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Saudi Arabia plans $4.5 bln railway investment

RIYADH: Saudi Arabia plans to invest 17 billion riyals ($4.5 billion) on a nationwide rail network in the next five years, a newspaper reported on Sunday.

The Saudi Gazette quoted a source at the General Organisation for Railways as saying the various railway projects would cover the entire kingdom during the 2000-2005 development plan.

"He observed that all these projects needed financing and that their success will depend on the extent of the private sector's financial support," the paper said.

It quoted the source as saying there were plenty of opportunities for private investment in the railway plans.

Saudi Arabia last month did not renew a Japanese oil concession in a neutral zone the kingdom shares with Kuwait. Talks between the kingdom and Japan were deadlocked after Saudi Arabia insisted that Japan build and operate a $2 billion mining railway in the country.-Reuters