“We are in the final stages of negotiations for equipment supply,” says the source. “We are close to finalising the agreement and expect a decision to be made within the next three months. Construction will start immediately afterwards.”
The project is valued at $450m and will take two years to complete.
Germany’s SMS Meer and Italy’s Danieli are both in discussions with al-Tuwairqi to secure the contract to supply the equipment.
Al- Tuwairqi will build the plant.
The Dammam plant is the first rail manufacturing plant in the GCC and will have a production capacity of 30,000 tonnes a year.
With a number of large-scale rail projects underway in the region, demand for track is huge.