Saudi Arabia Launches Ambitious Regional Transport Projects to Boost Connectivity

Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 
Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 
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Saudi Arabia Launches Ambitious Regional Transport Projects to Boost Connectivity

Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 
Saudi Minister of Transport and Logistics at the center of the attendees during the opening of the Saudi International Rail Exhibition and Conference (Asharq Al-Awsat). 

The second edition of the Saudi International Rail Exhibition and Conference has emerged as a key platform for unveiling an ambitious roadmap for both domestic expansion and regional collaboration in the transport sector. Over two days, the event gathered government officials, industry leaders, and experts from around the world to exchange insights and showcase the latest innovations in railway technology.

Saudi Minister of Transport and Logistics and Chairman of the Saudi Railway Company (SAR), Saleh bin Nasser Al-Jasser, announced that the Kingdom’s railway network now stretches over 6,000 kilometers, with further expansion planned to cover new regions in the coming years. He revealed ongoing cooperation with eight neighboring countries on joint projects to enhance land and economic connectivity, noting that the Gulf Railway Project stands as a prime example of such partnerships.

Al-Jasser emphasized that rail transport has become a cornerstone of national development, facilitating trade, expanding sustainable mobility, supporting the logistics sector, and improving road safety. He noted that SAR achieved record numbers last year, transporting more than 13 million passengers and over 28 million tons of freight and minerals across its four networks.

The minister highlighted a series of major agreements signed last year, including the purchase of 10 new trains and the launch of the region’s first luxury desert tourism service, the “Desert Train.” He also announced the Qiddiya High-Speed Rail project, a line linking King Salman International Airport, King Abdullah Financial District (KAFD), and Qiddiya City. Operating at speeds of up to 250 km/h, the train will cut travel time to 30 minutes, strengthening Riyadh’s urban mobility and regional links.

SAR CEO Dr. Bashar bin Khalid AlMalik noted that the global rail industry is expanding rapidly, with G20 countries operating over 900,000 kilometers of track, including more than 33,000 kilometers of high-speed rail. Annual global investment in rail infrastructure and operations now exceeds two trillion riyals, he added, highlighting the importance of private-sector participation alongside governments.

Saudi Arabia’s rail network exceeds 5,500 kilometers - roughly the distance from Riyadh to Madrid - underlining its strategic location linking three continents. SAR’s operations have saved over 113 million liters of fuel and reduced millions of tons of emissions, supporting the Saudi Green Initiative. By 2035, the company aims to increase freight volumes fivefold and quadruple passenger numbers.

During the ministerial session, transport ministers from Saudi Arabia, Bahrain, Jordan, and Syria stressed the strategic role of railways in driving economic growth and fostering regional integration. Al-Jasser said that 50% of the government’s transportation strategy budget is allocated to rail, and that cooperation with Gulf states aims to unify technical standards, infrastructure design, signaling systems, and operational safety. This has already led to the creation of the GCC Railway Authority.

Al-Jasser added that Saudi Arabia is working bilaterally and multilaterally with eight neighboring states to integrate networks, with projects like the India–Middle East–Europe Economic Corridor (IMEC) showcasing successful international cooperation.

Bahraini Transport Minister Sheikh Abdullah Al-Khalifa underscored the importance of the 1986 land link between Bahrain and Saudi Arabia for his country’s economy. For his part, Jordanian Transport Minister Dr. Nidal Al-Qatamin praised Saudi Arabia’s rapid rail progress under Vision 2030, noting the opportunity to connect to the Kingdom’s network at the Jordanian border.

On the sidelines of the event, Meto Trajkovski, Managing Director and Partner at Boston Consulting Group, stated that developing Gulf rail networks will not only benefit Saudi Arabia but also boost neighboring economies, positioning the region as a land bridge between Asia and Europe. He noted that rail lines have been critical to the Kingdom’s mining sector and that public–private partnerships will be essential to sustain growth in this capital-intensive industry.

 

 



Chevron Eyes Argentina, Mediterranean for Global LNG Growth, Deal with India

Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare
Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare
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Chevron Eyes Argentina, Mediterranean for Global LNG Growth, Deal with India

Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare
Freeman Shaheen, the president of Chevron Global Gas, participates in a discussion at the Gastech conference in Houston, Texas, US, September 18, 2024. REUTERS/Callaghan O'Hare

Chevron is looking to expand its global gas portfolio from Argentina to the Mediterranean to meet growing demand from buyers concerned about energy security due to the crisis in the Middle East, President of Global Gas Freeman Shaheen said.

Global gas markets have experienced two major disruptions in the past four years as the Ukraine war in 2022 and the Iran conflict this year cut off supplies from top producers Russia and Qatar and drove liquefied natural gas prices higher.

"What we're seeing from this crisis is that it just reinforces the need for diversity — diversity of supply and diversity of different contracting structures," Shaheen said, adding, "and not leaving yourselves susceptible to a spot market that's not really as liquid ⁠as crude and ⁠products."

Chevron will have about 20 million metric tons per annum of LNG supply capacity comprising 16 million tons of net gas production from its projects and 4 million tons contracted from the US Gulf Coast that commenced in February this year and will ramp up over the next few years in line with agreements.

