U.S.-based railroad freight car equipment maker The Greenbrier Companies, Inc. and Saudi Railway Company (SAR) have signed an agreement under which the parties will invest and generate investments totalling 1 billion Saudi riyals ($270 million) in the Saudi rail industry.
Greenbrier and SAR intend to establish a joint venture company (JV) in Saudi Arabia to execute railway projects and supply railcars for the profitable growth of the Saudi freight rail market. The JV will invest in assets and infrastructure required to expand profitable rail service offerings to the Saudi market.
Based on achieving identified milestones, Greenbrier will provide the JV 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 the JV locomotives, rail access and service schedules to facilitate line haul services.
Greenbrier will facilitate raising an additional $170 million in collaboration with SAR and international public and private investment communities. Together through the JV, Greenbrier and SAR will establish a new multi-modal business centred on creating and maximizing existing and new rail routes for freight movement throughout the Kingdom and, ultimately, the Gulf Cooperation Council region.