Oxagon freight rail connection plans are advancing as NEOM seeks consultants for a major new freight railway in northwest Saudi Arabia. The proposed project would connect the Port of NEOM at Oxagon with Saudi Arabia Railways’ North-South Railway at Al-Baseeta junction.
The planned line would exceed 400 kilometers and could establish a direct rail route between the Red Sea port and Saudi Arabia’s interior. NEOM issued an expression of interest on September 14, 2026, covering feasibility studies, and concept design and route alignment. Consultants must submit their proposals by September 16.
The rail project forms part of NEOM’s wider $500bn development program. However, NEOM has not disclosed a construction cost for the proposed railway. Therefore, the $500bn figure relates to the wider NEOM development rather than this specific rail connection.
Oxagon freight rail connection targets national freight integration
The proposed railway would terminate at Al-Baseeta junction in Al-Jawf Province. That location already connects with Saudi Arabia’s 2,750-kilometre North-South Railway network.
The North-South Railway primarily transports minerals from northern Saudi Arabia toward industrial and export facilities. Its network serves mineral operations and connects with major industrial centers on the Gulf coast.
Additionally, the network provides branches toward Riyadh and Al-Haditha near the Jordanian border. Consequently, the proposed Oxagon connection could extend freight access between the Red Sea and these established corridors.
Currently, the Port of NEOM lacks a direct railway connection with the rest of Saudi Arabia. Cargo therefore depends on road transport or additional maritime movements.
The proposed connection could change that logistics structure. It would give freight operators a direct rail route between Oxagon and the Kingdom’s wider rail network.
Oxagon freight rail connection supports expanding port operations
The Port of NEOM has operated since 2022 and serves the industrial activities planned at Oxagon. The facility currently handles about 250,000 TEUs annually. NEOM plans to increase capacity to 1.5 million TEUs by 2030.
Therefore, additional inland transport capacity could become increasingly important as port activity expands. Rail freight could also reduce dependence on long-distance road movements from the Red Sea.
NEOM has already committed significant investment to expanding the port. In 2024, it awarded a contract worth approximately $1 billion for Terminal 1. El-Seif Engineering Contracting, Hassan Allam Construction and China Harbour Engineering Company formed the joint venture.
Meanwhile, Duba port expansion has progressed through two construction phases. Boskalis, Besix and Modern Building Leaders handled the first phase. Deme and Archirodon handled the second phase.
Oxagon also supports major industrial construction projects. Construction of the $8.5 billion NEOM Green Hydrogen project recently reached completion. The facility has entered commissioning ahead of targeted commercial operations in 2027.
The hydrogen project will produce up to 600 tones of green hydrogen daily. Renewable power capacity supporting the facility totals about 4GW.
Meanwhile, Humain and DataVolt have started construction of an artificial intelligence data center at Oxagon.
The proposed railway could therefore strengthen logistics supporting several industrial developments. However, consultants must first establish its technical and commercial feasibility.
Saudi Arabia is also advancing major passenger rail infrastructure alongside its freight ambitions. The planned Mecca Metro, valued at up to $16.5 billion, is progressing through design procurement for a 188km network. The project will include 89 stations and four lines, with the first phase prioritizing Lines B and C. The development highlights the Kingdom’s broader push to expand rail infrastructure for both passenger mobility and economic connectivity.
Project Fact Sheet
Project: Proposed Oxagon freight rail connection.
Location: Oxagon and Port of NEOM, northwest Saudi Arabia.
Country: Saudi Arabia.
Planned length: More than 400 kilometers.
Railway connection: Al-Baseeta junction.
Connecting network: Saudi Arabia Railways North-South Railway.
Planning stage: Expression of interest for consultancy services.
EoI issued: September 14, 2026.
Submission deadline: September 16, 2026.
Consultancy scope: Feasibility studies, concept design and route alignment.
Railway construction cost: Not disclosed.
Wider NEOM investment: Approximately $500bn.
Port operation: Operational since 2022.
Current port throughput: About 250,000 TEUs annually.
Planned port capacity: 1.5 million TEUs by 2030.
Strategic purpose: Connect Oxagon freight with Saudi Arabia’s national rail network.
Project Team
Developer: NEOM.
Rail network operator: Saudi Arabia Railways (SAR).
Proposed rail connection point: Al-Baseeta junction, Al-Jawf Province.
Port: Port of NEOM at Oxagon.
Terminal 1 contractors: El-Seif Engineering Contracting, Hassan Allam Construction and China Harbour Engineering Company.
First Duba expansion contractors: Boskalis, Besix and Modern Building Leaders.
Second Duba expansion contractors: Deme and Archirodon.
Green hydrogen project partners: NEOM Green Hydrogen Company, ACWA Power and Air Products.
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