PIF signs railways contracts 2 Riyadh

In the framework of the Public Investment Fund's keenness to
encourage
Saudi companies' participation and as part of the local content of
railway industries, an Memorandum of Understanding (MoU) was signed
between the contracting company and the Saudi Advanced Electronic
Company AEC, which is one of the Economic Offset Program (EOP)
includes the participation of Saudi engineers and technicians in the
stages of the project implementation, including the operation,
maintenance and spare parts manufacturing.


The second contract of designing and manufacturing diesel
locomotives with Electro-Motive Diesel, Inc. amounts to SR 337,
794,487. It includes building of 25 locomotives with 4,300 Horse
Power to be used in tolling 3 KMS long 160 wagons train with each
locomotive each having a capacity of 16000 tons for each train.

The third contract was inked with China South Locomotive and Rolling
Stock Industry (Group) Corporation (CSR) with SR 342, 299, 074 to
manufacture and design 668 wagons; 524 of these will be used for the
phosphate transfer, each wagon carrying 100 tons of weightage.


Such a project comes within the strategic development program that
aims to strengthen the means of transportation and the exploitation
of the mineral resources in the Kingdom of Saudi Arabia in accordance
with the decision of the cabinet on 04/03/1424 AH, which mandated the
PIF for the establishment of this project in order to transfer the
phosphate ores and bauxite from the northern and the central Saudi
Arabia to the mining and processing facilities at Ras Zour on the
Arabian Gulf.


The Minister of Finance, Dr. Ibrahim Al-Assaf, pointed out that the
value of contracts signed in the railway projects amounted to more
than SR 12 billion, including leveling the ground and paving new
lines in the Al Nofoud desert as well as the development of the
railways itself.

In a news briefing after the signing of contracts, Al-Assaf said
that the project is progressing as planned and will be concurrent
with the implementation of phosphate and bauxite facilities in the
Ras Al-Zour, pointing out that the commencement of the 'mining train'
starting in 2010 will coincide with the completion of the building
facilities at Ras Al-Zour.


In this regard, Al-Assaf noted several projects such as the
Haramain-Train project signed several weeks ago as well as the land
bridge project linking Jeddah and Riyadh and some other primary plans
as regards a project to link the GCC states, which is still under
consideration in terms of its costs and details. Moreover, there is
preliminary approval of the leaders of the Gulf Cooperation Council's
states for its implementation. "However, at the end, the resolution
depends on its economic feasibility".


--SPA