From Dubai to Barcelona : The Mediterranean and the Gulf countries meet

1. Saudi Arabia Logistics & Transportation
Sector
MENA BUSINESS INVEST. GROUP

2. Index
 Saudí Arabia
 Logistics & Transportation Sector
 Rail
 Ports
 Airports
 Road transportation
 Business opportunities
 Ongoing Rail projects MENA Region
 How to invest in the Saudi market

3. Saudi Arabia
- Located strategically between 3 continents (Asia, Africa, and
Europe).
- The Transport and Logistics (T&L) Sector in Saudi is supporting a
population of 31.7 millions (2015), and within only 3 hours flying
radius, the T&L sector can serve for both cargo and passengers
more than 250 million habitants.

4. Saudi Arabia
- Government Mission is to position Saudi Arabia among the top ten
most competitive nations through the creation of a pro-business
environment, a Knowledge-based society, and by developing
world-class “Economic Cities” and Free zones.
- KSA is planning to create alternatives for the Oil Incomes in order
to don’t be dependent on Oil. A plan is going to be implemented
starting on 2016 to achieve this target. This plan includes
privatization of Hospitals, Airports, Ports, Highways, Universities,
etc., and the creation of an institutional investment fund around 2
Billion USD to generate alternative incomes for KSA in addition to
the Oil incomes.

5. Transport
- Saudi Arabia boasts a wide transport network with a particular
strength in road and airport transportation.
- Road penetration, for example, is ~9,600km per 1,000 people,
which is 70% higher than peer group (i.e. Turkey, Malaysia and
Indonesia). Quality of infrastructure is also solid, with Saudi Arabia
ranking 17th in the WEF infrastructure quality score. Driven by
economic and population growth as well as rapid urbanization, the
Kingdom is now investing into a massive expansion of its urban
transport systems (metros and buses) as well as inter-urban
(freight and high speed railways). In parallel, the Kingdom pursues
a strategic goal of increasing infrastructure quality by 300% by
2024.

6. King Abdullah
Economic City
(KEAC)
Prince
AbdulAziz bin
Mousaed
Economic City
(PABMEC)
Knowledge
Economic City
(KEC)
Jazan
Economic City
(JEC)
Superficie: 168 Mn m2 156 Mn m2 4,8 Mn m2 100 Mn m2
Inversión: US$27 billion US$8 billion US$7 billion US$27 billion
Población: 2 Mn 300.000 150.000 300.000
Localizaci
ón:
Beside Red Sea
Between Meca
And Medina
Region
Center/north
Of Hail.
Planned to be
the
transportation
Hub.
At the east of
Medina
60 km. At the
North of Jizan
City
Economics Cities - Saudi

7. Saudi Arabia
- As a result of the economic growth and the development of ECs,
annual cargo volumes will triple from 300 million tons in 2005 to
around 900 million tons in 2020.
- 60% of the growth is due to basic demand growth, 30% due to
the development of ECs, and 10% due to the successful leverage
of launch pads on the Red Sea.

8. Saudi Arabia
- The international share of cargo movements will increase to more
than 60% in 2020 with a shift to relatively more trade with Middle
East and Africa. Domestic volumes will remain to be predominantly
transported by Road and Rail, while international volumes will be
transported mainly by sea.

9. Saudi Arabia - Vision
- The massive expansion of transport infrastructure has already
begun with Metro and bus projects in Riyadh and Makkah, rail
projects such as the High-speed Haramain Rail and a massive
increase in school bus transport.

10. Transport - Vision
- Over the next 10 years (2015-2024), spend on rail, metro and bus
projects will reach ~$141bn.
- Saudi Arabia is looking for investors and suppliers to develop its
transport infrastructure in a long-term partnership approach. It
aims to not only develop its infrastructure, but also its transport
industry through value chain integration, attraction and training of
skilled workers and coordination across the various projects.

11. Saudi Arabia
- An Attractive and Large Transportation & Logistics Market
Large market, with huge growth potential:
- Large Land Mass
- Strategic Location
- Rich with Natural Resources
- Fast Population Growth
- Large Consumer Market
- Commitment of the Saudi Government to develop the
Transportation Sector.
- The Transportation Sector is one of the main focus areas of
Saudi Arabia and it is believed to be the Kingdom’s second
most added value sector after energy.

