Saudi Arabia Company Law by ukg16043

VIEWS: 194 PAGES: 30

More Info
									The Saudi Rail Expansion Projects
Establishing a successful rail network
in Saudi Arabia
Saudi Railway Organization
USA
May, 2005
Contents

• Saudi Arabia
• Existing Railways In Saudi Arabia
• Expansion Projects and their Implementation
• The Railway Expansion Program
    - The Saudi Landbridge
    - The Mekkah Medinah Rail Lik (MMRL)
    - The North South Line



                                           1
Saudi Arabia

                          Syria
              Lebanon
                                      Iraq              Iran
                        Jordan



      Egypt                                        Bahrain
                                    Kingdom of Saudi Qatar
                                         Arabia          United Arab Emirates


                                                               Oman


                          Eritrea            Yemen
     Sudan                                                     Arabian Sea

                                      Djbouti Gulf of Aden

                                             Somalia
                        Ethiopia




                                                                                2
Existing Railways In Saudi Arabia
Existing Railways In Saudi Arabia
Saudi Arabia is comparable to Western Europe in size and is
among the 25 largest economies in the world …

                                                        57 locomotives
                                                        75 passenger coaches

 2nd Track : 449 km built in the
                                                        2,200 freight wagons
 1980s and used by passenger                            300 million passenger-km/year
 trains
                                                        1.0 billion ton-km of cargo/year
                                              Dammam

                                   Riyadh   Hofuf

                                            Haradh


 1st Track : 556 km built in the
 1950s and now used only for
 freight service.




                            yet, rail network is relatively modest…
                                                                                      4
Existing Railways In Saudi Arabia
  … modest network, but impressive growth.

                                    Containers Transported
                                      (Dammam-Riyadh)
                      300   (Compounded Annual Growth Rate)           283
                                     CAGR: 13.3%

                                                               236
   TEUs (thousands)




                      250
                                                    218
                                         198
                      200
                              172


                      150


                      100
                             2000       2001       2002       2003   2004




                                                                            5
   Existing Railways In Saudi Arabia

                                  Freight (Thousand Tons)

                   2600               CAGR: 11.4%           2,500

                   2400

                   2200
 (Thousand tons)




                                                    1,894
                   2000

                   1800   1,622            1,635

                   1600            1,477
Freight




                   1400

                   1200

                   1000
                          2000     2001    2002     2003    2004



                                                                    6
Existing Railways In Saudi Arabia


                                                    Revenues (SR millions)
                         250                                        Revenues                         235
Revenues (SR millions)




                         225                                   CAGR: 16.2%
                                                                                              195
                         200
                                                                           164
                         175
                                                         150
                         150            129

                         125

                         100
                                     2000             2001              2002              2003      2004


                               This includes a small proportion of property related revenue

                                                                                                           7
Regional container traffic
In 2003, total container traffic handled in the Middle East/
Gulf ports was an estimated 11.6M TEUs1 (+124% from 1995)

                      Total Middle East Gulf container throughput
                                                                            11,605
                   12,000            CAGR: 9.3%

                   10,000
                                                              7,406
     ('000 TEUs)




                    8,000
                                                   5,178
                    6,000

                    4,000             2,668
                             1,496
                    2,000

                       0
                            1980     1990       1995         2000          2003


Source: Containerization International Yearbooks & Port Authorities 2004
Note:
1     Including empty containers and transhipment traffic

                                                                                     8
Gulf container market
Growth is a function of both national activity AND
transhipment traffic. As a result:
           The UAE has benefited from regional
           growth twice as much as other countries

Share of Gulf container throughput, 2003


                                 Bahrain Kuwait
                         Qatar
                                   2%             Iraq
                          1%              3%
                                                   8%
                                                     Oman
                                                     12%



    UAE
    53%
                                                  Saudi
                                                  Arabia
                                                   21%


Source: Dynamar B.V.

                                                            9
Container traffic for SRO
Containers ... SRO’s core business

   50% of containers arriving at Dammam Port
     have Riyadh as their final destination.

   85% of all containers destined for Riyadh from
     Dammam Port are transported by Rail.

   65% of SRO’s revenue comes from transport
     of containers.




                                                     10
Saudi/American cooperation in
railways
 First Line Built and run by Saudi Arabian American Oil Company
   (Aramco), launched on 20 October 1951

 General Contractor was Bechtel
 Locomotives in operation are manufactured by GM
 SRO just purchased double stack rail container cars from Johnstown
  American Corporation

  Other companies such as:

        - ABC Rail Products Corp
        - GE Transportation Systems
        - Simons Machine Tool corp
        - Other 25 companies



                                                                       11
Expansion Projects and their Implementation
Expansion Projects and their Implementation
   In 2002, the Kingdom of Saudi Arabia (“KSA”) announced its intention
    to upgrade and expand its existing rail network

   Three new railways lines will be constructed
        •   Saudi Landbridge
        •   Makkah Madinah Rail Link
        •   North-South Railway

   The Supreme Economic Council of Saudi Arabia approved to
    Implement the Saudi Landbridge and the Makkah Madinah Rail Link
    through the private sector on a Build Operate Transfer (BOT) basis
        • Saudi Railways Organization (SRO) is the “Executing Agency”
          for the two projects

   The North-South Railway will be constructed as a public works
    project by the Public Investment Fund (PIF) and the Saudi Arabian
    Mining Company Ma’aden


                                                                        13
The Railway Expansion Program
The Existing & Future Network

                Hazm Al-Jalamid
    Qurayyat

                                         Ras Azoor

                Hail                         Jubail
                              Zabierah
                                                  Dammam
           Madinah     Buraideh               Hofuf
      Yanbu                       Riyadh      Haradh

