Binladin leads on north-south line

15 December 2006
Saudi Binladin Group (SBG) is low bidder for the first three major packages on the proposed 2,400-kilometre-long north-south railway project. The client, the Public Investment Fund (PIF), is planning to award the contracts, totalling an estimated SR 7,000 million ($1,863 million), by the end of the year.

PIF had stipulated that the three packages would be awarded to separate contractors. However, sources close to the project say that the client may negotiate with SBG for all three on condition that it subcontracts the work to other bidders. The three packages attracted bids from Australia's Barclay Mowlem, Spain's OHL, Saudi Oger and a host of Chinese contractors.

The packages tendered are:CTW 100: The estimated SR 2,350 million ($625 million) contract covers a 650-kilometre section from the planned fertiliser and aluminium complex at Ras al-Zour on the Gulf coast to the bauxite mine of Al-Zabirah;CTW 200: The SR 2,000 million ($533 million) contract involves the construction of 440 kilometres of track from Al-Zabirah to the mid-point of the Al-Nafud region;CTW 300: The SR 2,700 million ($720 million) contract calls for the construction of a 782-

kilometre section from Al-Nafud to the Al-Jalamid phosphates mine and Qurayyat, near the Jordanian and Iraqi borders.

PIF is expected to issue a tender by mid-December for the fourth and final major package comprising a 480-kilometre passenger line between Al-Zabirah junction and Riyadh's King Khaled International Airport. It will also tender at a later stage a separate package linking the airport with the Saudi Landbridge project. A group led by the US' Louis Berger is the project manager on the railway project.

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