Sadara Chemical, Saudi Arabian Railway plans new rail network

27 December 2011 04:00  [Source: ICIS news]

Sadara Chemical, Saudi Arabian Railway plans new rail networkSINGAPORE (ICIS)--Sadara Chemical and the Saudi Arabian Railway Company (SAR) are planning to build a railway network at Jubail Industrial City for the transportation of Sadara’s products to nearby port facilities, Sadara Chemical said late on Monday.

Sadara Chemical Company, a joint venture between Saudi Aramco and US-based Dow Chemical, is currently building a world-scale integrated chemicals complex in Jubail Industrial City II, in the eastern province of Saudi Arabia.

The planned railway project is part of a Memorandum of Understanding (MOU) signed last month between SAR and Sadara Chemical which aims to study, design, and build a railway network to link Sadara’s complex with export facilities at King Fahd Industrial Port and Jubail Commercial Port through trains and freight cars, Sadara Chemical said in a statement.

Construction designs for the new railway network are expected to be completed in 2012 and the railway is expected to start operating in 2014, the company said.

The railway system is expected to eliminate the need to use more than 500 trucks per day to transport products from Sadara’s manufacturing plants to King Fahd Industrial Port and Jubail Commercial Port, according to Ali Abu Ali, Chief Executive Officer of Sadara Chemical.

The new railway project is the first of its kind in the Middle East in terms of transporting chemical products, and the first of its kind in Saudi Arabia, according to Sadara Chemical.

The first production units at Sadara’s new complex are expected to come on line in the second half of 2015. All units are expected to be up and running in 2016.

The complex will produce products such as polyurethanes (isocyanates, polyether polyols), propylene oxide (PO), propylene glycol (PG), elastomers, linear low density polyethylene (LLDPE), low density polyethylene (LDPE), glycol ethers and amines.

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By: Nurluqman Suratman



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