Contractor warned about Haramain railway delays

21 April 2015

Saudi Railways Company demands alternative emergency plan

  • Saudi Railways Company threatens contractor
  • Second warning issued to Saudi/Spanish consortium
  • SRO has demanded an alternative plan to compensate delays

Saudi Railways Organisation (SRO) has warned the Saudi/Spanish-led consortium Al-Shoula Group that it may be removed from the project to develop the Haramain High-Speed Rail Network if delays continue to slow down progress.

Following a visit from Saudi Arabia’s Transport Minister Abdulla al-Muqbel, Al-Shoula Group has been told to produce an alternative emergency plan to compensate for numerous delays on the scheme. The consortium is working on phase 2 of the project.

A source close to the project told MEED that tensions have been rising since late last year, when the client issued a similar warning. It is understood that SRO may consider withdrawing the project from the group if performace does not improve.

In December 2014, local media reported that Al-Muqbel asked the contractor to offer an emergency plan that includes increasing the equipment and manpower and other materials to expedite the work of the project.

The Haramain High-Speed Rail Network, which was announced in 2009, will link the cities of Medina, Jeddah and Mecca. It will be 450 kilometres in length, with five stations (Central Jeddah, King Abdulaziz International airport in Jeddah, Mecca, Medina and King Abdullah Economic City in Rabigh) along its route.

Phase 2 is considered the most challenging part of the project. It covers the building of railway tracks, the installation of signalling and telecommunication systems, electrification, operational control centre, the purchase of 35 trains and their operation and maintenance for 12 years. It also requires that a centre be set up to train Saudi graduates on the industry.

The contract for phase 2, worth SR30.8bn ($8.2bn), was signed on 14 January 2012.

The project is being funded by Saudi Arabia’s government-owned Public Investment Fund.

The Al–Shoula Group-led consortium comprises:

  • Al–Shoula Group(Saudi Arabia)
  • Al-Rosan Contracting Company (Saudi Arabia)
  • Administrador de Infraestructuras Ferroviarias (Spain)
  • Cobra Instalaciones y Servicios Internacionales (Spain)
  • Consultrans (Spain)
  • SA de Obras y Servicios (Spain)
  • COPASA (Spain)
  • Dimetronic (Spain)
  • Imathia Construccion (Spain)
  • Instalaciones Inabensa (Spain)
  • Indra Sistemas (Spain)
  • Ingeniera y Economia del Transporte (Spain)
  • Obrascon Huarte Lain (Spain)
  • RENFE-Operadora (Spain)
  • Patentes Talgo (Spain)

Read the full Haramain High-Speed Rail Network project profile

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