Saudi and Korean firms sign rail bid joint venture

Abdullah AM Al-Khodari Sons has entered a joint venture with Korea’s LOTTE Engineering & Construction Company to pre-qualify for a buildings tender on the North-South rail project launched by Saudi Railway Company.

The Al-Khobar based civil and construction contractor said it would own 55% of the joint venture that will bid for the passenger station, mosque and headquarters package. It would work on the project with LOTTE, which has branches in Abu Dhabi and Libya, if successful, it added.
The upcoming 2,400km North-South rail project will run from the border of Saudi Arabia with Jordan to Riyadh, passing through Jouf, Hail, Qassim and Sudair, connecting the northern region to the Hail region allowing the transportation of phosphates and bauxite to Ras Al Zawr in the north-east, then on to Jubail. Abdullah Al-Khodari has already won a one-year contract from Saudi Arabian Mining Company to supply above- and below-ground pipe work for the aluminium smelter in Ras Al Zawr.
Completion of the initial phase of the North-South Railway was announced by Dr Ibrahim Al-Assaf, finance minister and chairman of the Public Investment Fund on 24 May.
Railway Gazette reported that trial operations on a 1,392km section of the project began last week, with a four-wagon train carrying 200 tonnes of phosphate concentrate from the Ma'aden mine at Al Jalamid to Ras Azzawr port on the Gulf coast. By completion, 155 wagon trains will carry loads of 15,000 tonnes, it added.
The rail project is scheduled to open by 2013, with a link to the border with Jordan at Al Haditha in 2014.
The project is one of many new rail developments to arise across the kingdom. In March Al-Balad Al-Ameen Company for Urban Development said it would launch a tender for an intercity rail network in Makkah in the third quarter. Ahmad Al-Baloushi, executive president, said the company had already carried out a technical study of the project and started a feasibility study. It will eventually link to the $1.9bn Haramain High Speed rail network.
It is the second joint venture announced this month by Al-Khodari after announcing it had signed a Memorandum of Understanding with Saudi Kier Construction to pre-qualify for projects in the Eastern Region.
Al-Khodari’s share price rose 0.3% yesterday in Riyadh and closed at SAR 68.5.