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Landbridge Heavy Rail Network Expansion
Supply Chain & Logistics Management Firm
Kingdom of Saudi Arabia

This estimated US $6 billion heavy rail network expansion project will extend the existing rail network between the capital city of Riyadh and Dammam to the city of Jeddah for both freight and passenger rail service.

Phil Helmes conducting site review in Saudi Arabia.

Challenge
A supply-chain and logistics management firm based in Kuwait needed assistance retaining the appropriate expertise and generating a business plan to submit an RFP response to the Saudi Railways Organization (SRO).

SRO was awarding a 50-year concession to the winning consortium that will finance, design, construct, and operate this new rail network.



Solution
The supply chain & logistics management firm retained Helmes&Co to provide advisory and strategic program planning services during the tender preparation, including the formation of a consortium of qualified professional resources. Advisory services provided included:

  • Implementing a proprietary portal-based risk management and planning system to identify and monitor program risks and appropriate action items
  • Developing a business plan framework
  • Developing the initial consortium structure and working relationships in advance of the release of the RFP
  • Assisting in the development of a memorandum of understanding and a consortium participation agreement
  • Developing a management team with the authorization to commit resources and direct the overall effort
  • Determining roles and responsibilities for each consortium member. Recommended augmentation with additional members and resources as deemed necessary
  • Managing the tender preparation schedule to ensure project participants met schedule demands and commitments
  • Coordinating financial, banking, and legal strategies for construction financing and long-term operational requirements

Value
The consortium's tender proposal was evaluated by the SRO and the consortium was short-listed. The SRO has since cancelled this tender process, and in lieu of a build-own-operate-transfer (BOOT) delivery method, the project will be state-owned and financed by the Saudi government's Public Investment Fund.

Note: To ensure client confidentiality is maintained, certain project details have been sanitized.