Nts 2030

National Transport Strategy 2030
Final Document v.10

October 26, 2017
Contents
▪ Context and Aspirations

▪ NTS 2030
▪ Future Transport Sector Governance
▪ General Transport Masterplan
1
Contents

▪ NTS 2030
2
The Ministry of Transport and affiliates oversee, own, and manage core parts of the
Kingdom’s multi-modal transport network
Ministry of Transportation
Sector oversight
Mode Dept. of
regulators Roads
Dept. of
Asset owners
Roads
Private Dept. of
Operators
& private operators
Operators Roads
Air Sea Rail Road
SOURCE: Team analysis 3

However, a number of transport assets remain outside of the direct purview
of the Ministry and its affiliates
Not covered by MoT/affiliates mandate and key strategies Partially2 covered
Saudi Aramco Security apparatus (i.e. MoMRA1 MoMRA

• Pipelines MoDA, MoI) • Intra-city municipal • Metros
• All other transport • All transport assets e.g. roads • Buses
assets e.g. – Private roads • Taxis
– Private roads – Airports
• Public transport
– Ports
– Airports
1 Municipality transport assets planning and strategy is not covered in the NTS
2 From a regulatory angle only
SOURCE : Team analysis 4
The Ministry identified a set of aspirations for the sector and set out to develop the
National Transportation Strategy (NTS) 2030; a key tool to achieve them
Aspirations
Enhance the transport sector’s performance
and ensure it is a key enabler of Vision 2030
LPI1 49 25
Heighten the sector’s performance through National

increasing integration across different modes Transportation
at the assets level and improving interfaces Strategy
2030
12 New logistic hubs
Enhance the sector’s health to ensure a

sustainable delivery of aspired performance
in coordination with all affiliates
GEI2 80 20
1 Logistic Performance Index | 2 Government Effectiveness Index
SOURCE: MoT ToR; HEM discussions 5
National Transport Strategy, approach – Sources of insight
Transport Entities Key Industrial Players Documents Reviewed

6 working teams with weekly meetings interactions with key industrial +30 masterplans and academic papers
+20 stakeholders
people directly involved in strategy
+30 development +15 surveys filled out for data collection 10 Strategy Documents
Public Sector Entities Countries Benchmarked

meetings with various public sector countries benchmarked for
+20 entities 16 governance, organizational structure,
operating models and KPIs
13 entities contributed to data collection
6
National Transport Strategy 2030 approach
Activities
1 Mission & vision

▪ Mission and Vision of MoT will remain unchanged and will not be part of the project efforts.
3 Outcomes
2 Objectives ▪ Definition and alignment on the relevant KPIs to measure
▪ Definition of MoT objectives on the basis of Vision success
2030 targets, and other entities’ existing strategies ▪ Syndication and alignment on the targets to be reached
within the proposed time horizon
4 Strategic initiatives
▪ Definition of the initiatives MoT should undertake to overcome the transport sector challenges and deliver its objectives
▪ Harmonization and alignment of the other entities’ initiatives including creation of overall transport sector master-plan
5 Prioritization of Mode-Specific Initiatives

▪ Identification of the high impact mode specific initiatives that support the defined strategic objectives
▪ Development of program charters to detail responsibility, activities, resources and expected benefit for each program
6 Funding, Investment and Capital plan

▪ High-level assessment of the budget needed for the strategic initiatives along with the capital deployment
plan and prioritized programs
▪ Estimate of potential impact of PSP as alternative forms of financing
SOURCE: McK Infrastructure practice, best practice case studies; team analysis 7
Contents

▪ NTS 2030
– Objectives and KPIs
– Strategic Initiatives
– Prioritization of Mode-Specific Initiatives
– Funding, Investment and Capital Plan
– Initiative Implementation Schedule
9
NTS 2030 objectives will help shape the future direction of the overall
integrated transport sector
Approach
▪ Define the sector integrated objectives in
Mission & accordance with Vision 2030, while building
vision on the NTS 2011, and the NTP
▪ Define key outcomes (i.e. KPIs and KPTs) for
the sector integrated objectives
Objectives ▪ Syndicate NTS2030 proposed objectives and

outcomes with all affiliates
▪ Analyze and address potential gaps between
affiliates’ objectives and NTS 2030 objectives
Strategic initiatives ▪ Align changes / additions to existing entities’
objectives with working teams
▪ Define KPIs and KPTs for each affiliate, in
Initiative Prioritization cooperation with them and McK experts
▪ Align and syndicate entities’ finalized
objectives, KPIs and KPTs, with entities’
leadership
Funding, investment and capital plan
Vision 2030 set heightened aspirations for the transport sector across four goals
Transform KSA into a logistics hub Enhance liveability across KSA
To raise our global ranking in the Logistics To have three Saudi cities be recognized in the
Performance Index from 49 to 25 and ensure top-ranked 100 cities in the world
the Kingdom is a regional leader
To increase our capacity to welcome Umrah To increase the average life expectancy from 74
visitors from 8 million to 30 million every year years to 80 years
Enhance fiscal sustainability Improve public entities performance
To increase non-oil government revenue from To raise our ranking in the Government
SAR 163 billion to SAR 1 Trillion Effectiveness Index, from 80 to 20
11
11
Nine performance and health objectives for the integrated transport sector, drawing
from Vision 2030 aspirations
Performance Objectives Health Objectives
Improve public entities performance
Transforming KSA 1 Ensure efficient and effective internal (within KSA)

into a logistics hub and external (internationally) links to priority
population and value chain centres
2 Minimize the rate of transportation accidents and

fatality and create the basis for a safety-oriented 7 Ensure appropriate 8 Build a collaborative, 9 Create an external
culture sector governance, high-performing, oriented
adequate operating and customer- organization capable
Enhance livability 3 Improve urban mobility, including reduce models and oriented of monitoring and
across KSA congestion supporting organization selectively adopting
regulations technological
4 Minimize the sectors negative impact on the changes for the
environment; in particular reduce energy
benefit of the sector
consumption
5 Optimize transport assets’ TCO through effective

1
delivery of new assets and efficient use and

Enhance fiscal maintenance of existing ones
sustainability
6 Increase private sector participation in delivering
and operating transport assets
1 Total cost of ownership

SOURCE: NTP; Team analysis 12
Key outcomes defined across each performance objective; key performance indicators
Performance objectives Target metric Rationale
1 Ensure efficient and effective internal (within ▪ International Logistics ▪ Internationally recognized metric to measure ability of a
KSA) and external (internationally) links to priority Performance Index (LPI) score national logistics system to handle goods/people flows
population and value chain centres (2015 rank) efficiently and effectively
2 Minimize the rate of transportation accidents ▪ Fatalities / injuries per 100,000 ▪ International metric used to evaluate road safety
and fatality and create the basis for a safety- residents ▪ Critical for KSA given state of road safety compared to other
oriented culture means of transport
3 Improve urban mobility, including reduce ▪ City congestion level (hrs spent ▪ Global metric to measure ability of an urban road system to
congestion in congestion)1 effectively cope with traffic demand
4 Minimize the sectors negative impact on the ▪ Transport sector energy ▪ Internationally recognized metric to measure energy efficiency
environment; in particular reduce energy consumption: Tons of oil across a country’s transport system (blended for people and
consumption equivalent per capita goods)
5 Optimize transport assets’ TCO1 through ▪ % of project w/ cost overruns ▪ Global metric that measures an entity’s project management
effective delivery of new assets and efficient use ▪ % of projects delayed by >20% excellence and capacity
and maintenance of existing ones
6 Increase private sector participation in delivering ▪ % private sector participation in ▪ Measures the ability of the transport sector to attract private
and operating transport assets development & operation3 investments and reduce fiscal burden on government
1 INRIX index: measures the number of annual peak hours spent in congestion 2 Maintenance cost are calculated per km of total rail stock
3 Covers participation in new projects only, and sets mode-specific targets as well
SOURCE: NTP: WEF: Team analysis 13
Key outcomes defined across each performance objective; Targets (KPTs) set for each
KPI over the next 15 years
Targets
Performance objectives Target metric Baseline 2020 2030 Illustration of benefits if KPT achieved in 2030
1 Ensure efficient and effective internal ▪ International Logistics 3.16 (52) 3.38 (38) 3.70 (25) Improving LPI to 3.70 can potentially almost double current
(within KSA) and external (internationally) Performance Index (LPI) score GDP per capita
links to priority population and value chain (2015 rank)
centres
2 Minimize the rate of transportation ▪ Fatalities / injuries per 100,000 26 20 8 Reducing road fatalities to 8 per 100,000 inhabitants could
accidents and fatality and create the basis residents reduce associated costs by ~SAR17bn2
for a safety-oriented culture
3 Improve urban mobility, including reduce ▪ City congestion level (hrs 23.5 15 10 A congestion level of 10 hours per year in peak congestion
congestion spent in congestion)1 could put main Saudi cities in the top quartiles globally
4 Minimize the sectors negative impact on ▪ Transport sector energy 1.42 1.32 1.02 Reduction in energy consumption per capita can save up
the environment; in particular reduce consumption: Tons of oil to 88m barrels of oil per year4 for international export
energy consumption equivalent per capita
5 Optimize transport assets’ TCO through ▪ % of project w/ cost overruns TBD 50% 20% Improving projects delays and overruns, have a direct
effective delivery of new assets and ▪ % of projects delayed by 60% 50% 20% effect on reducing the total cost of ownership
efficient use and maintenance of existing >20%
ones
6 Increase private sector participation in ▪ % private sector participation 4% 10% 16% Increasing Private Sector Participation can reduce
delivering and operating transport assets in development & operation3 government spend on Infrastructure and transport by SAR
8bn annually
1 For the five main cities across the Kingdom 2 Assuming SAR3.4mn per road fatality 3 Covers participation in new projects only, and sets mode-specific targets as well
4 (1 ton of oil equivalent = 7.33 barrels), assuming current population of 29.9m inhabitant
Specific objectives have been identified for each MoT affiliate based on NTS 2030
and the affiliate own strategic outlook
Ministry’s affiliate
A MoT Roads
B PTA
C SAR
NTS 2030
Objectives D SRO
E SEAPA
F GACA

A Objectives for each MoT affiliate based on NTS 2030 and own strategic outlook
– MoT Roads
Objectives Final MoT Roads Objectives
Regional logistical hub Rd1 Ensure efficient and effective internal (within KSA) and external (internationally) links to priority population and value
chain centres
Performance objectives
Livable cities Rd2 Minimize the rate of transportation accidents and fatality and create the basis for a safety-oriented culture
Rd3 Improve urban mobility, including reduce congestion
Rd4 Minimize the sector’s negative impact on the environment; in particular reduce energy consumption
Fiscal sustainability Rd5 Optimize transport assets’ total cost of ownership through effective delivery of new assets and efficient use and
maintenance of existing ones
Rd6 Increase private sector participation in delivering and operating transport assets
Rd7 Ensure appropriate sector governance, adequate operating models and supporting regulations
Governance, operating
Health objectives
models and regulations Rd8 Build a collaborative, high-performing, and customer-oriented organization
Future Rd9 Create an external-oriented organization capable of monitoring and selectively adopting technological changes for the
proofing
16
A A full set of outcomes has been defined for each transport organization –
MoT Roads KPIs/KPTs (1/7)
Objectives MoT objectives KPIs Proposed Targets Benchmarks
Regional ▪ Ensure efficient and ▪ Roads Density-Total ▪ 6.01 0.6

logistical effective internal Extension of
(within KSA) and expressway- km/ 2.4
hub
external (interna- 1000 sq km 3.8
tionally) links to
priority population 6.0
and value chain 6.1
centers
8.2
▪ Road Availability-km
of roads/1,000,000 34
population 61
240
410
770
860
▪ HCM Level of ▪ 100%

Service- % of roads
at level C or above
1 Target is to maintain the current level of roads density focusing on maintenance and upgrades when necessary
SOURCE: CIA World Factbook, Local Transport Entities 17
Livable ▪ Minimize the rate of ▪ Road Fatality- ▪ 20 by 2020 (NTP 5.4

Cities transportation fatalities per 100,000 Target)
accidents and population ▪ 15 by 2025 6.0
fatality and create ▪ 8 by 2030 8.9
the basis for a
safety-oriented 10.6
culture 2 10.9
World Avg. 17.3
27.4
▪ % of Highways and ▪ 70% of highways ▪ Netherlands currently has 99% of its

Dual Carriageways by 2022 national roads at 3 stars or above
along main corridors ▪ 70% of dual ▪ England has a target of 90% 3 stars or
with IRAP rating of 3 carriageways by above by 2020
stars or above1 2025
▪ 100% by 2030
▪ Sweden aims for better than 3 stars
for 75% of roads by 2020 and 100%
by 2025
▪ Queensland, Australia has a target of
85% at 3 star or better by 2025
1 World Bank currently ongoing pilot project to assess IRAP rating for 1500 km of roads. Preliminary findings show 65% of roads rated 3 star or above
SOURCE: WHO Global Safety Report, IRAP Vaccines for Roads Report 18
Livable Cities ▪ Improve urban ▪ Congestion- Increase ▪ 20% London 40

mobility, including in total travel time New 35
reduce congestion when compared to a York
free-flow situation Dubai 29
Kuwait 28
Riyadh 27
Jeddah 27
▪ Minimize the sectors ▪ % of recycled ▪ New regulation ▪ Ontario allows up to 30% recycled
negative impact on materials used in for min amount of material replacement for road surfaces
the environment; in road construction, by recycled materials and up to 100% replacement for
particular reduce total volume by 2020 subgrades
energy consumption ▪ 30% by 2025 ▪ 27 States have allow up to 25%
replacement of recycled materials in
road construction
▪ Tasmania, Queensland and NSW allow
roads containing up to 50% recycled
material
▪ % of inter-city petrol ▪ 15% by 2025
stations that contain ▪ 50% by 2030
electric vehicle
charging points
SOURCE: INRIX Database, Press Search, Transport Entity Websites 19

Fiscal ▪ Realize maximum ▪ Reduction in ▪ Elimination of ▪ Based on specific context for MoT and
Sustain- return on assets maintenance backlog by 2020 its vision and Mandate
ability including total cost backlog
of ownership
optimization ▪ % of projects ▪ 60% by 2020
completed within ▪ 80% by 2030
scheduled time
▪ % of projects ▪ 60% by 2020

completed within ▪ 80% by 2030
budget
▪ Maintenance cost ▪ 601 126

per lane-km-’000
SAR/lane-km 123
OECD 90
75
66
60
Non-
58
OECD
1 Number to be escalated by inflation YoY starting 2019

SOURCE: Expert Interviews, World Bank; Transport Agencies; Press Search 20
Fiscal ▪ Realize maximum ▪ Annual CAPEX ▪ 200012

OECD 6,938
Sustain- return on assets construction cost,
ability including total cost ‘000 SAR/lane-km
of ownership 5,435
optimization Non-
5,344
OECD
3,000
1,850
▪ Increase private ▪ Percentage of ▪ TBD ▪ Based on specific context for MoT and
sector participation private investment its vision and Mandate
in delivering and out of total
operating transport investment
assets
▪ Number of projects ▪ 4 by 2020 ▪ Based on specific context for MoT and

in the private sector ▪ TBD by 2030 its vision and Mandate
available pipeline
1 Focus is to maintain approximately current level of Capex cost
2 Number should be escalated by inflation YoY starting 2019
SOURCE: Expert Interviews 21
Gover- ▪ Build a collab- ▪ Employee Satis- ▪ Top Quartile for ▪ Global Public Sector Top Quartile- 60
nance,
orative, high- faction Index-OHI public sector ▪ Infrastructure Top Quartile- 66
performing, and institutions ▪ Saudi Arabia Top Quartile- 62
operating service-oriented ▪ User Satisfaction ▪ 80%
models and organization Rate-proportion of
reg-ulations high and good sat-
isfaction scores from
organization- based
on MoT created
survey for G2G and
G2B relations
▪ User Satisfaction ▪ 80%
Rate-proportion of
high and good sat-
isfaction scores from
organization- based
on MoT created
survey for end users
▪ Comfort- ▪ 80% of Roads at 0.7-1.2
International IRI of 1.5 or below 0.8-1.2
Roughness Index- by 2030 1.4
Minimum rating of 1.8
1.9
highways in m/km
Standard for min. roughness for highways
SOURCE: Local Transport Agencies, McKinsey OHI Database 22

Future ▪ Create an external ▪ Percentage of ▪ 2-3% of budget ▪ Developed country benchmarks for
proofing oriented budget allocated to infrastructure investment in R&D
organization newly established
capable of innovation unit
monitoring and
selectively adopting
technological
changes for the
SOURCE: European Infrastructure Report 23

