China to build Saudi Arabia's Makkah railway

King Abdullah greets Chinese President Hu Jintao upon his arrival in Riyadh. (Photo by AFP/Getty Images)

China has signed an agreement with Saudi Arabia to build a US $1.78 billion (SAR6.65 billion) light rail system linking the Kingdom’s holy cities, it was announced today.

The deal was signed between Prince Miteb, minister of municipal and rural affairs, and China Railway Construction Company (CRCC) during a visit by Chinese President Hu Jintao.

The project is intended to alleviate congestion during Hajj, the annual pilgrimage of three million Muslims to Makkah, and will link the holy sites of Makkah, Mina, Arafat and Muzdalifah. It is anticipated that the railway will cut the five hour car journey to just half an hour.

Local media reported that 35% of the project’s capacity will be ready for use during Hajj 2010 (1431H) and full capacity would be achieved by Hajj 2012 (1433H).

Construction will be undertaken by China Railway Construction Corporation, together with Saudi Arabia’s Al-Rajhi construction group and a French firm, reported earlier this week to be Alstom.

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The Chinese premiere, arrived in Riyadh on Tuesday to meet with King Abdullah, as part of a three-day trip to strengthen strategic ties between the two countries. It is his second visit in three years.

The railway deal was one of five bilateral agreements that included cooperation in oil, gas and mining, health, quality inspection and standards of goods and services.

China’s economic growth has pushed up its demand for oil and raised the importance of the relationship between the two countries.

"Saudi Arabia is the biggest oil exporter to China. We value the role it plays and look forward to strengthening cooperation in this field," said a Chinese foreign ministry spokesman.

More than half of China’s oil exports come from the Gulf, mainly from Saudi Arabia, which exported 36 million tonnes of oil to China last year. Oil and its products dominate bilateral trade worth about $42 billion. Sinopec, the Chinese state-owned oil company, is negotiating a deal with Saudi Aramco to build two refineries in Saudi Arabia.