       Jeddah
                 Makkah




         .… connecting major cities in the Kingdom
                                                           15
The Saudi Landbridge (SL)
                             950 km (590 miles) of new line
                               between Riyadh and Jeddah
                             115 km (71 miles) of new line
                               between Dammam and Jubail


                            Jubail

                                 Dammam

               Riyadh        Hofuf

                           Haradh

   Jeddah




              … linking the Red Sea to the Gulf
                                                               16
SL Parameters

   Type of Services
       Primarily a freight/container line
       Passenger traffic also expected
       Interoperability with the North-South line

   Technical Parameters
       Single track with the option of expanding to double track in the
        future
       Track should be designed for speed of 180 km/h (112 mph) for
        freight and passenger trains
       25 ton axle load

   Stations
       (3) freight stations to be built in Jeddah
       (2) passenger stations to be built in Jeddah: at the Airport and in
            the city center



                                                                              17
Makkah Madinah Rail Link (MMRL)

                                 Approximately 600 km (373 miles)
                                   of new line linking Jeddah to
                                   Makkah, Madinah and Yanbu




                                       Dammam

             Madinah   Riyadh       Hofuf
   Yanbu
                                 Haradh


    Jeddah
              Makkah




                                                                   18
MMRL Parameters

 Type of Services
      Heavy passenger traffic between Makkah-Jeddah-Madinah
      Passenger/freight between Jeddah-Yanbu

 Technical Parameters
      Jeddah-Madinah/Yanbu line likely to be conventional railway with a
       max speed of 250 km/h (155 mph)
      Jeddah-Makkah line likely to be high speed, high tech, to be decided
       by the winning concessionaire
      Bridges and tunnels will be needed for the line to Makkah

 Stations
      (2) in Jeddah
      (2) in Mekkah
      (1) in Madinah
      (1) in Yanbu


                                                                              19
Equipment & Services
Saudi Landbridge and MMRL will require a large amount of
equipment and services

   Infrastructure Materials
       Rails = 4000 km (2500 mile), including length in stations and sidings
       Signaling systems
       Repair facilities, maintenance equipment and fuelling stations

   Rolling Stock items
     Freight cars = 370 SL + 100 MMRL
     Locomotives = 127 SL + 160 MMRL (DMU/ EMU sets each having 4 cars)
     Container cars = 2418 SL + 400 MMRL
     Passenger coaches = 60 SL + 650 MMRL


 Services
       Engineering
       Design
       Construction & Construction Management

                                                                                20
Result of projects under SRO
                                            East-West Railway
                                            (Saudi Landbridge)
                                            Mekkah Medinah Rail Link
                                            (MMRL)
                                            Existing network
                               Jubail

                                   Dammam

           Madinah              Hofuf
  Yanbu
                      Riyadh   Haradh

  Jeddah
           Makkah




  … connecting the three major cities in the Kingdom
                                                                 21
The Project Advisors
SRO has retained a team of international advisers …
                     Financial




                     Technical




                       Legal

                     The Law office of Abdulaziz Al-Fahd


 … to help in planning and structuring of the SL concession


                                                           22
Status of the Saudi Landbridge

  Investor pre-qualification process
   (Issued April 18th 2005)
  Issue tender documents to pre-qualified consortia
   (3rd Quarter 2005)
  Receive and evaluate bids
   (1st Quarter 2006)
  Negotiate with preferred bidder(s)
   (2nd Quarter 2006)
  Award concession
   (3rd Quarter 2006)




                                                       23
The North-South Project
The North South Project will add approximately 2,000 km to existing
network …

                                                            North-South Railway
               Hazm Al-Jalamid
                                                            Existing network
 Qurayyat

                                           Ras Az Zawr

              Hail
                                Zabierah           Dammam

                     Buraideh                   Hofuf

                                   Riyadh Haradh




            … connecting northern cities with the Capital
                                                                               24
North-South Parameters

 Type of services
      Mineral traffic will be transferred from the North to Ras Az Zawr
       on the East coast
      Passenger traffic and general will be linked to Riyadh city the
       Capital

 Technical Parameters
      Single track
      32.4 ton axle load

 Stations
      Freight stations
      Passenger stations in cities such as Hail, Qaseem, Zabeerha,
       Hazm al-jalamid




                                                                           25
Equipment & services
The North –South railway will require large amount of
equipment and services

 Infrastructure Materials
     Rail= 5000 km (3,125 miles)
     Signaling systems
     Repair facilities, maintenance equipment and fuelling stations


 Rolling Stock items
            cars = 1,450
     Freight
     Locomotives = 35
     Passenger coaches = 20


 Services
     Engineering
     Design
     Construction   & Construction Management


                                                                       26
Business Opportunities in Saudi Railways

 Export of goods and services to the existing Saudi
   railway network

 Export of goods and services to the Saudi Landbridge,
  Makkah Madinah Rail Link or North-South Railway

 Likely interested parties include:
      •   Construction Companies
      •   Equipment Suppliers
      •   Rail Operating Companies
      •   Logistics Companies
      •   Passive Investors (Individuals/ Institutional Investors)




                                                                     27
The Railway Expansion Program
Railway Expansion Program will add 3,600 km of track to the
existing network …
                                                      East-West Railway
                                                      (Saudi Landbridge)
             Hazm Al-Jalamid                          Mekkah Medinah Rail Link
                                                      (MMRL)
 Qurayyat
                                                      North-South Railway
                                    Ras Az Zawr
                                                      Existing network
            Hail                        Jubail
                         Zabierah            Dammam
        Madinah                          Hofuf
                   Buraideh
  Yanbu                        Riyadh Haradh

   Jeddah
              Makkah




                                                                             28
Further information and queries?



              Please visit:
 www.SaudiRailExpansion.com


          THANK YOU


                                   29

								
To top