B Objectives for each MoT affiliate based on NTS 2030 and own strategic outlook
- PTA
Objectives NTS 2030 Objectives Final PTA Objectives
Regional logistical 1 Ensure efficient and effective internal (within KSA) and external (internationally) ▪
Pt1 Provide an effective and efficient public transport system that is integrated
hub links to priority population and value chain centres with other modes and stakeholders
Livable 2 Minimize the rate of transportation accidents and fatality and create the basis for ▪
Pt2 Ensure adoption and compliance with the highest level of safety and
cities a safety-oriented culture quality standards for the public transport sector
3 Improve urban mobility, including reduce congestion ▪
Pt3 Stimulate the use of public transportation
4 Minimize the sectors negative impact on the environment; in particular reduce ▪ Limit environmental pollution, including reducing energy consumption,
Pt4
energy consumption through development of the required specifications in cooperation with
relevant authorities
Fiscal sustain- 5 Optimize transport assets’ total cost of ownership through effective delivery of ▪
Pt5 Expand private sector participation within the public transport sector
ability new assets and efficient use and maintenance of existing ones attracting best-in-class industry players and investors
6 Increase private sector participation in delivering and operating transport assets
7 Ensure appropriate sector governance, adequate operating models and ▪

Pt6 Develop a regulatory framework for the public transport sector, and define
Governance, supporting regulations optimum operating models
operating models
Health objectives
and regulations
8 Build a collaborative, high-performing, and customer-oriented organization
9 Create an external oriented organization capable of monitoring and selectively ▪

Pt7 Build an high performing organization able to manage and properly
Future adopting technological changes for the benefit of the sector regulate the adoption of innovative technologies in the public transport
proofing sector
SOURCE: PTA, team analysis 24

B A full set of outcomes has been defined for each transport organization –
PTA KPIs/KPTs (1/6)
Objectives PTA objectives KPIs Proposed Targets Benchmarks
Regional ▪ Provide an ▪ Public transport services ▪ 100% by 2030 ▪ Based on strategic vision of and specific context
logistical effective and availability -No. of cities with of PTA
hub efficient public public transport masterplan ▪ KPI to be shared with other entities (MoMRA,
transport system defined and launched etc.)
that is integrated
with other modes ▪ Public Transport User ▪ 80%
and stakeholders Satisfaction- % of high/good
satisfaction scores of public
transport services by end users,
in cities with active PT system -
based on PTA created survey-
measuring quality (including
punctuality), accessibility and
availability of services
▪ Intermodal connectivity-% of ▪ 100% ▪ Based on strategic vision of and specific context

public transport systems with of PTA
transfer facilities that allow
passengers to move from one
mode of transport to another
(e.g. connectivity among urban
PT systems, railroad network,
airports, etc.)
SOURCE: PTA, Public Transport Entities Websites, team analysis 25

PTA KPIs/KPTs (2/6)
Livable ▪ Ensure adoption ▪ Safety accident rate (mass ▪ 2.0 by 2030

transportation)- injuries per 2.6
Cities and compliance
million public transport journeys
with the highest
1.8
level of safety and
quality standards
for the public ▪ Safety compliance (taxis and ▪ Reduction of violation ▪ Based on specific context of PTA and definition of
mass transportation) - No. of from current baseline- safety regulations.
transport sector safety violations recorded per 5% YoY
1000 vehicles inspected
(excluding trucks)
▪ Stimulate the use ▪ Public Transportation ▪ 2-3% of average daily

of public Affordability- % of average daily income 1.8
transportation income
2.2
2.8
3.5
4.3
SOURCE: PTA, Transport for London, American Public Transport Association, Operator Websites, General Statistics Authorities, team analysis 26
PTA KPIs/KPTs (3/6)
Livable ▪ Stimulate the use ▪ Public Transport Mode Share- ▪ 15% by 2025
of public % of transport journeys done ▪ 20% by 2030 Abu Dhabi 5
Cities
transportation on public Transport in cities with
Casablanca 13
deployed public transport
system (for cities with PT system
established by minimum 2 Amman 14
years)
Dubai 14
New York 23
London 27
Berlin 27
▪ Accessibility- Percentage of ▪ 100%

public transport assets, in cities
with active PT systems, that are
accessible by personnel with
disability (handicap friendly)
SOURCE: PTA, UITP MENA Report, UITP Passenger Mode Shares Report, Team analysis 27
PTA KPIs/KPTs (4/6)
Livable ▪ Limit ▪ % public vehicles (taxis, ▪ 20% by 2020

environmental limousine, etc.) with Fuel ▪ 50% by 2025 4.1
Cities
pollution, Consumption that are rated ▪ 80% by 2030 4.1
including Very Good or Above under
reducing energy SASO Fuel Economy Labelling
5.2
consumption, Requirements (Currently at
through <7L/100km) 5.3
development of
the required Fuel Economy Regulations- L/100km
specifications in
cooperation with ▪ % of Commercial Trucks1 ▪ 20% by 2020
0.13
relevant (Heavy Duty Vehicles) with ▪ 50% by 2025
authorities Hydro-Carbon Emissions less ▪ 80% by 2030 0.13
than 0.2 g/kwH
0.16
0.19
0.19
0.462
Min standard applied to all heavy-duty vehicles

1 Trucks with curb weight of >3856kg
2 UAE Standards based on Euro V standards, currently studied to be updated to Euro VI, and meet current EU Emission Values
SOURCE: European Commission , United States EPA, Delphi Worldwide Emission Standards, Country Environmental Regulations, Team analysis 28
PTA KPIs/KPTs (5/6)
Livable ▪ Limit ▪ Clean Fleets- % of PT fleets ▪ 25% by 2025 Toronto

environmental (excluding taxis) operating on ▪ 50% by 2030 35
Cities
pollution, clean fuel3 Houston1 40
including
reducing energy Dubai2 50
consumption,
through Stockholm 80
development of
the required Vienna 100
specifications in
cooperation with
relevant
authorities
1 For entire USA, 48% of public transport buses operate on clean fuel | 2 Target for 2021 for entire public transport fleet, including taxis
3 remaining share of the fleet to use commercial trucks limits for emission
SOURCE: Operator Websites, American Public Transport Association 29
PTA KPIs/KPTs (6/6)
Fiscal ▪ Expand private ▪ Percentage of private sector ▪ 4% by 2020 ▪ Overall Target for Transport sector Participation
Sustain-
sector investments in public ▪ 10% by 2025
participation transportation out of overall ▪ 16% by 2030
ability within the public investment (split per: mode,
transport sector inter, and intra-city)
Governance, ▪ Develop a ▪ No. of policies reviewed and ▪ 8 policies reviewed and ▪ Target already communicated to ADAA
regulatory frame- approved yearly updated until 2020
operati-ng
work for the
models and public transport
regulations sector, and define
optimum
operating models
Future- ▪ Build an high ▪ Percentage of automated ▪ 100% for PTA internal ▪ Based on strategic vision of and specific context
performing org. services internally in PTA services by 2020 of PTA
proofing
able to manage
and properly re- ▪ Percentage of services offered to ▪ 100% for external ▪ Based on strategic vision of and specific context
gulate adoption the public through digital services by 2020 of PTA
of innovative platform and e-services (e.g., ▪ (All services that can be provided through digital
technologies in licensing, etc.) platform)
the public
transport sector
SOURCE: ADAA, MoT Strategy, team analysis 30

C Objectives for each MoT affiliate based on NTS 2030 and own strategic outlook
– Rail sector (SAR)
Objectives NTS 2030 Objectives Final SAR Objectives
Regional logistical 1 Ensure efficient and effective internal (within KSA) and external (internationally) ▪
R1 Efficiently and effectively connect the center of economic activities of the
hub links to priority population and value chain centres Kingdom by developing strategic rail infrastructure
▪ Improve regional connectivity through integrated railway networks with
R2
neighboring countries to facilitate social, industrial and commercial
activities
▪ Integrate railway services within themselves and with other transport
R3
modes to ensure efficient logistics operations in the Kingdom

Livable 2 Minimize the rate of transportation accidents and fatality and create the basis for ▪
R4 Strive to operate the safest railway network in MENA
cities a safety-oriented culture
3 Improve urban mobility, including reduce congestion ▪
R5 Contribute to improve urban mobility through better integration and
coordination of rail infrastructure with urban planning and public transport
4 Minimize the sectors negative impact on the environment; in particular reduce ▪ Contribute to the reduction of CO2 emission rates by offering an energy
R6
energy consumption efficient mode of transport
Fiscal sustain- 5 Optimize transport assets’ total cost of ownership through effective delivery of ▪
R7 Realize maximum return on assets including total cost of ownership
ability new assets and efficient use and maintenance of existing ones optimization
6 Increase private sector participation in delivering and operating transport assets ▪

R8 Diversify financing sources to minimize reliance on public funding
7 Ensure appropriate sector governance, adequate operating models and ▪

R9 Establish a world class business model to deliver highly efficient railway
Governance, supporting regulations services
operating models
8 Build a collaborative, high-performing, and customer-oriented organization ▪ Foster a customer-focused culture by delivering superior railway services
Health objectives
and regulations R10
9 Create an external oriented organization capable of monitoring and selectively ▪ Implement global best practices in technology and innovation to improve
R11
Future adopting technological changes for the benefit of the sector sector performance
proofing
31
D Objectives for each MoT affiliate based on NTS 2030 and own strategic outlook
– Rail sector (SRO)
Objectives NTS 2030 Final SRO objectives
Regional 1 Ensure efficient and effective internal (within KSA) and external R1 Establish a high capacity and high quality railway connection between Dammam
logistical hub (internationally) links to priority population and value chain centres and Riyadh which is integrated with other transport modes
 Ensure coordination, interoperability, and interconnectivity between SRO and SAR

R3
network
Livable 2 Minimize the rate of transportation accidents and fatality and create the R4 Ensure safety on the railway network system
cities basis for a safety-oriented culture
3 Improve urban mobility, including reduce  Trigger public transport demand and support passenger railway transport by
R5
congestion subsidies
4 Minimize the sectors negative impact on the environment; in particular  Reduce air pollution including minimizing energy consumption for railway
R6
reduce energy consumption services
Fiscal 5 Optimize transport assets’ total cost of ownership through effective delivery  Maximize SRO revenues from a variety of sources to reduce dependence on
R7
sustain- of new assets and efficient use and maintenance of existing ones public funding
ability
6 Increase private sector participation in delivering and operating transport R8
 Increase private sector participation in delivering railway services
assets
7 Ensure appropriate sector governance, adequate operating models and  Re-organize SRO and SAR to a single railway organization
R9
supporting regulations
Govern-
ance,
8 Build a collaborative, high-performing, and customer-oriented organization  Build up a high-performing railway network
R10
operating
Health objectives
models and
regula-tions
9 Create an external oriented organization capable of monitoring and  Implement global best practices in technology and innovation to improve
R11
Future selectively adopting technological changes for the benefit of the sector sector performance
proofing
32
C/D A full set of outcomes has been defined for each transport organization –
Rail sector (SAR/SRO) KPIs/KPTs (1/9)
Objectives SAR/SRO objectives KPIs Proposed Targets Benchmarks
Regional SAR: Efficiently and ▪ Passenger-km/km rail: No. of ▪ 0.5 million passenger-
effectively connect passengers x no. of kms km/km rail by 2030 0.2
logistical
hub the centers of travelled/total passenger
economic activities network length 0.3
of the Kingdom by
developing strategic 1.2
rail infrastructure
& 4.7
SRO: Establish a high 7.9

capacity and high
quality railway
connection between ▪ Ton-km/km rail: Tonnes ▪ 2.5 million tonnes-
Dammam and transported x no. of kms km/km rail by 2030 0.3
Riyadh which is travelled/total freight network
integrated with other length 1.3
transport modes
2.2
2.6
13.0
SOURCE: International Union of Railways-2015 Synopsis 33

Regional SAR: Efficiently and ▪ Passenger train punctuality- % ▪ 90% (2020)

74
logistical effectively connect of passenger trains arriving ▪ 95% (2025)
hub the centers of within 15 minutes of published 88
economic activities timetable
of the Kingdom by 92
developing strategic
rail infrastructure 97
& 97
SRO: Establish a high ▪ Freight Train Punctuality ▪ 50% (2020)
capacity and high (Container)- % of freight trains ▪ 70% (2025) 42
quality railway arriving within 15 minutes of
connection between 66
published timetable
Dammam and
74
Riyadh which is
integrated with other 79
transport modes
95
▪ Freight Train Punctuality (Bulk) - ▪ 50% (2020)

% of freight trains arriving within ▪ 70% (2025)
60 minutes of published
timetable
SOURCE: Train Operator Websites 34

Regional SAR: Improve ▪ Passenger Km to international ▪ TBD1 ▪ Based on specific context for SAR and aspects of
logistical regional connectivity destinations its vision/mandate
hub through integrated
railway networks with ▪ Ton Km to international ▪ TBD1
neighboring destinations
countries to facilitate
social, industrial and
commercial activities
SAR: Integrate
railway services
▪ Number of coordinated ▪ TBD ▪ Based on specific context for SAR and aspects of
within themselves
intermodal projects connecting its vision/mandate
different modes
and with other
transport modes to ▪ TEUs transferred in the ▪ TBD
ensure efficient intermodal yard
logistics operations
in the kingdom
&
SRO: Ensure
coordination,
interoperability, and
interconnectivity
between SRO and
SAR network
1 Today, no rail international connection are resent in KSA
35
Livable SAR: Integrate ▪ UIC global safety index- ▪ 7.0 by 2020 2011 10.0
Cities railway services Comprehensive index based on ▪ 5.0 by 2030 2012 9.9
within themselves type of accident, category of
and with other the victim, number of victims 2013 9.2
transport modes to and railway system responsibility 2014 8.6
ensure efficient 2015 7.8
logistics operations in
the kingdom ▪ Loss time injury frequency rate- ▪ 1.3 by 2030 ▪ OSHA loss time incidence rate for heavy civil
& Incidence rate of non-fatal construction= 1.3 per 100 full-time workers
SRO: Ensure injuries and illnesses per 100
coordination, full-time workers
interoperability, and
interconnectivity ▪ Accident rate per million train ▪ 0.80 ▪ European Union had an accident rate of 0.84
between SRO and km accidents per million train-km from 2012-2014
SAR network
▪ Fatality weighted index- ▪ 0.32 by 2020 0.07
Fatalities per million train-km ▪ 0.20 by 2025
0.14
0.17
0.70
1.20
SOURCE: 2016 International Union of Railways Safety Report, US Bureau of Labor Statistics, 2016 Railway Safety Performance in the European Union 36
Livable SAR: Contribute to ▪ % of train stations connected to ▪ 100%1 ▪ Based on specific context for SAR and aspects of
Cities improve urban public transport systems its vision/mandate
mobility through (excluding taxis), in cities with
better integration existing public transport
and coordination of systems
rail infrastructure
with urban planning
and public transport
&
SRO: Trigger public
transport demand
and support
passenger railway
transport by
subsidies
1 Based on proposed target for PTA

Livable SAR: Contribute to ▪ YoY improvement on CO2 per ▪ 1% YoY improvement ▪ Based on specific context for SAR and aspects of
Cities the reduction of CO2 capita reduction vs. current from current baseline its vision/mandate
emission rates by baseline for the next 10 years
offering an energy
efficient mode of
transport
&
SRO: Reduce air
pollution including
minimizing energy
consumption for
railway services
1 Based on proposed target for PTA

Fiscal SAR: Realize ▪ Maintenance backlog ▪ 10% YoY reduction for ▪ Based on specific context for SAR and aspects of
Sustain- maximum return on next 10 years its vision/mandate
ability assets including
total cost of ▪ SPI (schedule performance ▪ 0.9 ▪ Based on specific context for SAR and aspects of
ownership index) per project its vision/mandate
optimization
& ▪ CPI (cost performance index) ▪ 0.9 ▪ Based on specific context for SAR and aspects of
SRO: Maximize SRO per project its vision/mandate
revenues from a
variety of sources ▪ Percentage of non-fare reve- ▪ 5% by 2020 ▪ Based on average of non-fare revenue in
to reduce nues from total revenue streams ▪ 10% by 2025 countries with well-established rail system (15%)
dependence on (e.g. retail, real estate, etc.) ▪ 15% by 2030
public funding
▪ R&M OpEx per pax-KM- USD$ ▪ 0.34$/ pax-km in 2030
Spent/pax-km 0.05
0.06
0.15
0.34
1.07
SOURCE: Operator Websites, International Union of Railways Report 39

