Oxagon freight rail link design bids have advanced NEOM’s plans for a major railway connecting its Red Sea industrial port with Saudi Arabia’s national rail network. The proposed infrastructure will extend more than 400 kilometers across northwestern Saudi Arabia.
It will connect the Port of NEOM at Oxagon with Saudi Arabia Railways’ (SAR) North-South Railway. According to MEED, consultants have submitted bids for the railway’s design consultancy contract. The procurement represents an important step towards establishing direct inland freight connectivity for Oxagon.
However, NEOM must first complete technical and commercial assessments before committing to railway construction. The proposed connection also creates an opportunity to integrate the Red Sea port into established industrial freight corridors.
Oxagon freight rail link design advances towards feasibility
NEOM initially invited consultants to express interest in the proposed railway on September 14, 2026. Interested firms submitted their expressions of interest on September 16. Subsequently, NEOM issued a formal consultancy tender covering feasibility studies, concept design and route alignment.
The original tender set October 29 as the submission deadline. However, MEED subsequently reported an extension to the bidding period. Consultants have now submitted their design proposals, according to its November 2 report.
The latest procurement milestone moves the railway towards a more detailed technical assessment. Nevertheless, NEOM has not publicly disclosed the successful consultant or the number of competing bidders.
The consultancy will establish the proposed railway’s technical requirements and identify an appropriate route. Furthermore, the feasibility assessment will help determine the infrastructure requirements for connecting Oxagon with the existing national network.
The proposed route will terminate at Al-Baseeta junction in Al-Jawf Province. This connection will provide access to the North-South Railway, an established 2,750-kilometre national rail corridor.
The network primarily transports phosphate and bauxite from northern mining operations towards industrial and export facilities. Its connections include Ras Al-Khair, Jubail and Dammam, alongside branches towards Riyadh and Al-Haditha.
Consequently, the Oxagon connection could establish another freight gateway between Saudi Arabia’s Red Sea coast and inland industrial centers.
Oxagon freight rail link targets stronger port connectivity
The proposed railway addresses a significant infrastructure gap in Oxagon’s logistics network. Currently, the Port of NEOM lacks a direct railway connection to the national network.
Consequently, freight movements towards inland destinations depend on road transport or additional maritime connections. A dedicated railway could provide an alternative for moving industrial materials and containerised cargo.
Moreover, the connection could strengthen the commercial position of the Port of NEOM. The port supports Oxagon’s ambition to develop an integrated industrial and logistics centre.
The facility began operations in 2022 and currently handles approximately 250,000 twenty-foot equivalent units (TEUs) annually. NEOM plans to increase its annual handling capacity to 1.5 million TEUs by 2030.
Therefore, railway connectivity could become increasingly important as port activity and industrial production expand. It could also improve access to established supply chains serving Saudi Arabia’s eastern industrial centres.
The railway would additionally provide the North-South Railway with a connection towards the Red Sea. This could complement its existing freight connections towards Gulf coast export facilities.
Oxagon freight rail link supports wider industrial development
The railway forms part of NEOM’s broader infrastructure development programme. Oxagon occupies a strategic position within the wider NEOM development, valued at approximately $500 billion.
However, this figure represents the wider NEOM programme rather than the proposed railway. NEOM has not disclosed the freight rail project’s construction budget.
Other industrial investments reinforce the importance of developing reliable logistics infrastructure. These include the NEOM Green Hydrogen project, which involves NEOM Green Hydrogen Company, ACWA Power and Air Products.
The hydrogen facility has completed construction and entered commissioning ahead of targeted commercial operations in 2027. Meanwhile, industrial and digital infrastructure developments are expanding Oxagon’s potential cargo requirements.
Additionally, NEOM has pursued road improvements to strengthen connections between Duba and the industrial zone. These developments highlight the importance of coordinating road, port and railway infrastructure.
The next important milestone will involve completing the consultant selection process and assessing the proposed alignment. Subsequent decisions will determine the railway’s delivery strategy, construction programme and investment requirements.
Until NEOM confirms these details, the proposed 400-kilometre-plus railway remains a planned infrastructure development rather than an awarded construction project.
Saudi Arabia’s wider rail expansion also includes major passenger transport investments. In Makkah, the Kingdom is advancing the $16.5 billion Mecca Metro project, a planned 188-kilometre network designed to improve mobility for millions of Hajj and Umrah pilgrims. While the Oxagon railway will strengthen freight connectivity between the Red Sea coast and the national rail network, the Mecca Metro will address urban transport demand. Together, the projects reflect Saudi Arabia’s broader strategy to expand rail infrastructure under Vision 2030.
Project Fact Sheet
Name: Oxagon Freight Rail Link.
Location: Oxagon, northwest Saudi Arabia.
Country: Saudi Arabia.
Developer: NEOM.
Type: Freight railway infrastructure.
Estimated railway length: More than 400 kilometres.
Starting point: Port of NEOM, Oxagon.
Proposed connection: Al-Baseeta junction, Al-Jawf Province.
Connecting railway: Saudi Arabia Railways North-South Railway.
Existing connecting network length: Approximately 2,750 kilometres.
Current project stage: Design consultancy bid evaluation.
Expressions of interest issued: September 14, 2026.
Expressions of interest submitted: September 16, 2026.
Formal tender deadline: Initially October 29, 2026; subsequently extended.
Latest procurement milestone: Consultants submitted design bids, November 2, 2026.
Consultancy scope: Feasibility studies, concept design and route alignment.
Railway construction cost: Not disclosed.
Consultancy contract value: Not disclosed.
Wider NEOM development investment: Approximately US$500 billion.
Port operational commencement: 2022.
Current port handling capacity: Approximately 250,000 TEUs annually.
Target port handling capacity: 1.5 million TEUs annually by 2030.
Primary objective: Connect Oxagon’s industrial port to Saudi Arabia’s national freight railway network.
Project Team
Developer: NEOM.
Procurement authority: NEOM.
Design consultancy: To be appointed following bid evaluation.
Railway network operator: Saudi Arabia Railways (SAR).
Existing railway infrastructure: Saudi Arabia Railways North-South Railway.
Proposed railway connection: Al-Baseeta junction, Al-Jawf Province.
Port infrastructure: Port of NEOM, Oxagon.
Wider development investor: Saudi Arabia’s Public Investment Fund (PIF).
Existing integrated rail planning consultant: SYSTRA, working with Egis, Siemens, Serco and Arup on broader NEOM rail studies. These organizations are not confirmed as bidders for this freight rail consultancy.
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