The Saudi Arabian Railway (SAR) has completed 1,050km of the 1,486km mineral railway linking the northern Jelamaid region with Ras Azzour near the industrial port city of Jubail.
The north-south railway is scheduled to be operational by the end of the year.
SAR is expected to have agreed a deal, worth SR278m ($74.13m), with India-based firm Rites to operate the railway.
Deputy chief executive officer Romaih bin Muhammad Al Romaih said the contract with the firm will be valid until the end of 2013.
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