Railroad Projects Kingdom of Saudi Arabia Mr Andre Barbour Business Development Manager Australian Trade Commission - Jeddah Kingdom of Saudi Arabia AUSRAIL 2003 Sydney, Australia

Mineral Railway Proposed Mapping

Why Saudi Arabia?  1,500 km of mineral railroad projects for 1st phase  1,800 km of passenger and cargo railroad across the country  Future links to a regional railroad system  Economically stable  World Bank Involvement  Saudi Ministry of Finance Involvement  Synergies between Australia (Alice Spring Darwin) and Saudi Arabia  An accessible geological & mineral database

A Market Worth A Second Look!  Mining Sector to become the most important sector after Oil, Gas & Petrochemicals  Saudi Arabia is home to largest mineral deposits in the GCC  Saudi Arabia is positioning itself to become a leading player and exporter in the world fertiliser and aluminium market –  Saudi Arabia WTO entry is expected soon

 Opportunity Rich & Cash Rich  Population of 23 Million and annual growth 3.8%  20% of world oil deposits  2.2 Million KM 2  Non availability of railroad except Riyadh Dammam  27 airports among which 3 International  Full in country dependability on airline …

Recent Developments  The Government has established a new FDI framework in April KSA is a much more business friendly than in the past!  New reliance on the private sector to develop extensive metals and minerals wealth…  Austrade anticipates that the new Mining Investment Code & Mining Investment Regulations will be out by the end of 2003.

Local Players  A new mining company MA’ADEN was established by Royals Decree in major focus base metals and minerals  Saudi Railways Organization (SRO) to privatize + announce the Riyadh Jeddah Railroad Project  Mineral Railroad concession awarded to Ma’Aden & Saudi Oger (JV)  New private sector players are now entering this sector

Local Players  Saudi Arabian Mining Company (Ma’Aden)  Saudi Oger  Al Motabaqani  Saudi Canadian Company  New Red Sea Mining Company  S audi Bin Ladin Group - PMC  Ahmed A. Al Hamdan – Finance & Management  Other l ocal companies interested in partnering opportunities

Some Areas of Opportunity  Consultancy  Management  Financing  Mapping  Commissioning  Construction  Operational  Security  Weighting Systems  Loading Platforms  Rails  Wagons  Ticketing

Some Areas of Opportunity Phase 2 - Pilgrims Railroad Jeddah – Mecca – Medina (Saudi Arabia)  2.5 M Pilgrims are to be transported by railroad from Jeddah to Mecca and Medina during pilgrims period  Project requires fast but highly secured rail system enabling large passenger’s luggage load  Operational all year round linking Jeddah-Mecca-Medina

Some Areas of Opportunity Phase 3 – Passengers and cargo railroad Medina - Yanbu - Rabegh - Jeddah  Passengers and cargo railroad for the western province  Operational all year round

Project’s Opportunities Phase 1 Mineral Railway Al Jalamid Riyadh & Dammam Jubail Phase 2 SRO Passengers and Cargo Railway Riyadh Jeddah Phase 3 Pilgrims Railroad Medina-Jeddah-Mecca Phase 4 Medina-Yanbu + Tabuk-Abha Existing Railroad

Best Practices to Enter the Saudi Market  Evaluate a pool of prospective local business partners  Appoint 1 local business partner with good industry connections with Ma’Aden – Saudi Oger – Ministry of Finance & Ministry of Petroleum & Minerals  Visit the market and hand deliver your company’s capabilities

Best Practices to Enter the Saudi Market  Pre-qualify your company with the industry players  Visit the market on regular basis and provide presentations focused on the project’s benefits, creating jobs for Saudis and training Saudis on the job  Ensure to provide sound maintenance and after sales services

Opportunities Not/Not To Be Missed! Now lets turn to what is perhaps the most profitable business opportunity for Australia’s Railway & Mining sector...

Emerging Opportunities - Facts  T he KSA holds some of the largest phosphate deposits in the world. Located mainly in the North & North West regions of the country  T he impressive Al - Jalamid deposits are estimated to hold several hundred million tonnes. According to Maaden, this deposit will allow for the economic exploitation of phosphates for around a 20 year mining operation  The major constraint for developing these deposits was the lack of railway infrastructure

Emerging Opportunities - Facts Phosphates & Fertilisers  Maaden & Saudi Oger (one of the largest companies in KSA) established a 50/50 JV company to develop the Northern Mineral Rail Link.  The JV will comprise a USD2.4bn holding Co integrating mining, railway as well as downstream phosphate projects.

Emerging Opportunities - Conclusions  This 1,500 km rail link will cost between USD bn & also open access to the 250 million tonne bauxite – Koalin deposit at Az Zabirah.  Australia cannot afford to miss these & other business opportunities in the Kingdom of Saudi Arabia…It is one of the few good news spots in the global railway and mining sectors! Austrade’s offices in Jeddah & Riyadh are Austrade’s offices in Jeddah & Riyadh are well placed to help you capture business... well placed to help you capture business...