Saudi Railway Company (SAR) and Sadara Chemical Company have signed an agreement to transport liquid, solid products and containers as a primary means of transport for the company. The transport services will start in the second half of 2021, when the railway project in Jubail Industrial City will be completed.
The 25-year agreement includes the provisioning of two trips per day from Sadara Chemical Campus to King Fahd Industrial Port, and three trips to Jubail Commercial Port.
The companies expect that the annual freight volume will reach 125,000 containers.
“This is a unique agreement, the first of its kind in the region involving rail transportation of liquid chemicals and similar products. The agreement signifies a new milestone for Sadara and highlights our commitment to embracing new and more efficient ways of doing business,” said CEO of Sadara Chemical Company, Faisal Al-Faqeer.
Under the agreement, Sadara will transport its products from the chemical complex located in Jubail Industrial City to the export facilities at King Fahd Industrial Port and Jubail Commercial Port, while SAR committed to provide transport services using its specialised fleet to ensure rapid and safe delivery.
For the chemical company, the railway services are more efficient, cheaper and safer than transporting its products by trucks. In addition, the projects will bring benefits to the environment. It reduces the carbon emissions emitted from daily use of road transport services used to transport its products from the chemical complex to Jubail’s two ports.
It expected that the railway services will replace approximately 200,000 truckloads of Sadara products annually to Jubail’s ports. In addition, the railway transport services will reduce the carbon emissions by 76%, shifting the road-to-rail traffic. This agreement contributes to the achievement of Sadara Company demand in transporting its products in a safe and reliable way meeting the requirements of sectors compatible with the objectives of the National Industrial Development and Logistics Program (NIDLP), CEO of SAR, Bashar bin Khalid Al-Malik explained.
Last year, Saudi Railway Company has removed more than 600,000 trucks from the road network.
In Jubail Industrial City II, in the Eastern Province of Saudi Arabia, Sadara is building the world’s largest chemical complex built in a single phase. Its 6-km2 site features 26 integrated, world-scale manufacturing plants that will produce a total of over 3 million metric tonnes of high value-added plastics and chemical products each year.