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Saudi Binladin Group has been awarded a contract to link Saudi Arabia's Jubail petrochemical hub with the new minerals industry city of Ras al-Khair

Saudi-railThe Saudi Binladin Group has been awarded the contract to build a railway between Jubail and Ras al-Khair in Saudi Arabia. (Image source: ActiveSteve/Flickr)

The Saudi Arabian construction firm will build an 85km railway worth US$177 million between the two sites on the Gulf coast, according to Rumaih Al Rumaih, chief executive of Saudi Railway Co.

The development will come as a welcome boost for the country's rail industry after it recently witnessed the removal of the general president of the Saudi Railways Organisation, Abdulaziz bin Mohammed Al-Hokail, who was sacked by the government after a train carrying 332 passengers derailed en route from Dammam to Riyadh.

Investigation later revealed that broken communication and control cables were among the causes of the derailment in which 35 passengers were injured.