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Rumaih Al-Rumaih, President of the Public Transport Authority (PTA)
The merger between Saudi Railway Co. (SAR) and Saudi Railways Organization (SRO) will enhance the sector’s efficiency and sustainability, Saudi Press Agency reported, citing Rumaih Al-Rumaih, President of the Public Transport Authority (PTA).
It will also help the sector implement its ambitious plans for linking railways between the Kingdom and neighboring countries, Al-Rumaih said, highlighting that the project will also have a significant positive impact.
The merger comes in line with the best international practices, as it unifies the ownership of the railways industry to achieve the Vision 2030 objectives and make the Kingdom a global logistic hub.
Moreover, the merger receives strong interest from railways services beneficiaries or investors, and also receives interest on the levels of localization and boosting local content, Al-Rumaih added.
The merger aims to achieve the national transport and logistic services strategy through enhancing the operating efficiency and full governance of railways projects, automating and facilitating measures, providing more jobs for Saudi youth and creating new investment opportunities for foreign investors and the Saudi private sector.
Work is ongoing to help the new entity achieve its strategic objectives to improve the quality of life, develop transport services and shift the Kingdom into a global logistic hub that links three continents, Al-Rumaih noted, concluding that it encourages the participation of the private sector in giga projects like NEOM, Qiddiya, Amala and the Red Sea.
According to the data compiled by Argaam, the Saudi Cabinet decided, on Feb. 16, to terminate SRO, and replace it with SAR in all contracts, agreement, contractual obligations, licenses, permits or decisions as of next April.
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