International consultancies and railway operators say they are keen to participate in Saudi Arabia’s planned privatisation of the operation and maintenance of existing mainline railway services and associated stations, dry ports and rolling stock.

“It is an exciting development…. It’s one we have been expecting for some time,” a source familiar with Saudi Arabia’s railway sector tells MEED.

While the solicitation of interest covers merely the existing Riyadh–Dammam and North-South Railway routes, the document indicated it could also cover future projects such as the GCC rail network, the Landbridge, and other smaller sections of railway planned within the kingdom.

According to a source from one company that plans to participate in the bidding process, the request is evidence that the Public Transport Authority (PTA) is currently evaluating how the kingdom’s entire transport network will be managed and financed.

However, it remains unclear if unawarded urban rail projects such as the Mecca Metro will come under the direct responsibility of the PTA and its privatisation programme.

“As of now, it appears there is equal probability for those projects to be procured using a public-private partnership (PPP) or a hybrid engineering, procurement and construction (EPC) plus finance model,” the source tells MEED.