Govern- SAR: Establish a ▪ Achievement of best practice in ▪ 100% CMMI level 3 for ▪ Based on specific context for SAR and aspects of
ance, world class business railway market: all processes in SAR its vision/mandate
operating model to deliver -% of processes achieving level
models and highly efficient 3 on the CMMI
reg-ulations railway services
&
SRO: Re-organize
SRO and SAR into a ▪ Customer Satisfaction Rate- ▪ 60% by 2025
single railway 40%
proportion of high and good ▪ 70% by 2030
organization satisfaction scores of rail 51%
services from passengers –
according to Eurobarometer 52%
Survey 382a
SAR: Foster a
customer-focus 78%
culture by delivering
superior railway
services ▪ Customer Satisfaction Rate- ▪ 60% by 2025 ▪ Based on specific context for SAR
& proportion of high and good ▪ 70% by 2030
SRO: Build up a satisfaction scores of rail
high-performing services from freight customers-
railway network based on SAR designed Survey
SOURCE: European Comission railway customer satisfaction report, UNIFE Rail Industry Report 40
Future Implement global ▪ Percentage of revenue allocated ▪ 2-3% of revenue ▪ EU rail industry has allocated 2.7% of its annual
proofing best practices in to budget of the innovation unit turnover to R&D activities
technology and
innovation to
improve sector
performance
SOURCE: European Comission railway customer satisfaction report, UNIFE Rail Industry Report 41
E Objectives for each MoT affiliate based on NTS 2030 and own strategic outlook
– SEAPA
Objectives NTS 2030 Objectives Final SEAPA Objectives
Regional logistical 1 Ensure efficient and effective internal (within KSA) and external (internationally) ▪ Provide efficient and effective ports network that is integrated with the
P1
hub links to priority population and value chain centres other transport modes, to connect the national economy to the global
market
Livable 2 Minimize the rate of transportation accidents and fatality and create the basis for ▪ Ensure a safe environment for people, property, and cargo and address
P2
a safety-oriented culture impacts on surrounding communities in collaboration with other agencies
cities
3 Improve urban mobility, including reduce congestion

4 Minimize the sectors negative impact on the environment; in particular reduce ▪ Distinguish the Kingdom’s ports as leaders in environmental stewardship
P3
energy consumption and compliance by implementing practices that minimize or eliminate
environmental impacts and health risks of port operations and
development on employees, workers, and communities
Fiscal sustain- 5 Optimize transport assets’ total cost of ownership through effective delivery of ▪ Design and enforce the appropriate concession and contracting structures
P4
ability new assets and efficient use and maintenance of existing ones to optimize ports total cost of ownership
6 Increase private sector participation in delivering and operating transport assets ▪ Ensure that local port authorities are financially self-sustaining and fiscally
P5
strong
7 Ensure appropriate sector governance, adequate operating models and ▪ Create and manage a safe, effective, and efficient organization that fosters
P6
Governance, supporting regulations an inclusive, open, and team oriented culture and provides the opportunity
operating models for the Head Office and individual port organizations to contribute to port
Health objectives
and regulations competitiveness

8 Build a collaborative, high-performing, and customer-oriented organization ▪ Enhance customer focus within the head office and individual port
P7
organizations
▪ Integrate stakeholders into strategy development and implementation
P8
9 Create an external oriented organization capable of monitoring and selectively ▪ Promote innovative solutions to facilitate operational efficiency at each
P9
Future adopting technological changes for the benefit of the sector port
proofing
42
E A full set of outcomes has been defined for each transport organization –
Port sector (SEAPA) KPIs/KPTs (1/4)
Objectives SEAPA objectives KPIs Proposed Targets Benchmarks
Regional
▪ Provide efficient ▪ Average Pre-Berthing Time- no. ▪ TBD
and effective of hours vessel waits in vicinity
logistical
ports network of port before arriving at berth
hub
that is
integrated with
the other ▪ Berth Productivity – total ▪ 100 by 2020 Jebel Ali 138
transport container moves (onload, ▪ 150 by 2030
offload and repositioning) Shanghai 101
modes, to
connect the divided by the number of hours Salalah 99
national for which the vessel is at berth
Rotterdam 88
economy to the
global market Los Angeles 80
Durban 60
▪ Container dwell time - # of days ▪ 5 by 2020 Saudi Arabia 14.0

a container waits to get picked ▪ 3 by 2030
up at a marine terminal after Tanzania 6.3
being unloaded from a vessel Los Angeles 5.2
Indonesia 4.7
India 3.8
Malaysia 3.0
Singapore 1.5
SOURCE: JOC Database 2015, Operator Websites, NTP 43
Livable
▪ Ensure a safe environment for ▪ Loss Time ▪ 3.0 by 2020 1.8
Cities
people, property, and cargo and Incident Rates ▪ 2.0 by 2030
address impacts on surrounding 1.9
communities in collabo-ration
2.2
with other agencies
5.2
▪ Distinguish the Kingdom’s ports ▪ % of CO2 ▪ 3% YoY ▪ Rotterdam port aims to achieve a 3% YoY reduction in
as leaders in environmental reduction vs Reduction overall CO2 footprint
stewardship and compliance by Baseline ▪ Port of Bremen achieved a 5% YoY reduction in CO2
implementing practices that footprint from 2008-2015
minimize or eliminate
environmental impacts and
health risks of port operations ▪ % of Ports ▪ 50% by 2025
and development on employees, participating ▪ 100% by 2030
workers, and communities in World Ports
Climate
Initiative
SOURCE: Operator Annual Reports 44

Fiscal
▪ Ensure that local port ▪ Revenue growth ▪ 5% YoY ▪ Based on meeting projected volumes in 2030 for all
authorities are financially self- % ports in the kingdom-based on ports strategy
Sustain-
sustaining and fiscally strong
ability
Govern- ▪ Create and manage a safe, ▪ OHI Score ▪ Top Quartile for ▪ Global Public Sector Top Quartile- 60
ance, effective, and efficient Public Sector ▪ Infrastructure Top Quartile- 66
operating organization that fosters an Globally ▪ Saudi Arabia Top Quartile- 62
models and inclusive, open, and team
regulations oriented culture and provides
the opportunity for the Head
Office and individual port
organizations to contribute to
port competitiveness
▪ Enhance customer focus within ▪ User Satisfaction ▪ 80%

the head office and individual Rate-proportion
port organizations of high and good
satisfaction scores
from operators
and end users-
based on SEAPA
created survey
SOURCE:Annual Reports from Operators, Ports Masterplan 45
▪ Integrate stakeholders into ▪ Number of ▪ Minimum 1
Govern- strategy development and Interaction with executive
ance, implementation other transport meeting per
operating entities - No. of quarter with
models and coordination other transport
regulations meetings attended modes
with other transport organizations
Future ▪ Promote innovative solutions ▪ Percentage of ▪ 2-3% of budget

proofing to facilitate operational budget allocated to
efficiency at each port newly established
innovation unit
▪ % of ports with ▪ 50% by 2025
automated ▪ 100% by 2030
terminals
SOURCE: Press Search, Operator Websites 46

F Objectives for each MoT affiliate based on NTS 2030 and own strategic outlook
– GACA
Objectives NTS 2030 Objectives Final GACA Objectives
Regional logistical 1 Ensure efficient and effective internal (within KSA) and external ▪ Establish air links to support broader economic growth
A1
hub (internationally) links to priority population and value chain centres ▪ Facilitate religious tourism to grow KSA aviation industry
A2
▪ Support KSA carriers, including new entries, to promote sector
A3
employment and passenger choice of services and airfares
Livable 2 Minimize the rate of transportation accidents and fatality and create the ▪ Achieve the highest level of aviation safety, including full
A4
cities basis for a safety-oriented culture compliance with international safety standards
3 Improve urban mobility, including reduce congestion ▪ Minimize environmental impact and reduce energy consumption by
A5
adopting international standards, innovative technologies, and
4 Minimize the sectors negative impact on the environment; in particular A6
reduce energy consumption sustainable energy sources
Fiscal sustain- 5 Optimize transport assets’ total cost of ownership through effective ▪ Design and enforce the appropriate concession and contracting
A7
ability delivery of new assets and efficient use and maintenance of existing ones structures to optimize assets total cost of ownership
6 Increase private sector participation in delivering and operating transport ▪ Reduce reliance on public funding by increasing participation and
A8
assets improving strategic partnership with the private sector
7 Ensure appropriate sector governance, adequate operating models and ▪ Reaffirm GACA's role as the aviation regulatory authority focusing
A9
Governance, supporting regulations on policy, regulations and compliance.
operating models
▪ Integrate aviation sector development with other transport modes
A10
Health objectives
and regulations
in the Kingdom
8 Build a collaborative, high-performing, and customer-oriented ▪ Enhance overall customers’ airport experience
A11
organization
9 Create an external oriented organization capable of monitoring and ▪ Adopt global best practices in technology and innovation to
A12
Future selectively adopting technological changes for the benefit of the sector improve sector performance and customer experience
proofing
47
F A full set of outcomes has been defined for each transport organization –
Air sector (GACA) KPIs/KPTs (1/9)
Objectives GACA obj. KPIs Targets Benchmarks
Regional ▪ Establish air ▪ No of bilateral agreements - No. of ▪ TBD ▪ Based on strategic vision of and specific
logistical links to existing bilateral agreement between context of GACA
hub support KSA and other countries
broader ▪ No. of international air links - No. of ▪ TBD ▪ Based on strategic vision of and specific
economic air connections existing between KSA context of GACA
growth and international centers
Ranking 16-17
▪ Quality of air transport infrastructure – ▪ Top 25 by 2020
Measure of the quality (extensiveness ▪ Top 10 by 2030 6.7 2
and condition) of air transport by 6.2 7
WEF1 6.1 9
5.9 12
5.8 18
5.4 29
4.9 45
3.9 95
▪ Available airline seat kilometers ▪ 10% YoY growth 18.2
millions/week – Measured by WEF 18.0
15.7
11.0
9.0
8.8
8.1
1 1 = extremely underdeveloped—among the worst in the world; 7 = extensive and efficient—among the best in the world CAGR (06-16)
SOURCE: World Economic Forum Global Competitiveness Report 2016-17 48
Regional ▪ Establish air ▪ Passenger growth rate - It measures ▪ 6% YoY up to 2030 Average pax growth rate (%, 11-15)
logistical links to the development of air traffic through
hub support measuring the growth rate of 16
broader passengers number for the current
economic year against the previous year 15
growth
14
▪ Cargos movement growth rate - It ▪ 14% YoY up to 2030 Average cargo growth rate (%, 11-15)
measures the development of air
traffic through measuring the growth 20
rate of cargo weight figure(Ton) for
the current year against the previous 17
year
12
SOURCE: World Bank 49

Regional ▪ Facilitate ▪ Capacity dedicated for Hajj - Capacity ▪ 380,000 pax/day1

logistical religious of dedicated terminals in relevant
hub tourism to airports expected to handle pilgrims
grow KSA (daily, monthly)
aviation
industry
▪ Quality of Hajj transport experience - ▪ 80%
% of high and good satisfaction scores
of Hajj transport services- based on
GACA created survey
▪ Support KSA ▪ No. of operating KSA carriers - Count ▪ 62 by 2030 ▪ Based on strategic vision of and specific
carriers, of the competing Saudi carriers, that context of GACA
including new helps maximizing choices for
entries, to passengers, and creating more jobs
promote for Saudis
sector em-
ployment and
passenger
choice pf
services and
airfares
1 Considering a 2030 MoHajj target of 4M Hajj visitors, where 95% arrive by air, mainly through Jeddah, Taif, Yanbu, and Medinah airports over a pre Hajj period of 10 days
2 Preliminary; based on potential GACA plans
SOURCE: Team Analysis, Client Interviews 50
Livable ▪ Achieve the ▪ Percentage of certified airport staff - ▪ TBD ▪ Based on strategic vision of and specific
cities highest level of % of certified airport staff out of the context of GACA
aviation safety, overall staff
including full
compliance ▪ Percentage of GACA certified airports ▪ 100% by 2020
with out of total
international ▪ Effective implementation score - score ▪ 90% minimum across
safety 99
presented for the various categories1 each ICAO category
standards and critical elements2 covered under and critical element by 98
ICAO’s Universal Safety Oversight 2020
Audit Programme (USOAP) ▪ 95% by 2030 95
94
90
89
▪ Aviation accident rate - The ▪ TBD

percentage of accidents (as per ICAO
Annex 13 definition) compared to the
number of air traffic movements
during the year
1 Categories include Legislation, Organization, Licensing, Operations, Airworthiness, Accident Investigation, Air Navigation Services, and Aerodromes
2 Critical Elements include Aviation Security Legislation, Aviation Security Programs, State Appropriate Authority, Personnel Qualification and Training, Provision of Technical Guidance, Tools and
Security Critical Information, Certification and Approvals, Quality Control, Resolution of Security Concerns
SOURCE: ICAO API Data Service 51
Livable ▪ Minimize ▪ Airports achieving Carbon Neutrality ▪ 2020: All regional and Mapping
cities environmental Accreditation as per ACI Airport international airports
impact and Carbon Accreditation Program receive Mapping
reduce energy certification
consumption ▪ 2025: International Reduction
by adopting airports achieve
international Optimization and
standards, Regional airports
innovative achieve Reduction
technologies, ▪ 2030: International Optimization
and airports achieve
sustainable Neutrality and Regional
energy sources airports achieve
Optimization
Neutrality
▪ Number of environmental noise ▪ TBD ▪ Based on strategic vision of and specific

violations (for each airport) context of GACA
▪ Number of environmental initiatives ▪ TBD ▪ Based on strategic vision of and specific

launched by GACA context of GACA
SOURCE: ACI Carbon Accreditation Program 52

Fiscal ▪ Design and ▪ Split between types of contracts for ▪ 50% of each type by
sustain- enforce the project delivery (D-B vs. D-B-B)2 2030
ability appropriate
concession
and contrac- ▪ Projects delivered on time and budget ▪ 90%
ting structures
to optimize
assets
total cost of ▪ Percentage of private investment out ▪ TBD ▪ Based on strategic vision of and specific
ownership of total investment context of GACA
▪ Reduce ▪ Percentage of airports operated by ▪ 40% by 2020 ▪ Based on strategic vision of and specific
reliance on private parties1 ▪ 60% by 2030 context of GACA
public funding
by increasing
participation ▪ Percentage of financial independence ▪ 100% by 2030 ▪ Based on strategic vision of and specific
and improving from MoF - The ability of GACA to context of GACA
strategic cover its financial obligations from its
partnership own revenue
with the
private sector
1 Excluding SAVC
2 D-B is a project delivery method in which the design and construction services are handled by the same entity; Whereas D-B-B is a project delivery method in which different entities handle the
design and construction parts of the project
SOURCE: GACA, Team analysis, Client Interviews 53
▪ Reaffirm
GACA's role as
the avia-tion
regulatory
authority
focusing on
policy, regu-
lations and
compliance
Govern-
ance, ▪ Integrate ▪ Interaction with other transport ▪ Minimum 1 executive
operating aviation sector entities - No. of coordination meetings meeting per quarter
models and development attended with other transport with other transport
regula-tions with other modes organizations
transport
modes in the ▪ Ratio of connected airports with PT ▪ 100%
Kingdom systems - % of airports connected to
PT systems (excluding taxi) in cities
with existing PT systems
SOURCE: GACA, Team analysis, Client interviews 54

▪ Enhance ▪ % of high and good satisfaction scores ▪ 80%
overall of GACA services towards service
customers’ providers/operators - based on GACA
airport created survey
experience
▪ Annual ranking in SKYTRAX1 – Ranking ▪ For the Int’l airports: Airport Ranking2
of top 100 international airports by – Top 100 by 2020 1
Skytrax organization in terms of – Top 50 by 2030 Singapore Changi
quality, services excellence and 6
Govern- customer satisfaction Hamad Intl Airport
ance, 9
Heathrow airport
operating
20
models and Dubai airport
regula-tions 43
Atlanta Hartsfield-
Jackson
63
New York JFK Airport
93
Medina airport
1 Evaluates traveler experiences among different services, along with other airports KPIs (e.g., check-in, arrivals, transfers, shopping, security, immigration, and departure at the gate)
2 Skytrax top 100 airports list – 2017
SOURCE: Team analysis, Skytrax 2017 rating 55
▪ Adopt global ▪ Percentage of budget allocated to ▪ 2-3%
best practices innovation unit
in technology
and innovation
to improve
sector
performance
and customer
experience
Future
proofing
SOURCE: European Infrastructure Report 56

