Announcement of new partnership to bid for rail projects worth over Dhs 2.94 billion
The UAE-based Advance Rail Group (ARG) has announced a new partnership with a major Saudi Arabian contractor to bid for more than three billion Saudi riyals (Dhs2.94 billion) worth of future rail opportunities in the Kingdom.
ARG and Saudi Arabia-based Al Rashid Trading and Contracting Company (RTCC) have signed an agreement to strategically bid for railway projects that are part of Saudi Railway Company’s (SAR) rail network.
ARG General Manager Warwick Georgeson said the partnership would be mutually beneficial for both companies. “This strategic joint venture will ensure both parties capitalise on each other’s strengths,” he said. “ARG’s decision to partner with RTCC was founded on their strong history in the Kingdom and their successful completion of several high profile projects in the region.”
SAR has already prequalified the consortium for several railway opportunities in the Kingdom.
“This type of allegiance supports the Kingdom’s drive for international partners. It allows international companies such as ARG to share our skills and to assist in the exciting development of the Kingdom,” Mr Georgeson said.
“We have a strong belief in supporting local partnerships and utilising the skills and abilities of local employees and suppliers so our philosophy fits well with this partnership.” RTCC is currently completing a contract in Saudi Arabia to construct 817 kilometres of SAR’s 2,400 kilometre North-South Railway.
ARG was formed in October 2010, when the Habtoor Leighton Group (HLG) joined forces with leading Australian rail contractor John Holland, to pursue an expected US$75 billion (Dhs275.5 billion) in rail projects in the GCC region.
HLG is a leading multi-disciplined international contractor in the MENA region and John Holland is Australia’s largest rail construction and maintenance contractor and the operator of a number of major railway networks in Australia.
HLG CEO and Managing Director and ARG shareholder Laurie Voyer welcomed the partnership as a positive step for the group’s operations in Saudi Arabia.
“This joint venture with RTCC to bid for some of these key railway opportunities will complement our already established business in KSA,” he said.
“We have identified the Kingdom as a strategic geographic region for our business and the market there is robust and sustainable with predominantly government-funded infrastructure works.
He added: “I welcome this partnership and look forward to building a strong and successful relationship with RTCC.”