12. Transport & Logistic Sector
Rail
- The existing railway network of Saudi Arabia connects the port of
Dammam to the capital Riyadh. This infrastructure of the current
railway network comprises two mainlines and one branch line with
a combined length of 1,018 km. The two mainlines 1 and 2 run in
parallel between Hofuf and Dammam, but are operated as
independent single lines.

13. Transport & Logistic Sector
Rail
- Saudi Arabia’s North-South Railway Project, a multibillion Saudi
Riyals initiatives to develop a 2,300 kilometer north–south railway
system that will link the northern mineral mines of Al Jalamid
(phosphates) and Az Zabirah (bauxite) to processing facilities in
Ras Al Khair on the Arabian Gulf. The railroad will also be extended
to serve general freight and passenger along the line from
Northern region to Riyadh through Hail City.
- The Saudi Government has established a 100% Government
owned company with the intention of privatizing Operations and
Maintenance.

14. Transport & Logistic Sector
Rail
- Saudi Landbridge Railway (Delayed): the project will involve
construction and operation of 945 km of new standard-gauge track
from Riyadh to Jeddah as well as a new 115-kilometre spur from
Dammam port to the industrial city of Jubail. Expansion will
transform the Kingdom's existing network into one of the world's
most important strategic freight links connecting the port cities of
Jeddah, Dammam and Jubail via Riyadh's inland dry port. Delivery
time for containers tracked between Dammam and Jeddah will be
less than 18-48 hours compared to up to eight days journey by
sea around Ras AlMandab from the Red Sea to Arabian Gulf.

15. Transport & Logistic Sector
Rail
- The maintenance for urban transit and freight/passenger rail
projects until 2024 will create an annual replacement demand for
wheelsets of USD 140 million. The market could be even bigger if
the wheelset manufacturer can also supply the local assembly of
metro and regional trains. Opportunity: Manufacture of wheels and
wheelsets. The steel capabilities of the local supplier base can be
leveraged to form the manufacturing, but a JV with an established
supplier, e.g. Bonatrans, is a prerequisite for technology transfer
and the acquisition of relevant capabilities. The opportunity
requires greenfield investment in dedicated facilities (e.g., for
casting rail wheels) and can be realized in 2-3 years. Initial
investment1: USD150-180 million.

16. Transport & Logistic Sector
Rail
- Haramain High Speed Rail (HHR): Saudi Railway Organization
(SRO) is developing this project to connect the Two Holy cities of
Makkah and Medina through Jeddah and King Abdullah conomic
City (KAEC) in Rabigh. Project cost more than SR 28 BN. The route
for HHR project and the locations for 5 stations in Makkah,
Jeddah, Madinah and Rabigh have already been finalized. Phase 1
of project is under construction.The project is designed to operate
passenger trains with a speed of over 300 km per hour, reducing
travel time between Jeddah and Makkah to 30 minutes and
between Jeddah and Madinah to two hours.

17. Transport & Logistic Sector
Rail Electrification System
- Saudi Arabia’s planned metro, light rail, mixed use and high-speed
rail projects will require an estimated USD 1.8 billion investment
into electrification. This includes poles and components of catenary
systems both for mainline overhead and third-rail for metro
projects: wires, third rail, surge arresters, capacitors, catenary, etc.

18. Transport & Logistic Sector
Rail Electrification System
- Opportunity: This is an opportunity for leading suppliers of
catenary systems, such as ABB, AEG and APS Electronic, to
establish a footprint in Saudi Arabia with export potential to the
entire GCC region, as well as for local manufacturers of electric
equipment through a JV with established players to step up and
produce more valuable products. The opportunity will require
greenfield investment and can be realized in a timeframe of 2-3
years. Profile: Leading suppliers of catenary systems. Initial
investment: USD100-130 million

19. Transport & Logistic Sector
Rail – Concrete Sleepers and Slab Track
- The planned metro projects in Jeddah, Mecca, Medina and
Dammam, as well as the Saudi-Bahrain railway, the Jeddah
commuter rail, the Saudi Landbridge, and the GCC railway will
create an estimated USD 3.7 billion opportunity for concrete
sleepers and slab track.
- This opportunity represents ~ 1/3 of the overall rail systems
opportunity and a large share could be captured locally. Existing
local suppliers of concrete products include Bina Precast, PCM
Strescon, and Al Mobty

20. Transport & Logistic Sector
Rail – Concrete Sleepers and Slab Track
- Opportunity: Supply pre-fabricated concrete slab tracks and pre-
stressed concrete sleepers to a contractor. A strategic JV with an
established multinational manufacturer may be required to unlock
value by vertically integrating the local supply base.
- This opportunity has been identified as a high-potential
opportunity for the first wave of projects. Profile: Pre-fabricated
element manufacturers demonstrating excellent quality and
precision. Initial investment: USD 670-820 million.

