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Mitsui Wins $763 Million Order for Saudi Railway

Reuters
Monday, 2 Apr 2007 | 10:41 PM ET

Mitsui & Co., Japan's second-biggest trading house, said on Tuesday it had won a 90 billion yen ($763 million) order together with a group of companies for a railway construction project in Saudi Arabia.

Shares in Mitsui rose after the announcement.

Mitsui said it would book the project revenues of 90 billion yen in installments over the next three to four years.

Mitsui said it is teaming up with Al Rashid Trading & Contracting Co. of Saudi Arabia and Australia's Barclay Mowlem to build an 818 km (508 miles) portion of the North-South Railway, which is being built to move mineral traffic from Saudi Arabia's interior to an industrial complex to be built on the Gulf coast.

A Mitsui spokesman said the trading house aims to expand its railway operations in the Middle East as demand for railway transportation is growing.

Mitsui said in February it was considering taking part in a $7 billion petrochemical complex in Saudi Arabia planned by Saudi International Petrochemical.

The Saudi government also plans to build a high-speed passenger line to the holy city of Mecca.

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