Saudi Arabia greenlights $1bn doubling of North Train Freight Line to boost mining sector, says minister

  • 1/10/2024
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RIYADH: Saudi Arabia has approved the doubling of the North Train Freight Line with an estimated investment of SR4 billion ($1.07 billion), the Kingdom’s transport and logistics minister revealed. Speaking at the Future Minerals Forum in Riyadh, Saleh Al-Jasser said that all these efforts to enhance the transportation facilities will strengthen the mining sector in Saudi Arabia. “Many of the roads that we have built in the past were developed to support the mining industry. Our longest rail line was built to support the mining industry, which is the Northern Railway (North Train Freight Line),” he said. The minister added, “We have already approved the doubling of that line, with an investment of SR4 billion, to support the mining industry.” Formerly referred to as the North-South Railway, the North Train is a 1,550 km-long freight line that extends from the phosphate and bauxite mines in the far north of Saudi Arabia to the Al-Baithah junction. From there, it splits into a line heading south to Riyadh and a second line going east to downstream fertilizer production and alumina refining facilities at Ras Al-Khair on the Gulf coast. Al-Jasser emphasized that Saudi Arabia has devised an ambitious strategy to position itself as a global logistics hub. This strategic initiative aims to foster the growth of the mining sector and enhance the Kingdom’s standing in the global logistics landscape. “Transportation and logistics are key enablers for the mining industry. The great news is that we already have a very strong infrastructure and a great partnership with the mining industry,” he said. During the talk, the minister also emphasized the necessity of strengthening public-private partnerships, highlighting that building infrastructure costs a substantial amount of money. “Infrastructure projects, including transportation projects, are capital-intensive and require huge investment. No matter how much government money we have, it is not enough. So, we have to partner with the local and international private sector to build these infrastructures,” he said. Al-Jasser added that Saudi Arabia’s transport and logistics strategy involves an investment of SR1.3 trillion, with the majority of this fund expected to come from the private sector. The minister emphasized that “connectivity” is the most crucial factor, playing a significant role in strengthening the mining sector. “It is connectivity, whether it is road, marine, or rail connectivity, that is crucial to supporting the mining industry. The transportation and logistics sector in Saudi Arabia is committed to partnering with and enabling the mining industry in the Kingdom,” he concluded.

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