Alstom inks US $80mn deal with Saudi Railway Company
The deal aims to enhance SAR’s east-west freight corridor, which is said to be essential for the Kingdom’s economic growth
Alstom has announced a new services agreement with Saudi Railway Company (SAR), which is said to further strengthen Alstom’s commitment to the future of transportation in the Kingdom.
The US $80mn deal covers five-years of technical support and includes a Spare Part Supply Agreement (TSSSA), and aims to enhance SAR’s east-west freight corridor, which is said to be essential for the Kingdom’s economic growth.
As per the terms of the agreement, Alstom will provide SAR with comprehensive support, encompassing technical assistance, a steady supply of spare parts, and tailored staff training programs.
To digitalise maintenance process and bring more efficiency, the locomotives will be continuously monitored in real-time by Alstom’s digital solution HealthHub. This proven technology will enable a predictive maintenance approach for SAR, reducing downtime and optimising fleet availability. These measures will ensure the long-term efficiency and reliability of the diesel locomotives operating on the vital east-west freight corridor, said Alstom in its statement.
“This agreement is a testament to our shared vision with SAR of advancing Saudi Arabia’s transportation ecosystem in alignment with Vision 2030. By empowering SAR with cutting-edge technologies and knowledge transfer, we are fostering a competitive and sustainable sector while enriching local talent and expertise within the Kingdom’s railway industry. This collaboration will provide SAR’s engineers and technicians with invaluable hands-on experience, bolstering their capabilities and solidifying their vital role in the Kingdom’s ambitious growth plans,” said Mohamed Khalil, Alstom’s Managing Director of Middle East Regional Headquarters.
The east-west railway plays a vital role in connecting the key ports of Dammam and Jubail with the Riyadh dry port, facilitating the seamless flow of goods across the country. This enhanced efficiency directly supports Saudi Arabia’s ambitious Vision 2030 plan to diversify the economy and strengthen its position as a global logistics hub, the statement concluded.