Contents
▪ NTS 2030
▫ Challenges
▫ Current Network Capacity Assessment
▫ Initiatives
57
Strategic initiatives will enable the achievement of the set objectives and outcomes,
while serving as a governing thought for the programs Detailed in other sections
Approach
▪ Define the specific challenges for the different
Mission & affiliates and the sector as a whole
vision ▪ Align defined challenges with transport sector
affiliates
▪ Assess status of current KSA network
Objectives ▪ Project traffic demand to identify potential

criticality and optimize existing plans
▪ Develop overall transport sector’s initiatives
▪ Reassess entities’ specific initiatives and
Strategic initiatives ensure integration
▪ Create transport sectors’ masterplan
▪ Design new transport sector governance and
Ministry structure
Initiative Prioritization
▪ Syndicate challenges and strategic initiatives
with relevant stakeholders

Contents

▪ NTS 2030
▫ Challenges
▫ Initiatives
59
The overall transport sector currently faces a number of challenges across several key
dimensions
Challenges
▪ Customs clearance is complex and lengthy, resulting in elevated dwell times and compliance costs
▪ Poor quality of trade related infrastructure, in particular logistics platforms
Logistics
▪ Quality of logistics operators across the Kingdom ranks amongst the lowest in the GCC
▪ Traffic safety across the Kingdom is amongst the poorest globally and worsening (24.2 to 26.8 fatalities / 100,000 inhabitants between 2010 and 2015)
Transport ▪ Risk of deteriorating air safety resulting from increased workload and potential generational gap in technical capabilities due to under-investment in training
safety of new resources
▪ Rail safety metrics in the kingdom indicate poor performance across several dimensions
▪ Lack of comprehensive public transport network across the Kingdom

▪ Limited alternative to major city roads (in particular ring roads) to decongest urban centres
Congestion
▪ Lack of coordinated tariff scheme for upcoming public transport systems and taxis to stimulate use of public transportation
▪ Limited energy efficiency guidelines across all transport modes, and lack of adherence to global standards
Energy ▪ Limited coordination on sector wide energy policies and standards

Efficiency ▪ No availability of (or plans to provide) charging stations and/or other energy efficiency oriented infrastructure on Kingdom’s roads
▪ Significant maintenance backlog across the road network

Maintenance
backlog and ▪ Lack of an effective TCO approach when evaluating bidders
CAPEX ▪ Over-reliance on traditional contracting methods (e.g. Build) as opposed to more innovative approaches (e.g. DB, DBM, output)
affordability ▪ Lack of a robust stage gate approach to properly scrutinize projects across their lifecycle
SOURCE : Team Analysiis 60

Logistics - Performance has been dropping as underlined by the LPI
Drop in the Kingdom’s LPI performance Drivers of the LPI
LPI
rank1 Country Int’l LPI score 2.6 2.9 3.2 3.6 3.9 4.2
 Customs (efficiency of the clearance process)

1 Germany 4.23
 Infrastructure (quality of trade and transport related

13 U.A.E. 3.94 infrastructure)
 International shipments (competitively priced

34 Turkey 3.42 shipments)
40 KSA (2010) 3.22  Logistics competence (quality of logistics services)
 Tracking & tracing (ability to track and trace

52 KSA (2016) 3.16 consignments)
 Timeliness (Shipment timeliness within expected

54 Mexico 3.11 timelines)
1 2016 World Bank report on the International Logistics Performance Indicator

SOURCE : MoT; Team analysis; World Bank 61
Logistics - Quality of trade related infrastructure, in particular logistics platforms, lag
behind regional peers
International Airport Sea Port Dryport Major cities

Al Haditha
Border crossing points Express ways Railways
▪ Some existing platforms are congested,
Hala Amar
running close/above capacity e.g.
Al Khafji
– Jeddah, Riyadh, Dammam cargo cities
Hail Jubail
– Riyadh dryport
Sudair
Damman ▪ Some existing platforms do not meet
modern logistics standards e.g. Khumra in
King Fahd bridge
Yanbu
Riyadh Salwa
Jeddah
KAP
Al Bathaa ▪ Gaps in coverage along key activity
centres such as Yanbu, Jubail, Sudair, Hail
and Jazan
▪
Jeddah
Important connectivity issues across the
six borders crossings with neighbouring
countries
Jazan

Logistics - The infrastructure quality is further compounded by connectivity issues
across major modes
Description
▪ SAR and SRO networks are not connected
▪ Rail and air transport are not well integrated
Passengers – Haramain High Speed (HHR) rail not connected to the Hajj terminal at Jeddah airport (KAIA)
interfaces – HHR rail not connected to the Madinah airport
– SRO link not connected to Dammam airport (KKIA)
▪ North-South link not currently connected to the Riyadh airport (KFIA) and the ongoing metro project
▪ Dry-port in Riyadh is working close to capacity
▪ Sudair industrial city is not integrated with the North-South link (despite being on it)
Freight ▪ No dryport at Jeddah Islamic Port (JIP)
inter-modal hubs
▪ No (complete) ring road in Jeddah, resulting in congestion along the city centre
▪ Key ports are not effectively integrated with the hinterland
System ▪ Border crossings do not include modern facilities for trucks (e.g. parking, weighing areas)
performance ▪ Cities do not have truck yards to facilitate movement of goods within the urban areas

Safety - Across all modes, there are significant challenges for transport safety
Description Result
▪ Lenient enforcement of traffic safety legislations coupled with limited awareness ▪ KSA has one of the poorest road
and education on road safety safety records globally and
▪ Poor road infrastructure with limited basic safety features such as sign-age, worsening, with more than 27
Road adequate intersection design, median barriers and EMS/police areas fatalities per 100,000 inhabitants,
▪ Safety standards for road design, cars and trucks lag behind global best compared to 3 in Japan, 5 in
practices Turkey and 11 in UAE
▪ Limited compliance and adherence to international rail safety standards ▪ Fatality risk in KSA is significantly
▪ Poor safety culture focused on consequence management rather than accident higher than most European
prevention countries, with a rate of 0.7
Rail
▪ Limited interaction and collaboration across different entities to ensure safety fatalities per million train-km
enforcement
▪ Limited capabilities at regional and domestic airports to consolidate key ▪ Risk of deteriorating air safety
procedures into standardized airport specific operations and safety manuals resulting from increased workload
Air
▪ Suboptimal reporting practices leading to opacity on incident root causes and potential generational gap in
▪ Limited budget allocated to hiring and training new inspectors and versing them technical capabilities due to under-
into the latest technologies of air safety and navigation may prevent GACA to investment in training of new
maintain a high level of safety in the future resources
SOURCE : Client Interviews, Team Analysis 64

Safety - Traffic safety across the Kingdom is amongst the poorest globally and worsening
(24.2 to 26.8 fatalities / 100,000 inhabitants between 2010 and 2015)
KSA road safety metrics are some of the poorest performing globally Challenges that affect road safety
Fatalities, 2015 Injuries, 2015
Country Per 100,000 hab Per 100,000 hab Awareness and enforcement
▪ Need for greater enforcement of stricter road
KSA 27 115 and traffic safety regulations and legislations
▪ Need for greater education and awareness
UAE 11 75 campaigns
Infrastructure
Turkey 52 3542 ▪ Road infrastructure misses basic safety features
such as intersections design, exit and entries to
Germany 4 485 highways, median barriers, signage, road safety,
etc…
Netherlands 3 1223 ▪ Road infrastructure doesn’t account for areas
required to support traffic enforcement police
Switzerland 3 260 and EMS crew
Standards
UK 3 284 ▪ Road design standards are lagging behind
global best practices, and still rely on outdated
Singapore 3 186 US Standards
▪ Car and trucks safety standards are lagging
Japan 3 432 behind global best practice
1 MoT Maintenance Management System (MMS) forecasts required funds for adequate maintenance of road network (SAR 7 Bn), while World Bank Road Network Evaluation Tools (RONET)
forecasted SAR 6.3 Bn 2 2013 3 2014
SOURCE : Eurostat, National Statistics, Transport Authorities, Press search 65
Safety – Air safety is a critical priority for the Kingdom going forward, especially as the air
sector picks up, driven by strained resources and a potential generational gap
Observation across air safety operations Emerging insights

Organizational Structure and Governance
▪ Support functions over-empowered vis-à-vis line functions for critical decisions regarding
technical staff (e.g. HR makes final decision on hiring and training inspectors)
▪ Limited budget allocated to training new inspectors and versing them into the latest
technologies of air safety and navigation
▪ Difficult career progression for inspectors, whereby promotions are directly linked to trainings ▪ Risk of suffering from a generational gap in
concluded; training often not systematically provided
technical capabilities due to under-investment
▪ Over-reliance on older generation of inspectors and service-providers for training of the in training of new resources
younger class of technical inspectors
Standardization ▪ Risk of deteriorating air safety with increased
workload (i.e. larger airports, more/bigger
▪ Limited capabilities at regional and domestic airports to consolidate key procedures into
carriers entering the Kingdom) due to
standardized airport specific operations and safety manuals
suboptimal approach to hiring and retention
▪ Large workload for GACA (vs. workforce size), reducing speed at which smaller airport get necessary talent
certified (GACA certified six out of 27 airports to date)
Monitoring & Reporting
▪ Limited availability of resources results in varying sample size for inspecting various parts of
the system and could lead to sample sizes that drive lower confidence levels across certain
ICAO critical elements

Safety - Rail safety metrics in the kingdom indicate challenges across several dimensions
KSA rail safety performance compared to regional and global peers Challenges that affect the rail transport safety
Rail Fatality Risk
Country Average deaths per million train-km, 2010-2016 Infrastructure and standards
 Topography and climatic conditions of the
Kingdom strain network infrastructure and pose
UK 0.07 risks on operations (e.g. sand)
 Protection infrastructure (e.g. fences) is often
France 0.14 taken down by civilians and not replaced timely
 Limited adherence to international safety
Germany 0.15 standards
Reporting and monitoring
Italy  Lack of proactive monitoring to identify
0.20
potential black spots, failure spots and public
violation of the network
South Korea 0.31
Enforcement and collaboration
 Lack of effective collaboration with MoI to
KSA 0.49 prevent public violations
 Lack of effective collaboration with Civil defense
Australia 0.59 and regional health authorities to conduct
adequate emergency response
USA 0.70
SOURCE : EU Railway Safety Report, SRO Safety Report, USA Safety 67

Congestion - Riyadh and Jeddah amongst top decile congested cities in the world
Riyadh
 Lack of comprehensive public transport 88th
of 1,064
network across the Kingdom in general, and
within the major cities in particular
 Limited alternative to major city roads (in
particular ring roads) to decongest urban
centres
 Limited use of intelligent traffic systems (ITS)
to better manage flows within urban areas
 Lack of measures and policies to manage and Jeddah
reduce the private transport demand (e.g., 180th
of 1,064
congestion and pollution fees, fuel
surcharges, etc.)
 Lack of coordinated tariff scheme for
upcoming public transport systems and taxis
to stimulate use of PT
SOURCE : TomTom, INRIX scorecard, team analysis 68

Energy intensity – KSA’s transport sector amongst most energy intensive ones globally
KSA transport sector energy footprint compared to peers Challenges that affect the transport sector energy footprint
Energy consumption of transport sector Sector wide

Country ToE per capita, based on 2016 reports ▪ Limited energy efficiency standards across all modes
▪ Limited coordination on sector wide energy policy
and standards
KSA 1.42 Roads and public transport
▪ No guidelines to improve energy efficiency across
roads lifecycle
UAE 1.38 ▪ No design standards to support use of material that
improves vehicle energy efficiency in road
construction or maintenance
Norway 1.05 ▪ No standards incentivizing import/use of energy
efficient public and private transport vehicles (e.g.
EURO-7 engines)
Sweden 0.87 ▪ No availability of (or plans to provide) charging
stations and/or other energy efficiency oriented
infrastructure on Kingdom’s roads
UK 0.79 Maritime
▪ Limited adherence to IMO energy efficiency and
France emissions standards
0.75 Air
▪ Limited participation in global accreditation
Turkey programs pertaining to environmental efficiency,
0.27
such as ACI Carbon Accreditation Program
SOURCE: Eurostat, Press search, Team analysis 69

Maintenance back-log - Significant maintenance backlog across the road network
Estimated annual maintenance budget shortfall for roads, SAR bn Key takeaways from the current funding gap
WEF road quality,
26 32 37
Ranking
Road network,
56 57 60 62
000 km
Normalized spend,
SAR 000/km 39 45 49 50
20  SAR ~4.1bn required to close annual
maintenance funding gap
 New capital investments made with
limited view on required
7.3
maintenance costs, further widening
funding gap
4.1  Ministry targets to increase self-
3.2 funding from ~3% to 20% by 2020
2.5 2.9
2.4 2.2  MoT has to generate additional
1.3 revenues from its road assets
1435 1436 1437 1438 1439F Annual required

maintenance
Actual
SOURCE : Client Interviews, Team Analysis, Expert Interviews 70

We then identified key challenges at the level of each mode and associated affiliate –
Road transport (MoT) challenges (1/8)
Objective Challenges across major themes Key takeaways
Rd1 Ensure efficient ▪ Traffic and Transport Data ▪ Data availability and quality
and effective – Limited availability of historical data for capacity and utilization of road assets to act as remains a critical issue which
internal (within a basis for planning and identification of demand generators impacts all aspects of
KSA) and external – Lack of a of clear guidelines on data that needs to be collected to support a transport infrastructure planning, ultimately
(internationally) model to forecast traffic demand limiting the optimal deployment
links to priority – Lack of information on end users’ behavior and mode preferences to support decisions of assets
population and on network expansion ▪ Coordination between MoT and
value chain ▪ Coordination between relevant stakeholders other relevant stakeholders only
centers – Limited coordination between MoMRA, the national spatial masterplan, and MoT happens on a partial and informal
planning activities and future projects basis, leading to limited utilization
– Limited visibility of other entities development plans (e.g. MEIM, RCJY, MoHousing etc.) and development of intermodal
– Suboptimal use of intermodal solutions to effectively and efficiently move passengers solutions
and freight across the Kingdom ▪ Budget is not adequately sized
▪ Capital deployment and maintenance budget and allocated to ensure
– Large capital expenditure required to expand current network to connect all current completion of key projects, and
and future socio-economic centers and meet future demand compare to budget implementation of necessary
availability maintenance efforts to prevent
– In some locations, network is inadequately sized compared to actual demand due to deterioration of road assets
investments decisions not supported by factual evidence
– Limited dedicated budgets to complete some key infrastructure projects and maintain
ageing infrastructure assets
SOURCE : Team analysis; client workshops 71

Rd2 Minimize the rate ▪ Road safety database ▪ Historical accident data and
of transportation – Limited availability of historical data and information pertinent to network safety information is limited and
accidents and records inconsistent across several
fatality and create – Lack of common and consistent national cross ministerial database containing entities, which hinders ability to
the basis for a accidents information to perform analysis and define necessary interventions define and implement necessary
safety-oriented ▪ Design, enforcement and monitoring of safety standards interventions addressing safety
culture – Lack of coordination between MoT and relevant stakeholders in order to take prompt gaps
decisions in regard to safety and maintenance standards implementation ▪ Safety standards are not updated
– Sub-optimal governance of the roads infrastructure, e.g., rest areas are under MoMRA to global best practices, and their
while road management is under MoT monitoring, enforcement and
– Limited support from other entities to prevent damages to MoT safety infrastructure, implementation is hindered by
e.g., MoI does not monitor and prevent cutting of safety fences and human/animal limited budget and resources
trespassing
– Lack of a prioritized list of interventions (based on impact and cost) to address current
safety gaps
▪ Safety-oriented culture and mindset
– Poor safety behavior, and practices and adherence to safety regulations, both for end
users and O&M contractors
– Limited resources to control and enforce safety regulations over contractors during
projects (e.g., detours, temporary maintenance works)
– Lack of organizational safety-oriented mindset resulting in deprioritization of safety
elements when constrained with budgets

Rd3 Improve urban ▪ Increased Mobility ▪ Limited incentives to reduce

mobility, including – Faster increase in demand for mobility compared to the available and planned private transportation use,
reduce transport alternatives and network capacity coupled with limited availability
congestion – Limited available alternatives for public transport public transport and an overall
– Low incentive to use public transportation (e.g., no pollution charge, toll roads) increased mobility in recent years
▪ Organizational Structure and Governance result in a congested urban road
– Lack of clarity on roles and responsibilities between MoT, MoMRA, and traffic network, especially in large cities
department of MoI ▪ Overall complexity of the sector’s
– Lack of proper systematic approach and codified decision making process to governance and limited
implement priority list of initiatives to improve congested links coordination among relevant
– Absence of a regulatory framework to reduce congestion without recourse to capital stakeholders result in a slow and
projects (e.g., smart traffic management and dedicated lanes on the ring roads and suboptimal decision making
inner city highways) process
– Limited interaction between different authorities to deliver effective multimodal ▪ Infrastructure interventions are
transport network (e.g., passenger ‘air-road/rail' and freight ‘rail-road’) not adequately planned due to
limited data and external
▪ Planning Process
influences
– Lack of fact based master planning to optimize new roads centerlines and planning
decisions, e.g., political influence to shift centerlines towards specific cities
– Lack of a common database necessary to analyze and plan adequate interventions

