Saudi Arabia issues Design Tender for $7 Billion Landbridge Railway Project

Riyadh, Saudi Arabia (Urban Transport News): In a significant step toward realizing one of the Middle East’s most ambitious infrastructure projects, Saudi Arabia Railways (SAR) has launched a tender for lead design consultancy services on the long-anticipated Saudi Landbridge railway. The contract, open for bids until 15 May 2025, will cover concept design, preliminary works, and the Issued for Construction (IFC) design phase of the network.

This move breathes new life into a transformative project that has been in the planning pipeline for nearly two decades. With an estimated total investment of $7 billion, the Landbridge is poised to redefine freight transport across the kingdom, creating a 1,500-kilometre rail corridor linking the Red Sea with the Arabian Gulf.

A Strategic Freight Link from Coast to Coast

At the heart of the Landbridge project lies a 900-kilometre mainline connecting Riyadh to Jeddah, extending to King Abdullah Port on the Red Sea. This direct east-west corridor will offer the first dedicated freight railway between the kingdom’s two coasts, allowing cargo to move swiftly between the Red Sea port of Jeddah and Dammam on the Gulf Coast, bypassing the congested and lengthy sea route around the Arabian Peninsula.

The project will also include upgrades to the existing Riyadh–Dammam line, construction of a bypass around Riyadh, and a new rail link from King Abdullah Port to Yanbu, further integrating Saudi Arabia’s port and logistics infrastructure. In total, the Landbridge will stretch over 1,500 kilometres, with a mix of new construction and upgrades to existing lines.

Though freight remains the primary focus, the Landbridge will also accommodate passenger services, reflecting the kingdom’s broader strategy to enhance domestic mobility while modernizing its transport ecosystem.

Economic Vision and Geopolitical Connectivity

Beyond transport efficiency, the Landbridge is a strategic cornerstone of Saudi Arabia’s Vision 2030, the national economic transformation plan aimed at reducing dependency on oil and establishing the country as a regional logistics powerhouse. The railway will connect key logistics hubs including Jeddah, Riyadh, Dammam, King Khalid Airport, Jubail, King Abdullah Port, and Yanbu, bolstering multimodal freight movement across air, sea, and land.

Officials believe the project will improve the speed and cost-efficiency of freight movement across the kingdom, positioning Saudi Arabia as a gateway for trade between Asia, Africa, and Europe. The rail line is expected to facilitate global supply chain flows, supporting the growth of industries, ports, and free zones throughout the country.

Shifting from PPP to Direct Development?

Initially proposed in 2004, the Landbridge has faced multiple delays over the years due to rights-of-way disputes, route alignment challenges, and concerns over cost feasibility. The project was shelved in 2010, briefly revived a year later, and then largely remained dormant—until recently.

In recent years, SAR had been engaged in negotiations with Chinese-backed investors for a public-private partnership (PPP) model to finance and develop the network. However, the issuance of this design tender directly by SAR suggests a possible shift in approach. While a PPP structure remains on the table, Riyadh appears to be exploring alternative delivery options, potentially advancing parts of the project through public funding or hybrid models.

In December 2023, project momentum picked up when a joint venture of Hill International (USA), Italferr (Italy), and Sener (Spain) was awarded the project management services contract. Their involvement signaled a renewed commitment to advancing the Landbridge through formal planning and coordination.

Next Steps and Timeline

With the design consultancy tender now issued, SAR is expected to award the contract later this year. Based on typical infrastructure development timelines, construction tenders could be issued by mid-2026, pending the completion of the design phase and confirmation of financing strategies.

Should it move forward, the Landbridge will not only be one of the largest rail projects in the Middle East, but also among the most globally significant in scale and ambition. It promises to redefine internal and regional logistics, stimulate economic growth, and solidify Saudi Arabia’s role as a pivotal connector in global trade routes.

As the 15 May deadline approaches, attention now turns to which firms will secure the design role—and whether this long-awaited project will finally transition from vision to reality.