21. Transport & Logistic Sector
Rail Track Construction
- The planned metro projects in Jeddah, Medina, Mecca and
Dammam and additional commuter and mixed-use rail
infrastructures will create a rail track construction opportunity of
USD 2.2 billion. About 75% of this market value could be captured
locally. Existing local supplier include Al Ayuni Investment &
Contracting, Al Arrab Contracting and Al Rajhi Construction.

22. Transport & Logistic Sector
Rail Track Construction
- Opportunity: Provide ballasted and ballastless configurations
(including earthworks), rent required machinery, and conduct
track-related works, such as laying down, tamping and gridding
the tracks, throughout the railway track construction phase.
- Invest in and build the capabilities of local construction companies,
particularly with regard to specific technical requirements, such as
metro and high-speed line projects. Initial investment: USD 70-90
million.

23. Transport & Logistic Sector
Sea Transport and Port Sector:
- Saudi Arabia has the largest port network in the Middle East. Saudi
Ports Authority supervises development, management and
operation of the eight major seaports located on the two coasts of
Saudi Arabia. These ports have together 183 berths, 137 of them
in the six commercial ports and 46 in the two industrial ports.

24. Transport & Logistic Sector
Sea Transport and Port Sector:
- The eight ports are:
1. Jeddah Islamic Port (JIP)
2. King Abdul Aziz Port Dammam
3. King Fahd Industrial Port Jubail
4. Jubail Commercial Port
5. King Fahd Industrial Port Yanbu
6. Yanbu Commercial Port
7. Jizan Port
8. Dhiba Port

25. Transport & Logistic Sector
Sea Transport and Port Sector:
- Currently, 3 ports are under development is Saudi Arabia, Ras Al
Kair on the Gulf and two other ports inside the Economic Cities;
King Abdullah and Jazan Economic Cities. Saudi Ports have
become major contributors to Saudi economy (95% of cargo trade
are through Ports) and a link between the national and
international economy.

26. Transport & Logistic Sector
Air Transport Sector:
- Currently, 27 airports are being operated by the General Authority
of Civil Aviation (GACA), 23 domestic airports, and four
International Airports (King Khaled International Airport Riyadh,
King Abdulaziz International Airport Jeddah, King Fahd
International Airport Dammam, and Prince Mohammed
International Airport in Medina. Jeddah & Riyadh Airports account
for ~ 75% of traffic.

27. Transport & Logistic Sector
Air Transport Sector:
- GACA has introduced the Public Private Partnership (PPP) model to
the newly developed airports within the country; the First Private
International Airport is currently being developed in Prince
Abdulaziz Bin Musaed Economic City (PABMEC) in Hail province;
while the second project is the development of Prince Mohammed
International Airport in Medina and the new airport in Riyadh.

28. Transport & Logistic Sector
Air Transport Sector:
- Major air aviation developments are taking place; air operators are
sought to drive expansions to KSA’s air transport infrastructure.
- For example, significant upgrades are currently underway at
Medina Airport, a new Cargo Village is being planned for Dammam
airport. As part of promoting the private sector, the first planned
private airport is currently in progress in Prince Abdul Aziz bin
Musa’ed Economic City.

29. Transport & Logistic Sector
Road Transport Sector:
- The KSA is served by an extensive road network with a total length
of 97,000 km. The network consists of two components. The first
comprises the inter-city roads whose lengths is more than 55,000
km of paved roads under authority of the Ministry of Transport,
with expressways and main roads connecting most populated
nodes in the network.
- The other component covers the urban roads which are 42,000 km
long and are under the authority of the Ministry of Municipal and
Rural Affairs. The inter-city roads constitute 55% of the entire road
network, while urban roads constitute 45%.

30. Transport & Logistic Sector
Bus Transport
- Urban and inter-urban bus transit projects until 2024 create a bus
service operation and maintenance opportunity of USD 1.9 billion.
Existing bus operators include Hafil and Saptco.
- Other passenger transportation companies, such as Saudi Airlines,
and car/track maintenance companies, including leading bus OEM
dealer networks, can be employed to explore potential synergies.

