February 23, 2024
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Saudi Arabia Signs Mou With Alstom to Boost Transport Sector

Saudi Arabia Signs Mou With Alstom to Boost Transport Sector :

Saudi Arabia Signs Mou With Alstom to Boost Transport Sector

The Saudi Arabian transport ministry has signed a Memorandum of Understanding with Alstom. Alstom is a French multinational manufacturing company that specializes in sustainable transport. The MoU is expected to boost investment in Saudi Arabia’s transport sector. Both parties also discussed the possibility of Alstom making Saudi Arabia its headquarters in the Middle East region.

The agreement is expected to increase the adoption of sustainable transport in the Saudi Arabian kingdom. More importantly, the MoU will increase transport infrastructure in the kingdom and expand Saudi Arabia’s rail lines. This agreement is in line with Saudi Arabia’s Vision 2030.

Crown Prince Mohammed bin Salman launched Vision 2030 to diversify Saudi Arabia’s economy and improve the kingdom’s competitiveness. The policy includes plans to expand Saudi Arabia’s rail line by over 10,000km. Additionally, the policy contains plans to build a metro line by 2030.

The Agreement Is Set To Boost Saudi’s Transport Sector

This metro line is expected to help Saudi Arabia meet the public demand for transportation services.

In line with Vision 2030, Prince Mohammed bin Salman launched the Saudi Arabian National Transport and Logistics Strategy in 2021. The strategy involves plans to position Saudi Arabia as a global logistics hub. The strategy detailed action plans to create a comprehensive transportation network connecting Saudi Arabia to three continents. It also featured plans to build human capital within the Transport and Logistics sector.

In recent years, the Saudi Arabian government has been keen on boosting sustainability in the region. The recent zero-carbon Neom city launch is an example of this drive. According to Crown Prince Mohammed bin Salman, the transport strategy is critical to Saudi Arabia’s economic diversification and sustainability drive. The strategy also contains action plans to launch logistics zones in Saudi Arabia, adopt advanced operating systems, and develop infrastructural projects.

One of such infrastructural projects is the Riyadh metro line. The Riyadh Metro Project is a large-scale transit system currently being constructed in Riyadh, Saudi Arabia’s capital. Alstom is heavily involved in the project. The company launched the initial dynamic tests for the metro project in 2018. Alstom also skipped the metro trains used in the project’s construction. However, the Riyadh Metro is only one of many projects. Saudi Arabia has been directing volumes of funds towards these infrastructural projects. Saudi Arabia is expected to have expended over $48 billion on transportation projects by 2024.

The Alstom-Saudi Arabia MoU will considerably strengthen Saudi Arabia’s drive to boost its transportation system.

Conclusion

Saudi Arabia’s diversification is at the forefront of the government’s plans. While Saudi Arabia has been largely dependent on oil revenues, the country is set to take a step toward reducing its carbon footprint. This MoU will help the Kingdom transition to a more sustainable transportation system.

Last Updated on 3 months by newseditor

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