Rd4 Minimize the ▪ Environmental Protection and Energy Efficiency Strategy ▪ Lack of clear owner for the
sectors negative – Lack of clear strategy for MOT on environmental protection and energy efficiency environmental protection
impact on the – Lack of clarity on MoT roads department role when it comes to environmental agenda across the Kingdom
environment; in regulations presents great challenges in
particular reduce – Lack of coordination with existing environmental agencies implementation of necessary
energy – Lack of clear responsibility and ownership for the national energy efficiency agenda policies and interventions
consumption – Unclear regulatory framework and specific guidelines at the national level, to drive across entire transport sector
environmental protection policies ▪ Existing stock of infrastructure
– Limited incentives to adopt green energy alternatives (e.g., solar powered lights) was not designed with energy
▪ Existing Infrastructure efficiency in mind, limiting
– Limited ability of current infrastructure to accommodate low/zero emission vehicles ability to adopt newer
– Large fleet of old and low efficiency vehicles technologies
– Suboptimal consideration of environment protection and energy efficiency during the ▪ Current environmental
design process footprint and baseline is not
▪ Monitoring measured, hindering ability to
– Lack of monitoring and information on current footprint and energy consumption design and deploy necessary
interventions

Rd5 Optimize ▪ Procurement and contracting ▪ Review and upgrade of

transport assets’ – Excessive use of traditional contracting methods that do not incentive the optimization procurement and contracting
total cost of of TCO methods to take into account
ownership – Rigid implementation of procurement procedures that focus on the lowest costs, as operations and maintenance can
through effective opposed to the highest value (i.e., TCO) minimized total cost of ownership
delivery of new – Absence of incentives to apply innovative design and construction methodologies of assets
assets and ▪ Project Management ▪ MoT has limited project
efficient use and – Limited control of MoT on the full budget of the project leading to un-timely payment management resources and
maintenance of of contractors and associated delays of projects delivery capabilities , for both construction
existing ones – Lack of effective contractors’ performance monitoring, due to suboptimal PMO and maintenance, which leads to
resources, resulting in frequent delays and additional capital costs significant cost and time overruns
– Lack of accountability on monitoring and optimization of maintenance process ▪ Infrastructure investment
▪ Investment Planning decisions do not follow a robust
– Lack of fact based investment decisions in regard to construction and upgrade of roads stage-gate approach, resulting in
– Absence of a standard project evaluation and selection methodology based on sub-optimal allocation of
comprehensive business cases, including TCO (e.g., O&M) resources
– Limited adoption of stage-gate process to optimize investment decisions including
project management methodology

Rd6 Introduce private ▪ Regulation ▪ Existing regulatory framework is

sector – Weak regulatory framework and governance to allow for private sector participation not optimized to attract private
participation in (e.g., lack of regulation on charging users for roads, lack of regulation for transferring sector investors, which is
delivering and roads operations to private entity) amplified by lack of sector-wide
operating – Lack of guidelines on structuring and implementation of PPP solutions strategy for implementation of
transport assets – Limited coordination with the key stakeholders to optimize current regulations PPP solutions
▪ Private Sector Attraction ▪ Market is not attractive to private
– Complex financing structure necessary to achieve required IRR from private investors investors due to limited project
– Suboptimal participation of the local private sector due to lack of experience in visibility, complex monetization
concessions options and lack of proof of
– Limited market readiness to effectively drive and manage partnerships (including concept
banks, public and private sector companies) ▪ Lack of internal asset
– Limited visibility on information available to private investors on traffic demand shifting management unit responsible to
usage risk back to public/government entities identify suitable projects, attract
– Limited access to international arbitration entities and courts of law, which affects investors and drive
foreign investors decision implementation potentially leads
▪ Internal Privatization Capabilities to delay of PPP implementation
– No dedicated asset management unit within MoT to manage private sector
participation projects
– Lack of a systematic approach to select roads and services available for concessions
– Lack of visibility on the projects’ pipeline

Rd7 Build a ▪ Internal Organizational Health and Culture ▪ Limited interaction between
collaborative, – Lack of cross-departmental platform to share knowledge, learnings and best practices, departments within MoT limits
high-performing, amplified by a silo mindset potential synergies and leads to
and service- – Lack of an adequate and comprehensive employee performance management system sub-optimal performance
oriented – Lack of a transparent rewards and recognition system for high performers, in addition ▪ Culture of the organization does
organization to unclear separation of career paths and compensation systems not provide sufficient visibility to
– Absence of accountability among employees limiting the organization ability to employee performance , potential
perform as required career paths, and recognition
– Lack of sharing and thus buy in from employees towards the vision and mission system, limiting their
▪ External Customer Focus performance
– Lack of structured data collection and analytics (studies) on customers' satisfaction to ▪ Customer services department
create targeted intervention and initiatives within Ministry not empowered
– Lack of clear KPI to measure customer satisfaction with necessary tools and
resources to evaluate customer
satisfaction and deploy necessary
interventions

We have identified the key challenges for each transport organization
MoT challenges (8/8)
Rd8 Create an external ▪ Innovation Vision ▪ The ministry does not provide the
oriented – Lack of specialized experience and knowledge platform to monitor and identify necessary environment to
organization technological trends that may be beneficial (e.g., no leverage of experience from local monitor latest disruptive trends,
capable of universities) and deploy the new technologies
monitoring and – Limited budget to adopt innovative technological solutions impacting the road transport
selectively – Lack of standardized guidelines and clear processes on adoption of new technologies sector globally, de-facto limiting
adopting the advancement and
technological enhancement of the sector
changes for the
benefit of the
sector

Overall land and sea transport (PTA) challenges (1/7)
Pt1 Provide an ▪ Integrated planning and inter-entity coordination ▪ Limited integration between
effective and – Limited integration between the national spatial masterplan and PTA and other relevant
efficient public infrastructure plan within the kingdom entities, results in delays in
transport system – Limited interaction between PTA and different authorities to deliver deployment of effective
that is integrated effective multimodal transport network public transport systems
with other modes – Lack of clarity on the governance structure of the transport sector and on ▪ Only recently PTA took
and stakeholders the interaction with other stakeholders responsibility for the
(e.g., MoMRA) development of public
– Absence of a national integrated multimodal strategic Master Plan transport masterplan. Thus
resulted in delay in launch of
– Lack of clarity on PTA role and responsibilities
needed systems in major
▪ Regulatory, governance and capital deployment process
cities
– High capex investment necessary to develop optimum public transport ▪ Lack of an integrated traffic
system
database hinders the ability
– Lack of a single repository for information and data related to transport of PTA and the other
sector organizations to properly
– Lack of clear procedure on projects selection plan interventions and future
– Suboptimal regulatory flexibility to allow for market based pricing of public assets
transportation
– Limited capabilities of PTA and time necessary to build them

Pt2 Ensure adoption ▪ Standards and Regulation ▪ In its role of transport

and compliance – Lack of clear set of regulation on safety due to limited development of public regulator, PTA’s will need to
with the highest transport in KA review and update the entire
level of safety and – Lack of comprehensive plan that prioritizes safety initiatives and projects set of safety and quality
quality standards – Limited resources and budget to enforce safety standards standards across all transport
for the public – Lack of clarity on the mandate of PTA and extension of its responsibility modes
transport sector
▪ Monitoring, Reporting and Enforcement ▪ Significant coordination
between all relevant entities
– Limited resources (e.g., cameras) to control and enforce safety regulations
will be imperative to ensure
– Poor use of resources to control/ enforce safety regulations adequate monitoring,
– Limited compliance with international safety standards reporting and enforcement
– Limited data availability and use of data analytics to determine required public ▪ PTA should take a proactive
transport safety measures and enforce them, e.g., no centralized safety role in promoting safety
reporting system awareness across all
▪ Safety Culture and Awareness stakeholders, and training
– Local market is fragmented and not ready to adopt highest level of standards public transport operators on
– Difficulty in managing and operating the scattered market in the future all safety matters to enhance
– Limited coordination with other stakeholders (e.g., MoI) to enforce safety overall safety culture
regulations
– Poor safety culture and adherence to safety regulations (e.g., speed limits)
– Low consequences of safety violations

Pt3 Stimulate the ▪ Incentivisation mechanisms ▪ Public transport
use of public – Low incentive to use public transportation (e.g., no pollution charge, incetivization mechanisms
transport low parking fees) are currently severely
– Low cost of ownership and ridership, leading to a high car utilization lacking in the Kingdom,
rate and PTA should work with
– Balancing social aspect of public transportation with expected profit all relevant governmental
from operators entities to stimulate the
▪ Public Transport Infrastructure demand for public
transport
– Limited public transport availability, e.g., suboptimal taxi fleet, bus
network
▪ Existing public transport
infrastructure is extremely
– Limited integration and coordination across public transport systems limited, and will need
– Poor integration of public transportation during the urban planning significant boost to
phase resulting in suboptimal public transport network that is not represent a valid transport
integrated with remaining transport modes alternative to private cars

Pt4 Limit ▪ Policy and Regulation ▪ Current role of PTA in the
environmental – Unclear regulatory framework and ultimate responsibility on the national definition of environmental
pollution, level, to drive coordinated energy efficiency and environment protection and energy policies is
including policies unclear. As public transport
reducing energy – Lack of clear regulation and policy on emissions regulator, PTA will be
consumption, – Poor enforcement of existing regulation responsible to review
through existing regulations and to
– High government subsidies for fuel
development of draft environmental
the required
▪ Existing Infrastructure
protection and energy
specifications in – Large existing, low energy efficient fleet, requiring important capital efficiency standards and
cooperation with investments to upgrade policies for public transport
relevant – Limited ability of current infrastructure to accommodate low/zero emission systems
authorities vehicles ▪ The existing fleet and
– Limited budget for adoption of innovative technology to minimize infrastructure of the
pollution Kingdom represents a key
challenge and will need to
be upgraded to allow for the
implementation of energy
efficiency technologies in the
future

Pt5 Expand private ▪ Organizational Capabilities ▪ Limited experience in

sector participation – Limited experience of local public sector in driving partnerships implementing large-scale private
within the public – Limited capabilities of local investors in dealing with complex PPP projects sector projects, both from the
transport sector – Limited capabilities of the public transport sector to trigger successful PPP projects local public sector side as well as
the investor and operator side
– Lack of experienced operators for public transport systems
▪ Private Sector Attraction ▪ Public Transport projects are not
always attractive for private
– Low investment return of public transport projects sector participation, and PTA will
– Lack of visibility on the projects’ pipeline need to adjust contracts structure
– Concession structure has a sub-optimal allocation of risk and return and regulatory framework
– Suboptimal allocation of risk and return (e.g. usage risk) accordingly to create an attractive
▪ Regulatory Framework environment for investors
– Weak regulatory framework and governance to allow for private sector participation ▪ Overall roles and responsibility for
(e.g., for PPP) implementing public transport
– Limited appetite of foreign investors due to limited access to international arbitration projects will need to be clarified
entities and courts of law and coordinated across entities to
– Suboptimal participation of the local private sector in segments of the value chain due ensure efficient implementation
to limited favorable localization regulations
▪ Governance
– Lack of clarity on PTA mandate in regard to private investments
– Lack of clarity in role of PTA during implementation of PPP projects
– Suboptimal coordination with other entities (MoMRA, municipalities, MoF)

Pt6 Develop a regulatory ▪ Regulatory Framework ▪ Drafting an updated regulatory

framework for the – Weak regulatory framework for the public transport sector framework and standards for the
public transport – Lack of clarity of PTA responsibility vis-a-vis with other entities public transport sector
sector ▪ Organizational Capabilities (transportation law) is currently
underway and will pave the path
– Time necessary to build organizational capabilities in different functions to manage the for efficient implementation of
overall public transport system, e.g., setting standards, managing contracts, define
public transport systems across
regulations, etc.
the Kingdom
– Lack of cross functional expertise to develop regulations for public transportation ▪ Due to the young nature of the
sector in KSA
organization, PTA will need to
▪ Local context invest heavily in building
– Scattered landscape of small operators and lack of a national champion capabilities for its employees to
– Difficulty in generating one single solution for operating models of public transport ensure efficient performance
operator across the Kingdom ▪ The fragmented local market
context provides further
challenges in the development
and implementation of common
standards and regulations for
public transport systems

Pt7 Build an high ▪ Lack of knowledge platform to share and adopt innovative solution across ▪ The rapid development
performing the Kingdom and spread of disruptive
organization ▪ Lack of standardized guidelines from PTA to adoption new technologies technologies in the
able to manage by new operators transport sector will require
and properly ▪ Limited budget to adopt innovative technological solution from operators PTA to allocate dedicated
regulate the resources to the
adoption of monitoring of new trends
innovative ▪ In its position of regulatory
technologies in authority PTA should lead
the public the development of a
transport sector standardized set of
guidelines to promote and
ensure the adoption of
innovative technologies

Rail sector (SAR/SRO) challenges (1/11)
Objective(s) Challenges across major themes Key takeaways
R1 Efficiently and ▪ Infrastructure Planning ▪ Limited availability of historical

effectively connect – Limited availability of historical data and information to act as a basis for traffic data presents a great
the centers of planning and identification of demand generators challenge as it leads to
economic activities of – Limited coverage of current network to serve the potential demand inefficient network planning
the Kingdom by – Building non profitable and non-sustainable links due to limited visibility and ▪ There is limited coordination
developing strategic political bias between all relevant entities
rail infrastructure which results in a transport
– Lack of available funds and funding sources required to expand current network
(SAR) network that does not
to connect all current and future socio-economic centers and meet future
demand compare to budget availability efficiently capture the benefits
of intermodal solutions
Establish a high ▪ Cross-entity Integration and Coordination
capacity and high – Limited integration between the national spatial masterplan and key transport
quality railway infrastructure within the kingdom (e.g., inadequate railway connections to
connection between industrial hubs)
Dammam and Riyadh – Limited visibility of other entities development plans (e.g. MoMRA, MEIMR, etc.)
which is integrated – Suboptimal use of intermodal solution to effectively and efficiently move
with other transport passengers and freight across the Kingdom
modes (SRO)

R2 Improve regional ▪ Suboptimal technical standards homogenization across GCC countries ▪ Rail network between KSA
connectivity ▪ Limited coordination with other neighbor countries to plan and deploy and neighboring countries
through infrastructure properly is currently non-existent
integrated and future plans will need
railway networks to be coordinated across
with neighboring all countries as a
countries to responsibility of MoT, SAR
facilitate social, should proactively
industrial and participate to the decision
commercial making process to advise
activities (SAR) and inform the Ministry

R3 Integrate railway ▪ Existing infrastructure ▪ Integration of the SAR and SRO

services within – Suboptimal physical integration between the different networks (in particular SAR, SRO) network will represent a key
themselves and with including missing links and lack of technical homogenization challenge for the rail sector
other transport – Inconsistent asset registry information across different networks limiting the ability to size ▪ Unclear governance and
modes to ensure the required integration costs organization structure due to
efficient logistics – Limited multimodal logistic and cargo zones across the Kingdom, e.g., limited capacity on on-going rail sector reform
operations in the Dammam and Riyadh dry ports effort coupled with a limited
Kingdom (SAR) coordination across relevant
▪ Capabilities, governance and regulations
stakeholders will increase the
– Lack of clear and comprehensive indication on railway sector reform and transformation, uncertainty for the planning of
Ensure coordination, including future governance, role and responsibilities for each of the existing entities
the network expansion
interoperability, and – Integration of regulation between railway sector, PTA and other stakeholders ▪ There is a high risk of budget
interconnectivity – Limited interaction between different authorities to deliver effective multimodal transport constraints ultimately driving the
between SRO and network (e.g., passenger ‘air-road/rail' and freight ‘rail-road’) future decisions on the rail
SAR network (SRO) – Limited knowledge and experience on railway and interfaces operations sector and its expansion
– Lack of sector wide governance clarity to support the integration of the rail sector i.e. MoT
vs. PTA vs. SRO vs. SAR
▪ Planning and resources deployment
– Budget allocation needed to integrate SAR and SRO network, in addition to needed
resources
– Limited distance of shipments to final destination may prevent multi-modal transport to
be competitive (e.g., below 600 km shipping distance, cost of mode transfer may result
higher than road shipment)
– Absence of a national integrated multimodal strategic Master Plan