31. Transport & Logistic Sector
Bus Transport
- Opportunity: Provide bus maintenance services, passenger
operations (including training transport professionals, e.g. bus
drivers) and other passenger services, (including bus terminal and
operations management, catering).
- Most of these opportunities can be captured by the existing local
bus service providers and bus maintenance companies/workshops.
This has been identified as a high-potential opportunity for the first
wave of projects.

32. Business/Investment Opportunities
Investment Opportunities in the Railway Sector
1. Saudi Land-bridge Build, Operation and Management (Delayed).
2. Haramain High Speed Rail - Operation and Management.
3. North-South Project Operation and Management.
4. Riyadh Dammam High speed rail.

33. Business/Investment Opportunities
Investment Opportunities in Public Mass Transit:
1. Riyadh Light Rail
2. Makkah Light Rail
3. Jeddah Light Rail
4. Madinah Light Rail
5. Dammam Light Rail

34. Business/Investment Opportunities
Investment Opportunities in Maritime Transport Sector
Saudi Ports Authority (SPA)
1. Developing and Administration of a Logistics Park Adjacent Yanbu
Commercial Port
2. Operation of the Passenger Terminal in Yanbu Commercial Port
3. BOT of a 2nd Container Terminal in Jubail Commercial Port
4. BOT of a 4th Container Terminal in Jeddah Islamic Port
5. Upgrade and Operation of the Jeddah Shipyard
6. Operation of the Passenger Terminal in Jeddah Islamic Port
7. BOT of a 2nd Container Terminal in King Abdulaziz Port Dammam
8. Upgrade and Operation of the Dammam Shipyard
9. Development and Administration of 3 Logistics Parks adjacent King
Abdulaziz Port Dammam

35. Business/Investment Opportunities
Investment Opportunities in the Air Transport Sector
1. Domestic Low Cost Carrier (LCC)
2. Hajj Charter carrier
3. Logistics Cargo Distribution Hub (e.g. at DMM airport)
4. Recreational Facilities at Int’l Airports
5. Commercial Retailers at Major Airports
6. Privatization of Dammam Airport (KFIA)
7. Privatization of Saudi's Catering Unit
8. Fuel Farm Operator
9. Aircraft Leasing Company
10. Internationalization of Madinah Airport
11. Privatization of Hail Airport (HAS)
12. Airport City projects.

36. Business/Investment Opportunities
Investment Opportunities in Logistical Services
1. Set of warehouses & Bulk storage Facilities
2. Packaging and Construction Material Distribution Service Providers
3. Logistics and Transportation Centers
4. Manufacturing & Distribution of Vehicle Spare Parts & Tires.
5. Logistics Management Consulting Firm
6. Specialized Logistics Vehicle Maintenance Services Firm
7. Perishable Warehousing and Logistics Services

37. Business/Investment Opportunities
Investment Opportunities in Economic Cities:
1. Intermodal transport Terminals and Transit Systems.
2. Implementation of modern logistics Centers and Service facilities.
3. Developing Aerospace Manufacturing and Distribution Facilities.
4. Industrial and Logistical Park Development and Operations in KAEC
& JEC.
5. Develop & Operate Training Academies in Rail Operations, Bus
Systems, Aerospace Managerial, Industrial, Technical fields, Port
Operations.

38. Business/Investment Opportunities
King Abdullah Port (KAP) inside King Abdullah Economic City (KAEC)
1. Shipyard / Ship Repair
2. Bunkering
3. Emergency Response
4. Insurance / Reinsurance
5. Nautical / Institute

39. Business/Investment Opportunities
Jazan Economic City (JEC) Port
1. Third Party Logistics Services
2. Maritime Training Institute
3. Container Terminal
4. General Cargo / Dry Bulk Terminal
5. Maritime Services
6. Ship Repair / Construction / Recycling
7. Tank Farm and Bunkering
8. Warehousing / Regional Distribution Centers
9. Container Depot
10. Container Freight Station

