Saudi Railways Signs Deals to Boost Freight Capacity

On September 23, 2026, Saudi Arabia Railways signed a series of agreements aimed at expanding freight capacity and modernizing railway systems across the Kingdom, marking a significant step in strengthening the national rail network.

Under the deals, the operator will purchase 33 new freight locomotives from Progress Rail to support the Phosphate 3 expansion project, alongside the design, manufacture, and supply of 782 new freight cars from Greenbrier for the same project. Both agreements target higher capacity for the Kingdom's growing mineral transport demands.

A five-year maintenance and technical-support contract valued at €22 million was signed with Alstom to service the North Freight fleet operating on the North–South corridor. Separately, Hitachi Rail secured a contract to upgrade signaling infrastructure for the Al-Mashaaer Al-Mugaddassah Metro Project in Makkah, which serves pilgrims during Hajj and Umrah seasons.

The operator also signed a memorandum of understanding with AstraG Teknoloji to explore cooperation on railway technology and digital solutions.

Why it matters

The agreements point to continued investment in freight logistics and passenger-serving rail systems, which underpin trade flows and the movement of pilgrims. Expanded capacity on the phosphate line supports the mining and export sectors, while upgraded signaling in Makkah aims to improve reliability for one of the Kingdom's busiest transit systems.

No passenger ticket prices, freight tariffs, or government fees were announced as part of these agreements, and the total combined value of the contracts was not disclosed.

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