Spain’s CAF Group announced on Monday that it has been awarded a €200 million ($220 million) five-year service contract by Saudi Arabia Railways (SAR) to provide maintenance and technical support of the Saudi operator's CAF-supplied train fleet.

The railway equipment company said in a press statement that the contract covers trains operating on the North-South line, which connects the capital city of Riyadh to Qurayyat on the Jordanian border, and the East-West line, which connects Riyadh to Dammam.

Both lines extend for more than 1,700 kilometres.

The statement said both companies have signed an agreement to establish Engineering Excellence Centre to train SAR staff to carry out maintenance work on the units and adapt the Saudi operator’s facilities for the overhaul of the trains.

CAF will modify workshops for bogie and axle maintenance, changing rolling gear, and fit out specific areas to overhaul engines and pneumatic components under the agreement, the statement noted.

The company will also sign strategic agreements with local universities and technical centres to conduct research work and improve railway competences and expertise in the region.

The scope of the contract also includes implementing SAR's ‘Digital Hub Centre, as a benchmark in the Gulf region for train digitalisation with the aim of developing digital systems and tools for CAF-supplied fleet.

(Writing by SA Kader; Editing by Anoop Menon)

(anoop.menon@lseg.com)