port, the double track construction of this route will double its transportation capacity. Subsequent packages will also cover the double track project, vehicle depot construction, and system equipment from the Zabila hub to the Ha'il multimodal transport station, forming a complete capacity expansion loop.

It is worth noting that while SAR is advancing the project, it is also evaluating the feasibility of improving the localization rate of railway materials and equipment, including researching and constructing cement sleeper production facilities. This move not only aims to ensure supply chain security, but also reveals Saudi Arabia's long-term intention to cultivate its local railway industry chain through infrastructure investment.

This series of measures closely corresponds to the overall expansion blueprint of Saudi Arabia's national railway network. At the end of 2024, Saudi Arabia's Minister of Transport and Logistics and Chairman of SAR announced plans to expand the national railway network from the existing approximately 5300 kilometers to over 8000 kilometers, with a focus on connecting key hubs such as King Abdullah Port, Yanbu Industrial City, and Lasherr Port, and building an efficient logistics system that connects ports, railways, and parks. The phosphate railway double track project is one of the core projects of this round of freight railway expansion.

This railway corridor has a deep connection with China. The phosphate railway itself is an important component of the Saudi North South Railway (Northern Railway) network, and Chinese manufacturing has been deeply embedded in its operation - CRRC Changjiang Group has provided a large number of dedicated phosphate hopper cars for it. Looking back at history, as the backbone of transportation in Saudi Arabia, the North South Railway also had the presence of Chinese companies in its construction process: China Civil Engineering, China Railway 15th Bureau, China Railway 18th Bureau, and others all participated in this giant project that runs through the desert and has a total length of 2750 kilometers.

With Saudi Arabia pressing the "accelerator button" for railway upgrades, a multi billion dollar market competition involving funding, technology, and industrial chain integration has begun. From equipment supply to engineering construction, Chinese enterprises have established a solid foundation in Saudi Arabia's railway network through years of deep cultivation and accumulation. In the new wave of expansion, Chinese enterprises are not only expected to continue participating in the hardware construction of infrastructure, but may also usher in new opportunities in areas such as operation and maintenance, localization cooperation, and even standard output. This upgrade is not only a reshaping of Saudi Arabia's logistics landscape, but also an important stage for China's infrastructure strength to continue to emerge in the global market. Editor/Xu Shengpeng


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