• 4 minutes End of Sanction Waivers
  • 8 minutes Balancing Act---Sanctions, Venezuela, Trade War and Demand
  • 11 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 14 minutes What Would Happen If the World Ran Out of Crude Oil?
  • 1 hour New German Study Shocks Electric Cars: “Considerably” Worse For Climate Than Diesel Cars, Up To 25% More CO2
  • 5 hours Permafrost Melting Will Cost Us $70 Trillion
  • 43 mins Nothing Better than Li-Ion on the Horizon
  • 5 hours Russia To Start Deliveries Of S-400 To Turkey In July
  • 4 hours Occidental Offers To Buy Anadarko In $57 Billion Deal, Topping Chevron
  • 1 hour UNCONFIRMED : US airstrikes target 32 oil tankers near Syria’s Deir al-Zor
  • 4 hours Facebook Analysts Expect Earnings Will Reinforce Rebound
  • 21 hours Countries with the most oil and where they're selling it
  • 41 mins How many drilling sites are left in the Permian?
  • 8 hours ..
  • 22 hours Section 232 Uranium
  • 24 hours Deep Analysis: How China Is Replacing America As Asia’s Military Titan
  • 14 hours Iran Sabre Rattles Over the Straights of Hormuz
Top Heavy Oil Markets Continue To Rally

Top Heavy Oil Markets Continue To Rally

Oil markets continued their way…

New Saudi Railway Expected To Reduce Dependence On Crude Oil

Rail

Saudi Arabia plans to soon issue contract tenders for a 1,000-mile railway between the Red Sea and the Persian Gulf, and to extend links to serve oil giant Aramco, Saudi Railway Company’s chief executive Bashar Al Malik told Bloomberg in an interview published on Monday.

Saudi Arabia has been planning the 1,000-mile Red Sea-Persian Gulf link—Land Bridge—since 2008, but tabled it after Saudi Arabia and private companies failed to initially agree on the financial terms of a deal.

The Saudis are now “moving ahead to implement the project” after Saudi Railway saw an encouraging response from the private sector to an invitation for expressions of interest, Al Malik told Bloomberg.

The Land Bridge is expected to cut three days of the current five-day seaborne journey of freight around the coasts of Saudi Arabia in a project that is seen as an important step to reducing Saudi economy’s dependence on crude oil.

According to Saudi Railway Company’s Al Malik, the tenders will be issued at the end of this year or at the beginning of next year. International and local engineering companies and financial institutions are expected to bid in the tenders, the manager told Bloomberg. The cost for the Land Bridge construction would depend on the location of the terminus on the Red Sea and on the exact route that would be chosen, Al Malik noted.

Related: Supermajors Prepare For A Permian Bidding War

Apart from the 1,000-mile new link, Saudi Railway Company plans to expand lines to better serve Aramco, Al Malik told Bloomberg.

Heavy transport of minerals, oil, and petrochemicals is the largest source of income among Saudi Railway’s service lines, according to the company website. SAR expects to boost in the future its minerals and oils freight services to cover minerals, petroleum products, and petrochemicals via agreements signed with companies such as Aramco, SABIC, and Sadara.   

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News