R4 Strive to operate ▪ Safety Culture and Awareness ▪ Safety culture represents an
the safest railway – Reactive vs. proactive safety culture important challenge for the
network in MENA – Safety culture and adherence to safety regulations (for passengers, rail sector, along employees,
(SAR) employees and involved entities) contractors and end-users
– Limited implementation of safety standards due to the limited organization ▪ The monitoring and
maturity enforcement of safety
▪ Monitoring, reporting and enforcement regulations will need
Ensure safety on significant cooperation
the railway
– Suboptimal procedures and monitoring of safety regulations for the railway
between various entities to
sector in the Kingdom
network system ensure adequate
(SRO) – Limited budget to implement safety interventions (e.g., fencing the whole implementation, especially
network to avoid animals trespassing)
considering the particular
– Coordination with MoI to ensure the protection of SAR assets context under which KSA rail
– Lack of means and tools of safety enforcement is operating (e.g. harsh
– Lack of a implementation of the prioritized intervention plan (based on weather conditions)
impact and cost) to address current SAR safety risks
▪ Local context
– Geographic and morphologic conditions in the Kingdom (e.g. difficult
maintenance of fences, CCTV, etc. due to harsh climatic conditions)

R5 Contribute to ▪ Limited alignment between railway sector development plans and plans for ▪ The integration of railway
improve urban other stakeholders, such as MoMRA and relevant municipalities infrastructure and planned
mobility through ▪ Limited communication between SAR, PTA, and other relevant stakeholders public transport systems is a
better integration during urban development of public transportation critical issue and will be a
and coordination of responsibility of Public
rail infrastructure Transport Authority as a
with urban planning regulator of the system.
and public transport However, SAR/SRO should
(SAR) proactively participate to
the development process to
guarantee the highest
Trigger public efficiency and integration of
transport demand its assets
and support
passenger railway
transport by
subsidies (SRO)

R6 Contribute to the ▪ Regulatory Framework ▪ There is limited visibility on the

reduction of CO2 – Unclear regulatory framework and specific guidelines on the national level, owner of the overall energy
emission rates by regarding environmental protection and energy consumption targets efficiency agenda on the
offering an energy – Lack of national and sector specific guidelines in regards to environmental national level, and eventually
efficient mode of protection and energy consumption targets how it affects the overall
transport (SAR) ▪ Organizational Capabilities transport sector and the rail
sector more particularly.
– Limited competencies and tools to implement energy efficiency initiatives within
the organization ▪ SAR/SRO can benefit by
Reduce air coordinating with relevant
pollution including ▪ Financial Requirements
entities and creating energy
minimizing energy – Prohibitive Capex requirements to electrify the existing network and avoid use of efficiency initiatives that align
consumption for diesel engines and renew rolling stock fleet with overall transport sector
railway services policies and national targets
(SRO) ▪ Organizational capabilities will
need to be built up, in
collaboration with best-in class
partners to be able to
efficiently implement
suggested initiatives

R7 Realize maximum Project Management and Oversight ▪ The establishment of a

return on assets ▪ Limited implementation of a stage-gating process in project selection and evaluation dedicated project management
including total cost ▪ Lack of effective contractors’ performance monitoring, due to suboptimal PMO office within SAR, empowered
of ownership capabilities, resulting in additional capital costs with necessary resources, will
optimization (SAR) ▪ Availability of local qualified suppliers and contractors to establish a long term ensure effective project
relationship governance and delivery, from
initial project selection, to
Maximize SRO
▪ Sub-optimal maintenance procedures to optimize cost of maintenance contracting and a procurement,
revenues from a ▪ Excessive use of traditional D-B-B methodology in project contracting, rather than and project oversight and
variety of sources to allowing alternative solutions monitoring
reduce dependence Asset Financial Management ▪ A centralized strategic
on public funding ▪ Limited flexibility in pricing railway services at market price investment unit within SAR/SRO
(SRO) ▪ Limited leveraging of alternative revenue streams (e.g. real estate land bank, stations can allow the organization to
FM) maximize its revenue, despite
limited flexibility in managing
core and alternative revenues
streams
▪ Greater flexibility on pricing the
services at market level is critical
to ensure future sustainability of
the sector

R8 Diversify ▪ Regulatory Framework ▪ Railway sector projects are
financing – Lack of guidelines on structuring and implementation of PPPs challenging for private
sources to solutions sector participation due to
minimize – Weak regulatory framework and governance to allow for private the high capital costs
reliance on sector participation associated with the
public funding ▪ Private Sector Attraction construction of the asset
(SAR) – Complex financing structure necessary to achieve required IRR from ▪ The establishment of an
private investors (e.g. high capex investments may require co- investment unit could
participation from private and public sectors) provide visibility of the
Increase private projects suitable for private
sector
– Limited appetite of foreign investors due to limited access to
sector participation in the
international arbitration entities and courts of law
participation in pipeline, and promote the
delivering – Limited number of PPP attractive projects in the pipeline opportunity to suitable
railway services – Limited visibility on information available to private investors on traffic investors
(SRO) demand shifting usage risk back to public/government entities
– Limited capabilities of the public and local private sector to engage in
successful PPP projects

R9 Establish a world Railway Sector Reform ▪ Completion of the rail
class business ▪ Absence of a clear business model across the railway sector sector reform is critical to
model to deliver ▪ Implementation of Resolution 381, and the ambiguity of SAR's business clarify full role and
highly efficient model responsibilities of SAR and
railway services SRO and their associated
(SAR) operating model and
business proposition
Re-organize
SRO and SAR to
a single railway
organization
(SRO)

R10 Foster a Customer Experience ▪ Customer experience is a
customer- ▪ Absence of clear SAR/SRO value proposition vis-à-vis other transport key factor impacting the
focused culture modes performance of SAR and
by delivering ▪ Limited budget to upgrade customer's experience and satisfaction SRO. The establishment of
superior railway ▪ Limited organizational capabilities experience in operating and a customer relations
services (SAR) maintaining railway services function, empowered with
necessary tools and
resources, will improve
Build up a high- customer experience and
performing delivery
railway network
(SRO)

R11 Implement ▪ Lack of specialized experience and knowledge platform to monitor and ▪ Both SAR and SRO do not
global best identify technological trends that may be beneficial to the railway sector have a dedicated unit that
practices in ▪ Lack of standardized guidelines on adoption of new technologies manage innovation and
technology and ▪ Limited budget to adopt innovative technological solutions new technologies
innovation to ▪ The establishment of a
improve sector dedicated innovation unit
performance within the organizations is
(SAR & SRO) necessary to ensure the
development of a modern
and efficient rail industry,
in line with the global
innovative trends and
technologies

Port sector (SEAPA) challenges (1/9)
P1 Improving port ▪ Infrastructure Planning and operations ▪ Challenges show SEAPA opts for
efficiency and – Limited information available on projected volume of freight from/to KSA ports capital intervention as opposed
productivity: Provide – "Imbalance ports capacity between west and east cost “ to operational improvement to
efficient and – Limited ability to improve capacity without recurring to capex investment increase capacity
effective ports – Limited adoption of innovative technology to improve and streamline ports' operations ▪ Limited availability of relevant
network that is – Operational inefficiencies at ports across different modes (i.e. inefficient border information and forecasts limits
integrated with the clearance process for goods and people) ability to appropriately plan for
other transport – Limited budget for capacity expansion projects capacity expansion
modes, to connect – Absence of specialized logistic and cargo zones across the Kingdom ▪ Unclear governance as well as
the national ▪ Governance and regulations limited coordination across the
economy to the – Suboptimal regulations that manages the relationship between terminal operators and relevant transport sector
global market the port management organizations prevents a fully
– Limited coordination between SEAPA and other transport entities, e.g., SAR integrated planning of the ports
– Limited integration between the national spatial masterplan and key transport infra- sector with the other transport
structure within the kingdom (e.g., inadequate railway connections to ports) modes
– Lack of clarity on role of different transport assets in delivering an integrated logistics
value proposition (e.g., JIP vs. KAP)
▪ Local market and context
– Limited development and focus on partnership with sea liners
– Fragmented and sub-scale port operators (within same port), preventing scale critical
to drive operational efficiency through resources coordination with port management
– Strong preference to use other neighboring ports due to geographic location and
lower slot and warehouse costs

P2 Maintain Port ▪ Standardization of Safety Processes and Regulation ▪ Due to the fragmented
Safety: Ensure a – Suboptimal safety regulations for KSA ports nature of port operators,
safe – Limited compliance with international safety standards standardization of safety
environment for – Lack of safety systems standardization due to the fragmented market procedures and
people, ▪ Reporting, monitoring and enforcement regulations represent a key
property, and challenge to the overall
cargo and
– Suboptimal procedure to monitor and enforce safety standards across safety performance of the
ports
address impacts ports system
on surrounding – Lack of clear procedures for monitoring and reporting safety ▪ SEAPA will also need to
communities in performance and violations e.g., no centralized safety reporting
improve its monitoring and
collaboration system to ensure consistent reporting across ports
reporting system through
with other – Limited budget dedicated to safety monitor and enforcement creation of a dedicated
agencies – Limited data availability and use of data analytics to determine safety unit
required safety measures and enforce them

P3 "Incorporate ▪ Governance ▪ There is currently no clear

environmental – Lack of clarity of SEAPA' s role as a regulator for environmental aspects on owner for the environmental
stewardship role: operators and sea liners protection and energy
Distinguish the ▪ Standards and Regulation efficiency policies on a national
Kingdom’s ports as – Unclear regulatory framework and ultimate responsibility on the national level, level
leaders in environ- to drive coordinated energy efficiency and environment protection policies ▪ Role of SEAPA as regulator for
mental stewardship environmental aspects is
– Limited adoption of international standards
and compliance by unclear and prevents adoption
implementing – Significant capital investments required to upgrade current assets and make
of standards and regulations
practices that them more fuel efficient
for the ports industry
minimize or ▪ Organizational Capabilities
eliminate environ- – Absence of a dedicated unit responsible for environment within SEAPA
mental impacts – Lack of a clear strategy on energy and environmental protection and initiatives
and health risks of to be implemented
port operations – Limited data available to proper plan environmental and energy initiatives
and development – Limited incentives to adopt energy efficient technologies
on employees, – Limited resources dedicated to environmental protection enforcement
workers, and
communities"

P4 Design and ▪ Governance ▪ The governance of the
enforce the – Sub-optimal strategy on corporatization and separation of the two transport sector in general,
appropriate SEAPA main functions and ports sector more
concession and – Unclear mandate and authority for the different regulatory entities specifically, is unclear
contracting (SEAPA vs. PTA) resulting in a reduced ability
structures to – Lack of clear governance structure, mandate and authority for the of SEAPA to effectively
optimize ports holding company negotiate concession
total cost of agreements and optimize
– Lack of authorization and approval from the relevant stakeholder to
ownership costs associated with it
proceed with the separation (e.g. MoF)
▪ Project Management and Oversight
▪ Enhancing organizational
capabilities and
– Lack of effective contractors’ performance monitoring, due to empowering them with
suboptimal PMO capabilities, resulting in additional capital costs
necessary resources, will
– Excessive use of traditional D-B-B methodology in project contracting, ensure effective project
rather than allowing alternative solutions (e.g., D-B-B-M) governance and delivery,
– Rigid procurement regulations that focus on the lowest costs, as from initial project selection,
opposed to the highest value to contracting and a
(i.e., TCO) procurement, and project
oversight and monitoring

P5 Maintain strong ▪ Lack of flexibility in pricing concessions for ports' operations ▪ Limited authority and
and sustainable ▪ Limited use of alternative revenue generation opportunities flexibility in the use of the
financial health: ▪ Rigid regulations preventing SEAPA to adopt innovative solutions for revenue generated by
Ensure that local revenue generations or modify existing contracts SEAPA increase reliance on
port authorities public funding while
are financially reducing accountability for
self-sustaining the maximization of the
and fiscally revenue sources
strong ▪ The proper design of
financial flows between
SEAPA and service
providers will minimize
reliance on public funding

P6 "Improve Organizational Capabilities ▪ Improvement of the
Organizational ▪ Limited availability of skilled experience personnel to meet the expanding organizational design
Effectiveness: future demand (separation of regulatory and
Create and ▪ Lack of continuous improvement process operational functions) is
manage a safe, ▪ Silo mentality across SEAPA departments that prevents improvement of the critical to ensure higher
effective, and organization performances of the sector
efficient ▪ Talent recruitment and a
organization that strong performance culture
fosters an should become a priority in
inclusive, open, the organization
and team
oriented culture
and provides the
opportunity for
the Head Office
and individual
port
organizations to
contribute to port
compete-
tiveness"

P7 Enhance Customer Experience ▪ The establishment of a
customer focus ▪ Lack of data and information to monitor customer behavior and dedicated and capable
within the head satisfaction customer service function
office and ▪ Lack of specific customer oriented programs (e.g. customer satisfaction) within SEPA is critical to
individual port ▪ Lack of dedicated unit to customer interaction improve customer
organizations satisfaction rate and build a
customer centric
organization and culture

P8 Integrate Governance ▪ Lack of a clear
stakeholders into ▪ Lack of clarity on SEAPA governance and interaction with the broader coordination entity and
strategy transport community mechanism prevent the
development ▪ Lack of external stakeholder plan development of the ports
and implemen- ▪ Lack of internal stakeholder plan sector in full integration
tation ▪ Lack of formalized committees dedicated for collaboration between with the broader transport
transport sector entities sector
▪ Lack of clarity on governance of the transport sector ▪ The establishment of a
coordination committee
(responsibility of MoT)
where SEAPA will represent
a key stakeholder, will
ensure the constant
alignment of future
strategy development and
implementation

P9 Promote ▪ Organization capabilities and operating models ▪ Limited organization
innovative – Limited flexibility of concession structure to modify contracts in case of capabilities coupled with
solutions to adoption of new technology the rigid operating model
facilitate – Limited use of business cases methodology to test feasibility and prevent a greater
operational benefit of adopting new technologies commitment to new
efficiency at each – Special expertise is required to collect, evaluate and select technologies
port technologies for the benefit of ▪ The establishment of a
the sector dedicated innovation unit
– Lack of data sources availability to stay up to date in technology within SEAPA, can support
the monitoring and
– Lack of interaction with the accelerated technological market
adoption of new
– Lack of standardized and formalized information sharing practices to technologies for the
materialize ideas into initiatives
benefit of the industry

Air transport (GACA) challenges (1/11)
Objective Challenges Key takeaways
A1 Establish air links to ▪ Internal and external stakeholder coordination and cooperation ▪ Limited and irregular interactions
support broader – Suboptimal integration with MoT, SAR/SRO and PTA to benefit truly multi-modal hubs, between different stakeholders
economic growth delivering point to point connectivity between airports and urban centers and across the across the sector lead to sub-
Kingdom optimal planning and inefficient use
– Limited visibility on multi-modal assets to deliver the most efficient transport mode for Saudi of multimodal solutions (weak
key centres interfaces)
▪ Existing air infrastructure network ▪ Existing air infrastructure is
– Lack of a systematic way of identifying population centers of key importance to KSA unbalanced across the Kingdom,
– Limited cargo cities to catalyze connectivity with global activity centers with limited visibility into future
– Insufficient links with major population and activity centers across the globe demand generators to plan
– Suboptimal distribution of air links across different airports in KSA expansions accordingly
– Limited contribution of some airports to regional development due to suboptimal size/flows
and/or location
– Suboptimal operational integration and efficiency of customs and passport control in key
airports limiting existing airport capacity and ability to add more links
– Suboptimal sizing of airports airside facilities in particular (parking slots, terminals, handling
systems, etc...) to handle current/future demand
▪ Planning of future network
– Limited number of bilateral agreements to facilitate links setup with key population centers
– Suboptimal marketing and outreach to tap into latent demand across key centers
– Lack of a systematic way to identify capacity additions/expansions for airports and cargo cities
– Lack of a systematic way of assessing socio-economic impact when developing/expanding
airports

A2 Facilitate religious ▪ Inter-entity Coordination ▪ Hajj visitors represent a unique

tourism to grow – Suboptimal coordination between MoHajj, GACA and other key stakeholders to manage challenge for airports, airlines and
KSA aviation sector influxes, during Hajj period the overall air infrastructure, due to
– Lack of integrated planning across multi-modal provider to facilitate flow of passengers the high influx of people during a
from/to airport, e.g., Taif airport not connected through rail but will become Hajj airport by short period of time
2020 ▪ Limited coordination between
– Difficulty in obtaining Umrah visa relevant stakeholders, namely
▪ Operational Readiness Ministry of Hajj, regarding future
– Suboptimal operational readiness to handle massive variability and influx of passengers during visitor projections, will hinder GACA’s
the Hajj/Umrah seasons ability to deploy necessary
– Limited flexibility of the existing infrastructure to repurpose capacity and accommodate higher infrastructure and operational
volumes efficiency improvements to cope
– Lack of a systematic way to think about the integrated journey of Hajj/Umra pilgrims, e.g., bus with increased demand
shuttle from Medina airport is not available
– Suboptimal organization of key airports to facilitate and streamline Hajj/Umra experience

