SAR awards contract for Dammam industrial city rail link

A new freight artery for Saudi industry: Saudi Arabia Railways (SAR) has awarded the contract for the Dammam Second Industrial City rail connection to a joint venture between OHL Arabia and Hassan Allam Construction, advancing a long-planned freight link designed to connect one of the Kingdom's largest industrial zones directly to the national rail network, according to a statement (pdf).

The details: The project will deliver a 22.7 km single-track railway, with the scope covering earthworks, civil foundations, track construction, rail systems, signaling, telecommunications, and network integration works. The package also includes a 265-meter bridge crossing Highway 615 and a 118-meter bridge spanning the Aramco pipeline corridor.

The case for rail: “This rail link addresses a practical logistics issue of directly connecting a major industrial production area into the national rail freight network,” Martin Tillman, founder and transport mobility planning specialist at TMP Consult, tells EnterpriseAM. “For manufacturers and logistics operators, the main benefit is likely to be improved reliability, reduced dependence on long haul trucking for suitable cargo types, and greater flexibility in how goods move between the industrial city, ports, inland markets, and distribution centers,” he adds.

Positioned for connectivity: “The project could strengthen the logistics relationship between Dammam’s industrial base, King Abdulaziz Port, and Riyadh Dry Port by making rail a more practical option for manufacturers and logistics operators,” Tillman says.

IN CONTEXT- The Dammam link also sits inside Saudi Arabia’s wider rail-and-logistics push, including the USD 7 bn Saudi Landbridge program connecting the Red Sea side of the Kingdom to the Gulf side. That project includes upgrades and extensions around Jubail, Dammam, Riyadh, Jeddah, King Abdullah Port, and Yanbu.

Beyond Dammam, there is a national rail buildout: SAR has already rolled out five Gulf-to-inland freight routes linking Gulf ports with the Kingdom’s central and northern logistics spine. The Kingdom is also activating a joint committee with Jordan to study a rail line through Syria, including route options and technical alignment. Saudi Arabia has also commissioned studies on a Saudi-Turkey rail link through Jordan and Syria — creating a possible northbound corridor route toward Mediterranean ports.