The winning consortium comprises Canada's Canrail, Systraof France and Saudi Consolidated Engineering Services (Khatib & Alami). Under the 18-month contract, the team will carry out the railway's general design and operating plan, including preliminary route definition, functional definition of systems and rolling stock, a detailed design of the railway roadbed and track structure and evaluation of the existing rail infrastructure between Riyadh and Dammam, which is under the auspices of Saudi Railway Organisation (SRO).

The Canrail group will examine the feasibility of a passenger link on the minerals railway route and the option of a 280-kilometre link to Jordan. In addition, the group will be responsible for project management, including drawing up construction tender documents, which are expected to be issued in early 2005.

The railway project will involve the construction of 1,400 kilometres of new railroad from the Al-Jalamid phosphate mines in the northwest of the kingdom via Al-Zabirah to Riyadh, where it will be connected to the existing 450-kilometre railroad to Dammam on the Gulf coast, which will be upgraded. A new link will also be built along the coast to the industrial zone at Ras al-Zour, north of Jubail, which will include Maaden's planned alumina refinery and aluminium smelter.

The PIF will provide 60 per cent of the financing for the scheme, while Maaden and the local Saudi Ogerwill finance 20 per cent each of the project investment up to a maximum of $500 million. The railway is expected to be run and maintained by a foreign operator under a long-term concession.

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