A3 Support KSA ▪ Local Capabilities and Training ▪ Development of training centers,

carriers, including – Limited availability of skilled technicians that do not allow for effective localization of core specifically focused on
new entries, to airline jobs maintenance, repair and
promote sector – Lack of adequate training to prepare talents for aviation industry operations, will drive towards the
employment and – Local culture limitations on developing broader local workforce, e.g., hiring Saudi females increased specialization and
passenger choice ▪ Existing Air Transport Infrastructure localization of skilled aviation
pf services and – Limited Origin-destinations to support demand of hub airports technicians
airfares. – Sub-optimal infrastructure to support Origin-Destinations journeys ▪ The regulatory adjustment of
▪ Regulatory Framework tariffs for new low-cost entrants
– High cost of entry for new airlines will encourage the proliferation of
– Suboptimal regulatory flexibility to allow for market based pricing of airports services (both air links and support the success
freight and passengers) of new carriers
▪ Limited flexibility of pricing
mechanisms is reducing the ability
to effectively market the
Kingdom’s airports

A4 Achieve the highest ▪ Organizational Structure and Governance ▪ Risk of suffering from a generational
level of aviation – Support functions over-empowered vis-à-vis line functions for critical decisions regarding gap in technical capabilities due to
safety, including full technical staff (e.g. HR makes final decision on hiring and training inspectors) under-investment in training of new
compliance with – Limited budget allocated to training new inspectors and versing them into the latest resources
international safety technologies of air safety and navigation ▪ Risk of deteriorating air safety with
standards – Difficult career progression for inspectors, whereby promotions are directly linked to trainings increased workload (i.e. larger
concluded; training often not systematically provided airports, more/bigger carriers
– Over-reliance on older generation of inspectors and service-providers for training of the entering the Kingdom) due to
younger class of technical inspectors suboptimal approach to hiring and
▪ Standardization retention necessary talent
– Limited capabilities at regional and domestic airports to consolidate key procedures into
standardized airport specific operations and safety manuals
– Large workload for GACA (vs. workforce size), reducing speed at which smaller airport get
certified (GACA certified six out of 27 airports to date)
▪ Monitoring & Reporting
– Limited availability of resources results in varying sample size for inspecting various parts of
the system and could lead to sample sizes that drive lower confidence levels across certain
ICAO critical elements

A5 Minimize ▪ Data collection and reporting ▪ Current airports in KSA do not

environmental – Limited information and data available to monitor and intervene on environmental protection monitor or track environmental
impact and reduce and energy efficiency footprint of their operations, which
energy ▪ Regulation limits their ability to define and
consumption by – Lack of policy to minimize/limit environmental impact deploy targeted interventions
adopting – Lack of clear policy on energy consumption ▪ There is no clear owner of overall
international – Lack of supporting regulation to create clean energy investment opportunities for private environmental protection vision and
standards, investors mission in the Kingdom, resulting in
innovative – Limited incentives to adopt energy efficient technologies unclear policies and regulations
technologies, and ▪ Organizational Awareness and resources towards the environment
sustainable energy – Limited budget dedicated to environmental protection and energy efficiency solutions in the ▪ Presence of a dedicated and
sources aviation sector empowered environment unit
– Lack of dedicated knowledge platform to develop, support, and implement energy efficiency within GACA will support mission
solutions towards greater environmental
sustainability

A6 Design and enforce ▪ Project Management Capabilities ▪ Limited PM capabilities prevent

the appropriate – Limited capabilities to monitor the implementation of operations as per GACA standards GACA (and in the future SAVC) to
concession and – Limited project management capabilities to ensure respect of projects' schedule and budget adequately monitor capital projects
contracting – Sub-optimal maintenance procedure to minimize life cost of assets leading to risk of delay and budget
structures to ▪ Infrastructure Investment Planning overruns
optimize assets – Limited adoption of stage-gate methodology to optimize investment decisions ▪ Investments are currently carried out
total cost of – Sub-optimal standards for project evaluation based on comprehensive business cases, without a robust stage gate process
ownership including TCO (e.g., O&M) to guide and scrutinize decisions,
– Sub-optimal concession structure focusing on O&M costs resulting in inefficient deployment of
capital resources

A7 Reduce reliance on ▪ Regulatory Framework ▪ The existing PPP and concession

public funding by – Sub-optimal structure of PPP contracts and concessions due to lack of standardized PPP framework is not optimally
increasing framework structured nor standardized to
participation and – Lack of clarity on GACA role as PPP promoter for the aviation industry accelerate and attract private sector
improving strategic ▪ Private Sector Attraction investment
partnership with – Limited leveraging of alternative revenue opportunities from existing assets ▪ There is no dedicated investment
the private sector – Unclear role and mandate of newly established National Centre for Privatization unit at GACA to manage future
– Limited visibility of opportunities to private sector, sector corporatization and
▪ Monitoring and coordination privatization projects
– Limited availability of data to perform analysis of existing contracts and apply lessons learned ▪ Airport master-planning guidelines
– Future coordination with newly formed privatization committee do not contain analysis on
alternative revenue generation
options, thus limiting private sector
attraction for future airport assets

A8 Reaffirm GACA's ▪ Regulatory Framework ▪ The civil aviation sector in the

role as the aviation – Lack of clarity on GACA roles and responsibilities with external stakeholders Kingdom is currently undergoing
regulatory authority – Lack of clarity on future governance and framework of aviation sector fundamental organizational changes
focusing on policy, – Lack of coordination with other transport entities within the MoT umbrella ▪ As the separation between the
regulations and – Lack of adequate budget to carryout regulatory responsibilities airport holding company and the
compliance. regulating entity reaches
completions, GACA will need to
define and detail the extent of its
mandate, authority and
responsibility, as well as its
interaction with all external
stakeholders

A9 Integrate aviation ▪ Coordination and alignment with other entities ▪ Current coordination with other
sector – Lack of interagency committees or central authority to coordinate development and projects, transport entities is limited, the
development with resulting in limited integration of existing plans of all transport modes development of intermodal logistics
other transport – Lack of clarity on intermodal decision making process zones, a key pillar of Vision 2030,
modes in the – Lack of clarity on governance of transport sector will require extensive cooperation
Kingdom and collaboration from GACA and all
other transport entities

A10 Enhance overall ▪ Internal Customer Service Capabilities ▪ Limited irregular interaction between
customers’ airport – Lack of customer satisfaction strategy different stakeholders in the
experience – Limited data and resources to monitor and intervene on airport operation including customer transport sector leads to sub-
experience optimal planning (weak interfaces)
– Lack of international customer service experience in airport management structure and inefficient use of multimodal
– Limited "private sector mindset" that supports customer excellence solutions to be integrated with the
▪ Regulation and Monitoring air transport
– Limited control on airport operations (i.e. operator responsibility) ▪ Existing air infrastructure network is
– Sub-optimal standards and regulations resulting in poor operating procedure to drive unbalanced across the Kingdom,
excellence with limited visibility into future
demand generators to plan
expansions accordingly

A11 Adopt global best ▪ Organizational Capabilities ▪ In the continuously changing

practices in – Limited knowledge of innovative technology for the aviation sector aviation sector, GACA should invest
technology and – Limited adoption of new technology due to poor decision making process in adopting global best practices in
innovation to – Lack of clarity on GACA's authority on adoption of new technologies (e.g., smart phone technology and innovation
improve sector check-in, e-boarding cards, etc…) ▪ Today, GACA does not have any
performance and – Lack of standardized guidelines for adoption of new technologies from airports dedicated resource responsible for
customer monitoring the new trends and
experience recommend the adoption of
innovative technology

Contents

▪ NTS 2030
▫ Challenges
▫ Initiatives
117
The sector spent more than SAR 400Bn on transport infrastructure
in the past 10 years
Annual KSA Transport and Infrastructure Spend
SAR Billion
65 67
63
Annual Transport
52 infrastructure spend
includes projects,
programs and
initiatives to develop
35 roads, ports, railway,
airports, totalling
25 SAR 404Bn in the
24 24
past 10 years
19
16
14
2007 08 09 10 11 12 13 14 15 16 17E1
1 Expected spend based on 2017 budget – this exceptionally includes postal services and industrial cities
SOURCE : KSA Ministry of Finance Budget Reports 118
This resulted in a robust network across modes
Roads Airports
27 airports1
Dammam KM 66,000 inter-city roads under Dammam
MoT, including: Medina

4 int’l 9 regional 12 domestic
Medina Riyadh Riyadh
Jeddah
Mekah • KM 5,000 – Expressways Jeddah
Mekah
86m passengers (2016)

KM 144,000: intra-city roads under
MoMRA
1m freight tons (2015)
North-South rail Portion of non-oil sea trade

Rail Ports
KM 2,750
Jubail
17%
KM 4,500 total track length 1% Ras Tanurah2
Dhuba
10 ports for (non-oil) trade
1%
Ras Al-Khair ¬0%
Dammam
Dammam- 1.2m passengers (Riyadh-Dammam) 3% Yanbu

KAP
33%1
HHR
Riyadh rail
KM 1,350
1%
44%
TEU 7.8m of handled vol. (2015)
TEU 600,000+ (Riyadh-Dammam)
KM 450 Jeddah
Jazan
East-West
SAR 4.5bn in ports rev. (2015)
+7m metric tons minerals
¬0%
Shipping
Lane
1 Including 2 airports with no present commercial activities; Rabigh (landing strip), and Nejran (currently dedicated to military operations) 2 Saudi Aramco port
SOURCE: Ministry of Transport - Deputyship of Roads, SAR, SRO, General Authority of Civil Aviation, Saudi Ports Authority 119
119
Current transport network: 66,000 km of paved roads and 144,000 km
of basic intra-city national roads
New primary roads
KM 66,000 national (inter-city) roads under

purview of Ministry of Transport, including:
Dammam
• KM 5,000 of highways
• KM 12,000 of dual carriageways
Medina
• KM 49,000 of single carriageways

Riyadh
Jeddah
Mekah
• KM 144,000 of basic roads
In addition to KM 144,000 of intra-city roads under

the purview of Ministry of Municipality and Rural Affairs
SOURCE: Ministry of Transport - Deputyship of Roads 120

Current transport network: 4,500 km of rail
Existing rail links Passenger stations
North-South rail
KM 2,750 Mineral stations
Freight stations
In 2016:
Dammam-Riyadh
KM 1,250 1.2m passengers between Riyadh and Dammam
HHR
KM 450 +7m metric tons of minerals
+600,000 TEUs between Riyadh and Dammam
SOURCE: Ministry of Transport - Public Transport Authority, SAR, SRO 121

Current transport network: 27 international, regional and
domestic airports
27 airports1
4 international airports
9 regional airports
12 domestic airports
Dammam
86m passengers, 1m freight tons annually

King Khalid International Airport (Riyadh) Passengers
Medina Riyadh
Freight (tons)
Jeddah 23,345,320 347,000
Mekah King Abdulaziz International Airport (Jeddah)
31,418,013 422,000
Prince Mohamed Bin Abdulaziz (Madinah)
6,566,889 8,000
King Fahad International Airport (Dammam)
9,681,631 128,000
1 Including 2 airports with no present commercial activities; Rabigh (landing strip), and Nejran (currently dedicated to military operations)
SOURCE: Ministry of Transport - General Authority of Civil Aviation 122
Current transport network: 10 commercial and industrial
ports (one private)
Portion of non-oil sea trade
Jubail
17%
Ras Tanurah2
1%
1% Dhuba Ras Al-Khair ¬0%
Dammam
10 ports for (non-oi) sea trade
3% Yanbu
TEU 7.8m of handled volumes (2015)

33%1
KAP
1%
44% SAR 4.5bn in ports revenues (2015)

Jeddah
Jazan
East-West
Shipping Lane ¬0%
1 some freight bound to Dammam port is handled at the Riyadh dry port
2 Saudi Aramco port
3 Under the direct purview of the Saudi Ports Authority
SOURCE: Ministry of Transport - Saudi Ports Authority 123

To better understand network performance and capacity requirements until 2030 we
considered key socio-economic aspirations of the Kingdom
Raise ranking in
Increase Nominal
Logistics Performance
GDP from 3.2
Index from 49 to 25
to 6 Trillion SAR
Increase investments
Increase private sector
from 3.4 to 9 contribution to GDP
Trillion SAR from 40% to 65%
Increase capacity to
welcome Umrah visitor
Increase FDI1
from 8m to 30m p.a.
from 3.8% to
1 Foreign Direct Investments
SOURCE: Centre for Economics and Business Research, The World Bank
5.7% of GDP 124
This allowed us to quickly identify potential improvement areas and bottlenecks;
overall network is well dimensioned to support future aspirations
Roads Airports
• Majority of main traffic corridors • The four international airports
will support future demand with Dammam
(incl. ongoing and planned
no expansion1 expansions) will accommodate all
Medina Riyadh future growth
• Few links will required upgrade Jeddah
Mekah
and expansion • Regional and domestic airports
could benefit from operational
optimization before expansion
Rail Ports
Jubail
• Future planned rail expansions Ras Tanurah1 • Ports’ capacity is largely enough
seem mainly strategic in nature Dhuba Ras Al-Khair Dammam to support future demand
Yanbu
• Priority should be given to KAP

• TEU 2m is required in the West to
projects that will enhance KSA Jeddah support the Kingdom’s aspiration
overall logistic capabilities (e.g., Jazan
of becoming a logistics hub
land-bridge) East-West
Shipping
Lane
1 While maintaining globally accepted service levels i.e. C or above

