Saudi Arabia possesses huge investment opportunity in rail; cost obstacle for airlines: Al-Jasser

Saudi Minister of Transport, Saleh Al-Jasser

Saudi Arabia’s Minister of Transport, Saleh Al-Jasser, reviewed today, April 6, 2021, the latest developments in the Kingdom's railway and air transport sector.

During an interview on Al Saudiya TV Channel, Al-Jasser revealed the details of the land bridge project currently underway, emphasizing that it is intended for building a railway link connecting the east to the west of the Kingdom.

It requires the construction of a line from Yanbu to King Abdullah Port, followed Jeddah Port to Riyadh, in addition to developing the existing railway line to the Eastern Region.

The project will include the development of a large number of logistics areas and dry barriers on the route of the line.

Al-Jasser explained that studies on the project began in October 2019 and is now nearing completion, with the participation of an alliance led by a specialized Chinese company, which includes a large Saudi firm and a number of European and American entities specializing in various fields of railways.

Saudi Arabia possesses a great opportunity to invest in rail transport, particularly, since it has the largest railways in the region, and the government gives great importance to the development of railways in all its forms.

Regarding Saudi Arabian Airlines (Saudia), Al-Jasser said that cost is the biggest challenge faced by the air carrier, as it is a government entity facing weak competition. These factors contributed to higher costs compared to the companies operating commercially.

A comprehensive development plan is concluded, including fleet development, improving work environment, increasing the localization rate and improving services, the minister added, stressing that a lot of work has been done towards the plan.