Saudi Land Bridge

Talked about central America, now I shift to our region: a similar project but in less competitive terms: Saudi land bridge Rail project.

This will connect Port of dammam in Persian gulf to port of Jeddah in Red sea. its a single track railway( capable of being expanded), 950 km long and will be operated by a private company. compared to Canal case, competition environment is not that fierce here, project is in national level (optimistically regional) and no considerable effect could be foreseen on Iranian ports.

Its claimed that land bridge will save 5-6 days compared to sea transport(ships discharge and load in jeddah instead of sailing for 5 days to dammam, its very economical without considering advantage of ECONOMIES OF SCALE in sea transport). A vital concept already employed in this project is Focal point of RIYADH DRY PORT which will provide logistic platform for smooth flow of freight through land bridge.

Studying Saudi non-oil export shows main importing countries from saudi are: Persian gulf states states 33%, Asia 26% , EU and N. America 19% (year 2003) so its obviously a good idea to shift export hub from Dammam to Jeddah ( closer to 45% of overseas market) despite the fact that industrial centre of Saudi is on northern part; dammam and jubail!

Principle sources of import are oversea as well, being N. America, Asia and EU(2004).

...BUT what would be the effect on Iran?