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News Saudia > Business > Saudi Railways Awards Contract for Freight Link to Dammam Industrial Hub
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Saudi Railways Awards Contract for Freight Link to Dammam Industrial Hub

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Last updated: June 8, 2026 12:00 am
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The Saudi Press Agency reported that Saudi Arabia Railways is proceeding with a rail link project connecting Dammam Second Industrial City to the kingdom’s main railway network. The development aims to improve integration between the industrial zone and national logistics systems. SAR noted that the connection will provide direct rail access for factories in one of the country’s largest industrial hubs.

According to SAR statements carried by the agency, the project includes construction of a 22.7-kilometer freight line together with a dedicated freight yard. This infrastructure will link more than 1,000 industrial facilities to wider rail routes serving ports and logistics centers. The addition forms part of ongoing upgrades to the East Train network that already spans 556 kilometers in the region.

Saudi Arabia Railways awarded the engineering and construction contract to a joint venture of OHL Arabia and Hassan Allam Construction Saudi Limited, multiple industry updates confirmed. The agreement is valued at 500 million Saudi riyals. Award of the work followed a competitive tender process managed by the rail operator.

The Saudi Press Agency indicated that the new link will strengthen connectivity between manufacturing sites, maritime ports and distribution hubs throughout the Eastern Province. Such improvements are expected to support more efficient cargo movement and reduce transit times for industrial shipments. SAR described the project as a step toward greater use of rail for freight transport in the area.

Project planning documents reviewed by regional outlets place the initiative within Saudi Arabia Railways’ continued expansion of freight services. The operator has progressively extended its network to serve key economic zones. Officials have maintained that these connections help align rail capacity with rising industrial demand in the Eastern Province.

Separate updates from logistics observers noted that the Dammam Second Industrial City rail connection will complement existing road and port infrastructure. The completed link is scheduled to enter service after construction and testing phases conclude. SAR has not yet released a detailed timeline for operational handover.

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ByNewsDesk
News Saudia NewsDesk is the desk responsible for News Saudia's daily news coverage, monitoring and reporting developments across the Gulf from official sources, including national news agencies and government communications. Its focus is accurate, timely and factual coverage of the region.
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