The Dutch firm Royal Haskoning is working on a feasibility and preliminary design contract for a new public transport system in the Saudi city of Dammam.
The company is undertaking the project in a joint venture with the local Mshari al-Shathri Engineering.
The study is expected to take 15 months to complete.
Initial plans for the transport network include a 50-kilometre light rail track, two bus rapid transit lines totalling 110km, and 350km of feeder buses.
The urban areas of Dammam and Al-Khobar have seen significant growth, with about 2 million people using private cars. The planned public transport system is expected to alleviate the worsening traffic congestion.
Major investments have been made in Saudi Arabias public transport systems in recent months. More than $22bn-worth of deals have been awarded for the Riyadh Metro scheme, while US firm Parsons Brinckerhoff has been selected as the project management consultant to oversee a mass transit rail project in Mecca.