"We're looking to continue to expand that portfolio," Shaheen said in an interview on the sidelines of the Gastech conference in Bangkok.

"There's great prospects out of ⁠Argentina with the development of crude and gas in that marketplace. The East Mediterranean is a very exciting area for us as well."

He also sees further opportunities in Australia and Africa, provided the projects offer the right capital, fiscal and regulatory terms, adding that the US-Iran war has reinforced the need for a diversified gas portfolio.

Shaheen did not elaborate on where in Africa, Australia or the eastern Mediterranean the company might expand. In June, Chevron won approval to become operator and lead gas exploration in an offshore block off Greece, expanding its presence there.

However, these opportunities have to be weighed against Venezuela, where Chevron and its partners would invest more than $7 billion to more than double oil output by 2031.

"I've been hearing that ⁠Venezuela has a lot ⁠of capital that's going to have to go that way coming up," Shaheen told Reuters.

"Everything is going to get analyzed in our project queue and it gets ranked."

Chevron already has significant operations in Australia, running the country's largest LNG project, Gorgon, and the Wheatstone project. A large portion of its Australian supply goes to Japan.

"Japan continues to be our home base, and we have nice structural opportunities into Singapore," Shaheen said, adding that China and Korea remain attractive markets.

In Singapore, Chevron inked a deal in 2024 to supply Sembcorp Industries up to 0.6 million tons per annum of LNG from 2028.

LNG buyers are also changing the way they secure supply, he said, with state-backed importers increasingly willing to sign contracts with portfolio suppliers rather than relying on government-to-government arrangements.

"I'd love to have a deal in India. It's just they're very, very headline-price driven," Shaheen said. "I think India is still evolving. There's going to be great opportunities over time."


Maersk, Hapag-Lloyd Resume Further Services Through Suez Canal

FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo
FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo
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Maersk, Hapag-Lloyd Resume Further Services Through Suez Canal

FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo
FILE PHOTO: Shipping containers sit on a Maersk vessel docked at the port of Los Angeles in Long Beach, California, US, March 10, 2026. REUTERS/Caroline Brehman/File Photo

Shipping group Maersk said on Monday it will resume four further of its container services with Germany's Hapag-Lloyd through the Suez Canal, as they gradually ⁠return to using the ⁠shortcut between Asia and Europe.

The Asia-Europe trade corridor through the Suez Canal was abandoned ⁠by most shippers earlier this decade after attacks in the Red Sea by Yemen's Houthis, forcing ships to take the much longer trip around Africa's Cape of Good Hope.

The two ⁠companies ⁠in early July and later again in August announced that they would resume some services connecting Asia, the Mediterranean and Europe through the Suez Canal.


Goldman Sachs, JP Morgan Expect September Fed Hike as Inflation Lingers

Federal Reserve building in Washington (Reuters)
Federal Reserve building in Washington (Reuters)
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Goldman Sachs, JP Morgan Expect September Fed Hike as Inflation Lingers

Federal Reserve building in Washington (Reuters)
Federal Reserve building in Washington (Reuters)

Goldman Sachs and J.P. Morgan now expect the US Federal Reserve to raise interest rates this week after a string of stronger-than-expected inflation readings challenged hopes that price pressures would continue to ease without additional policy tightening.

The Wall Street banks joined a growing number of forecasters turning more hawkish after data last week showed ‌US consumer ‌and producer prices rose more than expected in August, ‌while ⁠oil prices climbed ⁠above $100 a barrel due to renewed hostilities in the Middle East, reported Reuters.

In a note on Friday, Goldman Sachs abandoned its previous call for rates to remain unchanged and now expects a 25-basis-point increase at the US Fed's September 15-16 meeting. J.P. Morgan, meanwhile, forecasts quarter-point hikes in both September and December.

The latest data have revived concerns that progress toward the Fed's ⁠2% inflation target could stall after months of moderation.

"We ‌think that the FOMC will be ‌reluctant to surprise," Goldman Sachs economist David Mericle said.

J.P. Morgan struck a similarly ‌hawkish tone following the inflation reports.

"The week that saw rising ‌bond yields and energy prices and a firm enough set of inflation readings to make a rate hike at next week's FOMC meeting more likely than not," J.P. Morgan economists led by Michael Feroli said in a note.

The outlook ‌for further Fed tightening will be in focus this week as policymakers conclude their meeting on Wednesday, ⁠while investors ⁠also watch the Bank of Japan for policy signals.

J.P. Morgan said the latest inflation data cast doubt on a sustained disinflation trend, leading it to forecast another Fed rate hike this year and raise its estimate of the long-run policy rate to 3.25%.

Markets are pricing in an 87% chance of a quarter-point Fed rate hike this month, up from about 70% before the latest inflation data, with another increase expected in December, according to CME's FedWatch Tool.

In a separate note on Sunday, Goldman Sachs said it still expects two Fed rate cuts in 2027, though later than previously forecast, as it sees this week's expected hike as driven more by market pricing than inflation fundamentals.