SAUDI ARABIA, June 2026 — Investment in rail freight infrastructure remains a key component of Saudi Arabia’s efforts to enhance logistics efficiency, support industrial growth and reduce reliance on road transport. The latest project focuses on improving connectivity for one of the Kingdom’s largest industrial centres in the Eastern Province.
Saudi Arabia Railways (SAR) has awarded the Dammam Second Industrial City Railway Connection Project to a joint venture comprising OHL Arabia and Hassan Allam Construction Saudi. The project will deliver a 22.7-kilometre single-track freight railway linking the industrial city directly to the national rail network. The scope includes earthworks, civil foundations, track construction, signalling, telecommunications systems and network integration works.
The development also includes major infrastructure components such as a 265-metre bridge crossing Highway 615 and a 118-metre bridge spanning the Aramco pipeline corridor. Once completed, the rail connection is expected to improve freight movement between Dammam’s industrial facilities, logistics hubs, ports and inland distribution centres, providing manufacturers with greater transport flexibility and reliability.
Industry observers note that the project will strengthen links between Dammam’s industrial base, King Abdulaziz Port and the Riyadh Dry Port, making rail a more competitive option for freight transport. The project is also expected to support efforts to shift suitable cargo from road to rail, helping improve supply chain efficiency while reducing road congestion and emissions.
The rail link forms part of Saudi Arabia’s wider transport and logistics expansion programme, which includes the multi-billion-dollar Saudi Landbridge initiative and a series of freight corridor developments across the Kingdom. As Saudi Arabia seeks to position itself as a regional logistics hub under its Vision 2030 objectives, investments in rail connectivity are increasingly viewed as critical to supporting industrial diversification, trade growth and long-term economic competitiveness.
Source: Enterprise AM
SAR Advances Industrial Freight Connectivity With Dammam Rail Link
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Saudi Arabia continues to expand its rail freight infrastructure as part of its broader logistics and industrial development strategy. Saudi Arabia Railways (SAR) has awarded a contract for a new rail connection serving Dammam Second Industrial City, strengthening direct access between industrial production zones and the national freight network.
