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Minister of Transport and SAR chairman Saleh Bin Nasser Al Jasser
The merger between Saudi Railway Co. (SAR) and Saudi Railways Organization (SRO) is an important step in privatizing some of the transport sector works, Saudi Press Agency reported, citing Minister of Transport and SAR chairman Saleh Bin Nasser Al Jasser.
The merger will contribute to raising efficiency and flexibility and will enhance the effectiveness of services in order to achieve an optimal investment of resources, Al Jasser said.
It will open up broader development horizons in operation and investment in a way that will reflect positively on the services provided to the beneficiaries of passengers, institutions, and various entities.
This will positively reflect on the national economy, enhance the capabilities of local content, and increase job opportunities in the transport sector, the minister added.
SAR CEO Bashar Al Malik confirmed that the merger will enhance SAR’s capabilities and open up prospects for local and foreign investors in diverse fields, including manufacturing, operations, implementation, research and development, and others.
It will also enhance the local content in these projects with the active participation of the private sector, he added.
The CEO also added that the company's top priority will be to develop services, raise customer satisfaction rates, unify and accelerate procedures, and raise efficiency in all railway-related works across the Kingdom.
Work is underway to harmonize operational processes until all phases of the merger are completed, he added.
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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