RIYADH, Jan 22: Saudi Arabia has invited the state-owned Russian Railways for talks on a contract to build the 520-km (325-mile) railway from Al Zabirah, a key mainline junction on its giant North-South railway project, to Riyadh international airport.

The contract, worth about $800 million, would include construction of bridges, camel crossings and other infrastructure to support the railway, a statement by the Russian company said.

The Russian Railways had made the offer with attractive financial terms and technical aspects that was judged most suitable among the bids, the statement added.

The contract to lay a new railway track – that will include 20 camel crossings – envisages linking King Khalid International Airport in Riyadh to the Zabirah junction in the north of the kingdom.

The rail link, one of the four sections of the 2,400-km North-South route, is intended to allow Saudi Arabia to develop phosphate and bauxite deposits near its northern border. The North-South route will cost $2bn and is scheduled for completion in 2011.

The North-South railway project is being built to move minerals from the interior to an industrial complex to be built on the Gulf coast.

It is one of several projects planned to expand the kingdom’s rail network. The Saudi Landbridge and Mecca-Medina Rail Link (MMRL) projects are expected to transform the existing rail network in the kingdom into a world-class freight and passenger system that will bring the entire country closer.

Saudi Landbridge includes a 950-km line between capital Riyadh and the Red Sea port of Jeddah, as well as a 115-km link between the industrial city of Jubail and Dammam, the oil hub on the Gulf coast.

Tenders for Landbridge from four groups of Saudi and international firms were submitted in November, and the Saudi Rail Organisation (SRO) is to announce the winning bid in February.