Containers backlog due to the transfer of the operating contract to a new Contractor

The Saudi Railways Organization (SRO) has confirmed that the Dry Port Project in Riyadh is one of the most important projects implemented by SRO. It contributes in regulating the transport sector between the Eastern province and Riyadh. In addition to, it relieves the pressure on the motorways and reduces the maintenance costs, as well as provides transport service at affordable prices.

As for the accumulation and pile-up of containers in the dry port, the SRO explained that the reason is owing to the transfer of the contract to a new operating contractor and withdrawal of skilled workers who were running the dry port from the very beginning. The SRO, after inviting bids for the management, maintenance and operation of the Dry Port in Riyadh and its affiliates in Dammam on the basis of leasing and revenue sharing for a contract period of ten years, has awarded the new Contract to Bass International in partnership with the International posts services (IPS), which is working with Ningbo Port Company of China for the operation of Dry Port Riyadh and related works in Dammam for 10 years.

In addition to, the SRO, before the new Contractor starts the work in the dry port, has asked the previous Contractor to transfer the existing skilled worker in the project, rental of equipment for a period of three months to six months, getting the document cycle applied in the project, the computer system and some other demands and urged him to cooperate with the new contractor in all the requirements of the continuation of operating with regard to employment, equipment, or other, which contributes to the smooth transition of the obligations and ensure a smooth work on schedule as per the sublime directives confirmed the eligibility of the government to keep labor working in the continuous contracts (such as Operation & Maintenance, cleaning and catering).

To avoid any disruption in the dry port, the new contractor was instructed to sign a contract with a specialized Company to provide assistance in some work in the port. Indeed, the new contractor made a contract with IPS to provide assistance, which began work as of 29-5-1433. this will positively be reflected in the manner the port is to be operated as IPS has just secured all equipment and skilled workers to join those of the new contractor.

Meanwhile, a work team from the SRO has been assigned to closely follow up work in the port on around-the-clock basis until situation returns to normal position. This team shall undertake all the communication and coordination between relevant authorities including the Department of Customs at Dry Port Riyadh, which have done a commendable effort and contributed to the speed up of handing over the containers in recognition of the operating conditions experienced by the Dry Port and to avoid any backlog of containers.

Under the current circumstances, the SRO offers its apologies to all our valued customer, agents and brokers and expects their collaborations to overcome this problem and contribute in speeding up the pace of work in this interim period.

For comments, email at: publicrelation@saudirailways.org