The deal with Saudi Basic Industries Corp. (SABIC) to transfer polymers is a first step, according to Bader Al-Atni, Senior Vice President of Shipping at Saudi Railways Co. (SAR).
Al-Atni indicated that work is ongoing to fully connect other SABIC products and plants in Al Jubail.
The agreement will alter supply chain patterns, with trains serving as a catalyst for one of the most important local products and industries. Railway transportation provides a competitive advantage by lowering long-term costs and providing a safe and environmentally friendly mode of transportation, with carbon emissions reduced by 19% and fuel consumption reduced by 17%.
Carbon emissions reduced by 19%, and fuel consumption reduced by 17%
There are agreements with several companies, including Saudi Arabian Mining Co. (Maaden), Sadara Chemical Co., and ARASCO, as well as agreements for cement and grain transportation, Al-Atni said.
SABIC has struck a 25-year agreement with SAR to carry polymers straight from the manufacturers to ships by way of the railway network, according to data published on Argaam.