A consortium led by Serco Group, the international service company, has been awarded a contract by the Saudi Railway Company (SAR) to provide management and technical support for its operations on the North South Railway (NSR).

The five-year contract worth £120 million ($184.6 million) is Serco's first major rail contract in Saudi Arabia, said a statement from the company.

The consortium also includes Britain's Network Rail Consulting and Freightliner Group, a leading rail freight operator in the UK with operations across Europe and Australia.

As per the deal, Serco will operate as prime contractor and provide technical support for passenger operations, while Freightliner Group will take lead responsibility for providing freight expertise and support and Network Rail Consulting will provide infrastructure technical support.

The consortium will use its international expertise in rail operations to develop and implement operating procedures and systems, provide management and technical assistance, and deliver training and expertise to support the development of capabilities within SAR and its personnel, said the statement.

The NSR, at over 2,750 km in length, is one of the largest rail projects currently being developed worldwide. The overall rail network that SAR is responsible for constructing and operating is more than 4,500 km.

SAR chief executive Dr Rumaih Al Rumaih said: "Our vision is to implement world-class railway practices and deliver the highest standard of technical, commercial and operational service excellence to all customers, as well as to ensure the transfer of technical and operating knowledge and skills, including training, to provide long-term employment opportunities for Saudis, to operate the rail network and develop the railway industry in Saudi Arabia."

"After an extensive exercise supported by international business consultants AT Kearney, the UK consortium successfully won the tender process against strong international competition, and we look forward to working with them to achieve SAR's strategic plans in a five-year commercial partnership," he added.

Serco Middle East CEO David Greer, said the contract was its first major transport win in Saudi Arabia, a country which is central to the group's growth plans in the Middle East.

Serco, he stated, had many successful years of managing and providing operational support for high performing rail services internationally, in the Middle East, Australia and in the UK.

"We look forward to using these capabilities and experience, working with our consortium partners, to support the Saudi Railways in ensuring safe, effective and reliable services on the NSR in the kingdom," added Greer.

Group CEO Rupert Soames said: "I am delighted that Serco have won this important contract, which is completely aligned with our strategy of building an international public service business specialising in transport, justice and immigration, defence, citizen services and healthcare."

"It also reinforces the success we have had in other rail projects in Dubai and Qatar, and positions us as the leading operator in rail in the Middle East,"  he added.-TradeArabia News Service