40. Major rail projects underway in the Mena
Region
Project Country Value($m) Main contractors Due
Riyadh Metro: Lines and 2 Saudi Arabia 9,450 Bechtel/Siemens/Almabani/CCC JV 2020
Harmain high-Speed rail netwaork: phase 2 Saudi Arabia 8,396
OHL/Adif/Renfe/Talgo/Indra/Dimetronic/Cobra/I
nabensa/Capasa/Imathia/Consultrans/Ineco/Sho
ula/Rosan JV
2018
Riyadh Metro: Lines 4,5 and 6 Saudi Arabia 7,820
FCC/Freyssinet/Alstom/Samsung/Strukton/Setec/
Typsa JV
2020
Riyadh Metro : Line 3 Saudi Arabia 5,942
Ansaldo STS/Impregilo/Larsen &
Toubro/Nesma&Partners/Bombardier JV
2020
Tehran Metro : Line 6 Iran 4,000 Ahab Construction Company 2017
Tehran Metro : Line 7 Iran 4,000 Sepasad Engineering Company 2016
Doha Metro: Gold Line (Tunneling Works) Qatar 3,300
Aktor/Yapi Merkezi/Larsen&Toubro/STFA/Al-
Jaber Engineering JV
2018

41. Major rail projects underway in the Mena
Region
Harmain high-speed rail network; phase 1 ,
package 1 (civil works)
Saudi Arabia 2,871 Al-Rajhi Holding Group 2018
Lusail LightRail: phase 2 Qatar 2,722
Aistom/Qatar Diar VINCI Construction
(QDVC) JV
2019
Doha Metro: Green Line (tunneling and main
stations works)
Qatar 2,520
Saudi Binladin Group/HBK Contracting
Company/Porr Solutions JV
2018
Red Line North (tunneling works) Qatar 2,184
Impregilo/SK
Engineering&Construction/Galfar al-Misnad
Engineering&Contracting JV
2016
Oued Tlelat to Akid Abbes:phase 1 Algeria 1,815
Rizzani de Eccher/Societa Italiana
perCondotte d'Accqua JV
2016

42. Major rail projects underway in the Mena
Region
Oued Tlelat to akid Abbes: Phase 2 Algeria 1,633 Groupe ETRHB Haddad/FCC JV 2016
Baghdad Monorail: Phase 1 Iraq 1,500 Alstom 2019
Doha Metro : Red Line South (tunneling
works)
Qatar 1,500
QDVC/GS Engineering&Construction/Al-
Darwish Engineering JV
2018
Arak to Kermanashah to khosravi Iran 1,500 Iran Ministry of Roads&Urban Development 2017
Haramain high-speed rail network: phase
1,package 2 (contract 1)
Saudi Arabia 1,300 Groupe ETRHB Haddad/FCC JV 2018
Harmain high-speed rail network:phase 1,
package 2 (contract 1)
Saudi Arabia 1,287 Saudi Binladin Group/Yapi Merrkezi JV 2018
Harmain high-speed rail network:phase 1,
package 2 (contract 2)
Saudi Arabia 1,267 Saudi Oger/El-Seif JV 2018

43. Major rail projects underway in the Mena
Region
Lusail Light Rail: Phase 1 Qatar 1,200 QDVC
Tehran to Mashad rail electrification Iran 1,112
Mapna Group/China General Technology
(Group) Holding/SU Power JV
2017
Doha Metro: Msheireb station Qatar 1,100
Samsung C&T/OHL/Qatar Building Company
JV
2019
Laghouat to Djelfa railway Algeria 1,100 Cosider Groupe 2016
Education City station Qatar 1,100
Samsung C&T/OHL/Qatar Building Company
JV
2019
Djelfa to Boughezoul railway Algeria 800 Cosider/SAPTA JV 2017
Touggourt to Haoud el-Hamra railway Algeria 700 GCB 2016
Al-Sufouh tramway 2 (Phase 1) UAE 682 Astom/Basix JV, Serco

44. How to invest in KSA
1- Analyze the local market and the potential business opportunity
2- Define the implementation strategy
3- Define the services / products to develop in the Gulf Area
4- Define the country where to start
5- Find the correct local partner. Not a must but is important to be
synergy with the sector.
6- Dedicate team with experience, knowledge and know how in order
to execute the implementation of the project

45. Contact
Hussein Balaghi
General Manager
Mobile: +34 639 30 37 29
Saudi Mobile: +966 500110208
Email: hbalaghi@mena-big.com
MENA Business Investment Group, S.L.
Address: Street Felipe de Paz, nº39, 1º, 08028, Barcelona, Spain
Tel: +34 93 449 71 11
www.mena-big.com

46. Transport – GDP - Statistics

47. Transport – GDP - Statistics