Railway infrastructure: Key market research findings
- Increased adoption of PPP in railway projects
- Increase in exports through railways
Technavio has released a new market research report on the railway infrastructure spending market in Saudi Arabia, which is expected to grow at a CAGR of around 8% by 2020. Currently, the government plans to expand the rail network for better connectivity across some of the major cities and religious places in Saudi Arabia. The government is putting more emphasis on the development of railway freight traffic, which is attracting huge investments and funding. The construction of a high-speed rail (HSR) network is gaining importance in Saudi Arabia with the focus on improving railway connectivity to major cities such as Riyadh and Jeddah
The new industry research report from Technavio discusses in detail the key drivers and trends responsible for the growth of this market and its sub-segments.
“Several railway projects are opting for alternative means of funding, including private finance, bond issues, and public-private partnerships (PPPs). The PPP rail projects are gaining prominence in the country, due to their benefits such as efficiency in the construction process with technology adoption and faster completion of projects under expected budget,” says Anju Ajaykumar, Lead Analyst, Heavy Industry, Technavio Research
In addition to the development of new railway lines and trains, Saudi Arabia has also been re-furbishing its current fleet of trains, to maintain a long life span, without compromising on safety. The country has been sourcing essential components from other countries on a regular basis to have a smooth operating fleet of trains. Moreover, the government has been predominantly focusing on expanding investments in railway infrastructure to develop religious tourism in Mecca and Medina.
The key players in the railway infrastructure spending market in Saudi Arabia are Al Mobty Contracting, Arabian Railway, MODON and Masar. The construction companies compete for railway infrastructure projects to earn long-term source of revenue. Huge initial investments deter the entry of new players in the market.
A more detailed analysis is available in the Technavio report, Railway Infrastructure Spending Market in Saudi Arabia 2016-2020.
We can customize reports by other regions and specific segments upon request.
Other related reports:
- Global Energy Management in Railways 2016-2020
- Railway Infrastructure Spending Market in Saudi Arabia 2015-2019
- Railway Infrastructure Spending Market in China 2015-2019
- Railway Infrastructure Spending Market in Brazil 2015-2019
- Global Smart Railways System Market 2015-2019
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