Greenbrier and Saudi Railway Company (SAR) have signed an agreement under which the two will generate investments totalling $270 million in Saudi Arabia’s rail industry.
Greenbrier and SAR intend to establish a joint venture (JV) to execute rail projects and supply railcars for the country’s freight rail market.
Together the two parties will establish a new multi-modal business centred on creating new rail routes for freight movement throughout the Kingdom and, ultimately, the Gulf Cooperation Council region.
Greenbrier will provide the JV with up to $100 million in new railcars, lift equipment and other terminal investment necessary to place railcars in revenue service, and will operate intermodal and other freight terminals.
SAR will provide locomotives, rail access and service schedules to facilitate line haul services.
Greenbrier will raise an additional $170 million in collaboration with SAR and international public and private investment communities.
The American transport company will have a first right to manufacture and provide railcars for the JV’s fleet of railcars and establish a Saudi-based facility.
Greenbrier president William A. Furman said: “The JV will benefit the people of Saudi Arabia by enhancing the capacity and efficiency of freight and logistics systems in the Kingdom while contributing to local job growth, economic development and national defence mobility.
“As the Kingdom advances economic diversification to improve the life of its people, it will significantly grow its transportation infrastructure.”