Saudi Arabia Awards $1.1 Billion Phosphate Railway Track Doubling Contract

Saudi Arabia, August 2026 – Saudi Arabian Railways (SAR) has awarded an estimated SR4 billion-plus ($1.1 billion) contract to Alomaier Trading & Contracting Company for a second track along approximately 100 km of the existing phosphate railway between the AZ1/Nariyah Yard and Ras Al-Khair. The project is intended to increase freight capacity on a key industrial corridor.

The contract includes track doubling, alignment modifications, utility bridges, culvert widening and hydrological structures. It will also convert the AZ1 siding into a mainline track and include support for signalling and telecommunications systems. Switzerland-based engineering firm ARX has been appointed as project consultant.

The project forms part of a wider programme to expand the capacity of the railway linking phosphate and bauxite mining areas in northern Saudi Arabia with processing and industrial facilities at Ras Al-Khair on the Gulf coast. The broader North Train network, formerly known as the North-South Railway, extends approximately 1,550 km and serves major mineral and industrial freight flows.

SAR is expected to award three additional packages for the phosphate railway in the near term. The wider programme is also understood to include additional freight yards, with implementation of the previously reported capacity-expansion programme expected to take around four years. Increasing track capacity is expected to support higher cargo volumes and facilitate further industrial production along the corridor.

The investment highlights Saudi Arabia’s continued use of rail infrastructure to support mineral logistics and industrial development. Alongside expanding track and freight-handling capacity, SAR is also considering greater localisation of railway materials and equipment, including a potential cement sleeper manufacturing facility, pointing towards a broader strategy to develop domestic rail supply-chain capabilities.

Source: MEED