SOURCE: Ministry of Transport - Deputyship of Roads, SAR, SRO, General Authority of Civil Aviation, Saudi Ports Authority 125
125
Traffic demand on the roads network has been projected to 2030
and corresponding level of service analysed to identify stressed links
Context Approach Key takeaways
▪ Main transport corridors were identified as ▪ The methodology used to project traffic ▪ Along the major corridors, the Inter-city roads
the links connecting the Kingdom's major growth rate is the one from the Australian network, have a capacity that exceeds the current
centers of socio-economic activity (e.g., (Queensland) department of transport and demand
population centers, airports, industrial areas, it is based on an extrapolation (over- ▪ The existing network is capable of accommodating
agricultural areas) optimistic growth rates used on purpose) of the vast majority of the incremental demand
▪ Demand forecasts were conducted for those historical growth trends on the respective forecasted along the most important corridors by
corridors, to assess the need for further links up till 2030 2030
capacity developments ▪ Based on forecasted traffic values, and the ▪ The Riyadh-Taif-Mekkah-Jeddah corridor incurs a
respective links’ capacities, Levels of Service capacity issue in the future, especially on the
(LOS) from A to E were assigned to each Mekkah-Jeddah link
link’s utilization ratio
▪ Other links along main corridors may require
▪ Links with LOS D, or E are recommended for interventions on the long-term
capacity upgrade
▪ The data and counters on the Dammam-Jubail-Ras
Al Khair-Al Khafji3, and Jeddah-Yanbu-Duba-Ras Al
Shaikh corridors need revision
Assumptions
▪ Traffic data was extracted from MoT's traffic counters database and converted into pcu (passenger car units, based on HCM (Highway Capacity Manual)
▪ Capacities were calculated as per the Highway Capacity Manual, based on the links physical characteristics (e.g., speed limit, lanes width, number of lanes)
▪ No future projects were taken into consideration
▪ Forecast was done taking 2016 as the base year, unless indicated1
▪ Historical forecast was conducted, assuming a over-optimistic future growth rate which equals the highest YoY historical traffic growth rate at a certain link2
1 As comments on links, where 2016 data was unavailable for many counters 2 Many links' data was unavailable/inaccurate, therefore the highest growth rates of the relevant corridors
were adopted (indicated as comments on relative links' cells) 3 For Jubail-AlKhafji corridor, there were no traffic counters. Alternatively, the counter on Dhahran
expressway to Jubail was analyzed instead. However, data on that counter was incomplete and did not conclude accurate forecasts
Based on model’s current state analysis, inter-city network is highly effective, where
main corridors exceed the demand generated from the different centers of activity
PRELIMINARY
Utilization2 LOS2
Roads network1 Corridor (2016) (2016)
▪ Riyadh-Hofuf-Salwa-Batha 8% A
Key insights:
▪ Riyadh-Dammam-Bahrain 17% A ▪ Main corridors
are currently
▪ Riyadh-Buraydah-Hail-Gurayat 8% A
maintaining a
▪ Riyadh-Buraydah-Madinah-Yanbu 9% A LOS of ‘A’,
▪ Riyadh-Taif-Mekkah-Jeddah 17% A
▪ Interventions
should be limited
▪ Riyadh-Al Kharj-Abha-Jazan 14% A and specific to
links that will
▪ Dammam-Jubail-Ras AlKhair-AlKhafji3 35% A present issue in
the future (LOS D
▪ Dammam-Hafr Al Batin-Arar 9% A or E)
▪ Dammam-Hafr Al Batin-Buraydah 7% A ▪ An important
corridor;
▪ Jeddah-Madinah-Tabuk-Halat Ammar 9% A Dammam-Jubail-
▪ Jeddah-Yanbu-Duba-Ras Al Shaikh 9% A Al Khafji has
currently no
▪ Jeddah-JEC-Jazan 10% A traffic counters
▪ Tabuk-Sakakah-Arar 8% A
1 Green arrows correspond to corridors of LOS A,B, and C 2 Calculated through average of links within each corridor
3 No traffic counters between Dammam-Jubail-Ras AlKhair-Al Khafji
SOURCE: MoT traffic sensors data, Highway Capacity Manual, team analysis 127
Based on the road model’s demand forecast, future growth can be mostly
absorbed through existing network, with few interventions along a few corridors
PRELIMINARY
Utilization2 LOS2
Roads network1 Corridor (2030) (2030)
▪ Riyadh-Hofuf-Salwa-Batha 27% A
For the three
3 ▪ Riyadh-Dammam-Bahrain 58% C highlighted
2 corridors:
▪ Riyadh-Buraydah-Hail-Gurayat 53% B
▪ The most
▪ Riyadh-Buraydah-Madinah-Yanbu 23% B problematic link
is Makkah-
▪ Riyadh-Taif-Mekkah-Jeddah 1 85% D Jeddah. The new
direct highway
▪ Riyadh-Al Kharj-Abha-Jazan 59% C will improve LOS
on this link
▪ Dammam-Jubail-R. AlKhair-AlKhafji3 2 127% E
▪ Current traffic
1 ▪ Dammam-Hafr Al Batin-Arar 49% B counters on the
▪ Dammam-Hafr Al Batin-Buraydah 27% A
corridor is not
reliable; data
▪ Jeddah-Madinah-Tabuk-Halat Ammar 44% B needs to be re-
Capacity issues
assessed once
Data issues ▪ Jeddah-Yanbu-Duba-Ras Al Shaikh 2 33% A network
▪ Entire country roads network has been then analysed and stress- modelling is
tested through KSA transport model, and results are shown in
▪ Jeddah-JEC-Jazan 34% B complete
following sections of the document
▪ Tabuk-Sakakah-Arar 11% A
1 Green arrows correspond to corridors of LOS A,B, and C 2 Calculated through average of links within each corridor
3 Forecast is done for Dhahran-Jubail expressway. However, data is not sufficient to have an accurate forecast.
Road traffic projections (1/23)
PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 416 847 1,724 3,046
Riyadh-Hofuf (SW, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
carriageway) ▪ % utilization 9% 18% 36% 63%
▪ LOS A A B C
▪ Traffic volume 373 378 383 387
Riyadh-Hofuf- Hofuf-Riyadh (NE), Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
1
Salwa-Batha carriageway) ▪ % utilization 8% 8% 8% 8%
▪ LOS A A A A
▪ Traffic volume … 388 435 477
Hofuf-Salwa (E) (includes ▪ Design Capacity … 4,800 4,800 4,800
dammam-salwa traffic, Dual
▪ LOS A A A A
▪ Traffic volume 1,169 1,815 2,817 4,005
Riyadh- ▪ Design Capacity 7,200 7,200 7,200 7,200
Riyadh-Dammam (NE,
2 Dammam-
Bahrain
Expressway) ▪ % utilization 16% 25% 39% 56%
▪ LOS A A B C
SOURCE : MoT traffic counters data, team analysis 129

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume … 1,828 2,839 4,036
Dammam-Riyadh (SW, ▪ Design Capacity … 7,200 7,200 7,200
▪ LOS A A B C
▪ Traffic volume 707 3,727 5,787 8,227
2 Dammam-
Bahrain ▪ % utilization 7% 39% 60% 86%
Dammam-Bahrain (S, ▪ LOS A B C D
Expressway ) ▪ Traffic volume 2,121 2,283 2,458 2,607
▪ Design Capacity 7,200 7,200 7,200 7,200
▪ % utilization 29% 32% 34% 36%
▪ LOS A A B B
▪ Traffic volume 1,423 1,993 2,793 3,658
Riyadh-Majmaah (N,
3 Buraydah-Hail-
Gurayat
Expressway ) ▪ % utilization 20% 28% 39% 51%
▪ LOS A A B B

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 1,297 1,345 1,395 1,437
Majmaah-Riyadh (SE, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A A
▪ Traffic volume 292 615 852 1,105
Majmaah-Buraydah (W, ▪ Design Capacity 7,200 7,200 7,200 7,200
Riyadh- ▪ LOS A A A A
3 Buraydah-Hail-
Gurayat ▪ Traffic volume 368 468 595 721
Buraydah-Majmaah (E, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A A
▪ Traffic volume 296 997 3,357 8,867
Buraydah-Adwah (W, ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A C E

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 249 838 2,823 7,455
Adwah-Buraydah ▪ Design Capacity 7,200 7,200 7,200 7,200
(E, Expressway) ▪ % utilization 3% 12% 39% 104%
▪ LOS A A B E
Buraydah-Adwah (N, ▪ Design Capacity 7,200 7,200 7,200 7,200
Riyadh- ▪ LOS A A A A
3 Buraydah-Hail-
Gurayat ▪ Traffic volume 334 575 991 1,530
Adwah-Buraydah (S, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A A
Adwah-Hail (W, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 363 1,924 3,578 5,876
▪ Design Capacity 4,800 4,800 4,800 4,800
Hail-Baqaa (N, Expressway)
▪ % utilization 22% 40% 75% 122%
▪ LOS A B D E
▪ Traffic volume 167 562 1,893 5,000
Abu Ajram-Hail (S,
3 Buraydah-Hail-
Gurayat
▪ LOS A A A C
Abu Ajram-Tabarjal (N, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A
▪ Traffic volume Part of 3 … … …
Riyadh- ▪ Design Capacity Part of 3 … … …
Riyadh-Majmaah (N,
4 Buraydah-
Madinah-Yanbu
Expressway) ▪ % utilization Part of 3 … … …
▪ LOS Part of 3 … … …

PRELIMINARY
2016 2021 2026 2030

Majmaah-Riyadh (SE, ▪ Design Capacity Part of 3 … … …
Majmaah-Buraydah (W, ▪ Design Capacity Part of 3 … … …
Riyadh- ▪ LOS Part of 3 … … …
4 Buraydah-
Madinah-Yanbu ▪ Traffic volume Part of 3 … … …
Buraydah-Majmaah (E, ▪ Design Capacity Part of 3 … … …
▪ Traffic volume … 838 1378 2,053
Buraydah-Madinah (W, ▪ Design Capacity … 7,200 7,200 7,200
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 218 866 1,424 2,122
Madinah-Buraydah (E, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A A
▪ Traffic volume 318 524 862 1,283
Madinah-Buraydah (E) (1
4 Buraydah-
Madinah-Yanbu
direction, Expressway) ▪ % utilization 4% 7% 12% 18%
▪ LOS A A A A
▪ Traffic volume 267 439 653
Madinah-Yanbu (W, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A A
▪ Traffic volume 511 2,122 3,682 5,722
Riyadh-Taif- ▪ Design Capacity 7,200 7,200 7,200 7,200
5 Riyadh-Taif (W, Expressway)
Mekkah-Jeddah ▪ % utilization 17% 29% 51% 79%
▪ LOS A A C D

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 578 1,689 2,980 4,691
▪ Design Capacity 7,200 7,200 7,200 7,200
Riyadh-Taif (E, Expressway)
▪ % utilization 13% 23% 41% 65%
▪ LOS A A B C
▪ Traffic volume 743 1,030 14,28 1,855
Riyadh-Al Rowaidah (W, ▪ Design Capacity 7,200 7,200 7,200 7,200
Riyadh-Taif- ▪ LOS A A A A
5
Mekkah-Jeddah ▪ Traffic volume 662 1,187 2,128 3,397
Al Rowaidah-Riyadh (E , ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A B
▪ Traffic volume 606 998 1,644 2,451
▪ Design Capacity 7,200 7,200 7,200 7,200
Riyadh-Taif (W, Expressway)
▪ % utilization 8% 14% 23% 34%
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 501 1,163 2,351 4,126
▪ Design Capacity 7,200 7,200 7,200 7,200
Taif-Riyadh (E, Expressway)
▪ % utilization 8% 16% 33% 57%
▪ LOS A A B C
▪ Traffic volume … 1,351 1,428 1,492
Al Baha-Taif (unclear, ▪ Design Capacity … 7,200 7,200 7,200
Riyadh-Taif- ▪ LOS A A A A
5
Mekkah-Jeddah ▪ Traffic volume … 1,853 3,744 6,573
▪ Design Capacity … 7,200 7,200 7,200
Taif-Mekkah (W, Expressway)
▪ % utilization 13% 26% 52% 91%
▪ LOS A A C D
▪ Traffic volume … 1,412 1,533 1,637
▪ Design Capacity … 7,200 7,200 7,200
Mekkah-Taif (E, Expressway)
▪ % utilization 18% 20% 21% 23%
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume … 4,311 6,568 9,199
Mekkah-Jeddah (SW, ▪ Design Capacity … 12,000 12,000 12,000
▪ LOS A B C C
▪ Traffic volume … 5,832 11,785 20,689
Jeddah-Mekkah (NE, ▪ Design Capacity … 12,000 12,000 12,000
Riyadh-Taif- ▪ LOS A B E E
5
Mekkah-Jeddah ▪ Traffic volume 3,666 7,407 14,967 26,274
Mekkah-Jeddah (NW, ▪ Design Capacity 12,000 12,000 12,000 12,000
▪ LOS A C E E
▪ Traffic volume 3,281 6,629 13,394 23,513
Jeddah-Mekkah (SE, ▪ Design Capacity 12,000 12,000 12,000 12,000
▪ LOS A C E E

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 1,659 1,846 2,054 2,238
Riyadh-Al Kharj (S, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A A
▪ Traffic volume 1,530 2,556 4,269 6,436
Al Kharj-Riyadh (N, ▪ Design Capacity 7,200 7,200 7,200 7,200
Riyadh-Al ▪ LOS A B C D
6 Kharj-Abha-
Jazan ▪ Traffic volume 337 863 1,494 2,316
Riyadh-Wadi Addawaser (S, ▪ Design Capacity 4,800 4,800 4,800 4,800
Dual carriageway) ▪ % utilization 10% 18% 31% 48%
▪ LOS A A A B
▪ Traffic volume … 670 892 1,122
Wadi Addawaser-Riyadh (N, ▪ Design Capacity … 4,800 4,800 4,800
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

Sulayil-Riyadh (N, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A
▪ Traffic volume 443 813 1,492 2,426
Wadi Addawaser-Sulayil (N, ▪ Design Capacity 4,800 4,800 4,800 4,800
Riyadh-Al
Kharj-Abha- ▪ LOS A A A C
6
(cont’d) Wadi Addawaser-Khamis ▪ Design Capacity 4,800 4,800 4,800 4,800
Mushait (W, Dual
▪ LOS A A A B
▪ Traffic volume … 244 448 728
Riyadh-Khamis Mushait (N, ▪ Design Capacity … 4,800 4,800 4,800
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 953 1,749 3,211 5,219
Abha-Darb (N, single lane, ▪ Design Capacity 2,400 2,400 2,400 2,400
Riyadh-Al Kharj-
6 with dual carriageway at
Abha-Jazan
some places) ▪ % utilization 35% 73% 134% 217%
▪ LOS B D E E
Dammam- ▪ Design Capacity Part of 1 … … …
It’s a part of Riyadh-Hofuf-
7 Hofuf-Salwa-
Batha
Salwa-Batha corridor ▪ % utilization Part of 1 … … …
▪ Traffic volume 3,334 5,296 8,413 12,182
Dammam- ▪ Design Capacity 9,600 9,600 9,600 9,600
Dhahran-Jubail (N)
8 Jubail-Ras
(Expressway (4 lanes) ▪ % utilization 35% 55% 88% 127%
AlKhair-AlKhafji1
▪ LOS A C D E
▪ Traffic volume 211 1,096 1,907 2,969
Dammam-Hafr ▪ Design Capacity 4,800 4,800 4,800 4,800
Dammam-Hafr AlBatin (W,
9 AlBatin-Arar-
Gorayat
▪ LOS A A B C
1 No traffic counters are present between Dammam-Jubail-Ras AlKhair-Al Khafji. Alternatively, forecast is done for Dhahran-Jubail expressway. However, data is not sufficient to have an accurate
forecast.
PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 540 939 1,634 2,545
Hafr AlBatin-Dammam (E, ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A B C
▪ Traffic volume 279 683 1,670 3,415
Rafha-Arar (NW, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
Dammam-Hafr
AlBatin-Arar- ▪ LOS A A B C
9
Gorayat ▪ Traffic volume 198 344 599 933
(cont’d)
Arar-Rafha (SE, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A
▪ Traffic volume 421 732 1,274 1,984
Turaif-Arar (E, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A B

PRELIMINARY
2016 2021 2026 2030

Dammam-Hafr AlBatin (W, ▪ Design Capacity Part of 9 … … …
Dual carriageway) ▪ % utilization Part of 9 … … …
Hafr AlBatin-Dammam (E, ▪ Design Capacity Part of 9 … … …
Dual carriageway) ▪ % utilization Part of 9 … … …
Dammam-Hafr ▪ LOS Part of 9 … … …
10 AlBatin-
Buraydah ▪ Traffic volume 222 307 426 553
Hafr AlBatin-Majmaah (SW, ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A
Majmaah-Hafr AlBatin (N, ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

Majmaah-Buraydah (W, ▪ Design Capacity Part of 3 … … …
Dammam-Hafr
AlBatin- ▪ LOS Part of 3 … … …
10
Buraydah ▪ Traffic volume Part of 3 … … …
(cont’d)
Buraydah-Majmaah (E, ▪ Design Capacity Part of 3 … … …
▪ Traffic volume 1,404 2,473 4,355 6,848
Jeddah-Madinah (N, ▪ Design Capacity 7,200 7,200 7,200 7,200
Jeddah-
Madinah- ▪ LOS A B C E
11
Tabuk-Halat ▪ Traffic volume 1,688 2,485 3,657 4,983
Ammar
Madinah-Jeddah (S, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A B C C

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume … 516 999 1,693
Jeddah-Madinah (E, ▪ Design Capacity … 7,200 7,200 7,200
▪ LOS A A A A
▪ Traffic volume … 774 1,412 2,286
Madinah-Jeddah (W, ▪ Design Capacity … 7,200 7,200 7,200
Jeddah-
Madinah- ▪ LOS A A A A
11
Tabuk-Halat ▪ Traffic volume 625 811 1,053 1,298
Ammar (cont’d)
Makkah-Madinah (N, ▪ Design Capacity 7,200 7,200 7,200 7,200
▪ LOS A A A A
▪ Traffic volume … 1,464 3,055 5,501
Madinah-Makkah (S, ▪ Design Capacity … 7,200 7,200 7,200
▪ LOS A A B C

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 460 877 1,675 2,808
Madinah-Tabuk (N, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A B C
▪ Traffic volume 210 370 651 1,024
Tabuk-Madinah (S, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
Jeddah- carriageway) ▪ % utilization 4% 8% 14% 21%
Madinah- ▪ LOS A A A A
11 Tabuk-Halat
Ammar ▪ Traffic volume … 375 770 1,371
(cont’d) Madinah-Tabuk (SW, Dual ▪ Design Capacity … 4,800 4,800 4,800
▪ LOS A A A A
Tabuk-Madinah (NE, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

Jeddah-Madinah (N, ▪ Design Capacity Part of 11 … … …
Madinah-Jeddah (S, ▪ Design Capacity Part of 11 … … …
Jeddah-Yanbu- ▪ LOS Part of 11 … … …
12 Duba- Ras
AlShaikh ▪ Traffic volume 662 … … …
Jeddah-Yanbu (N, ▪ Design Capacity 7,200 … … …
Expressway) ▪ % utilization 11% … … …
▪ LOS A … … …
▪ Traffic volume … 841 1,362 2,003
Yanbu-Jeddah (S, ▪ Design Capacity … 7,200 7,200 7,200
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume … 1,071 1,886 2,965
Yanbu-Jeddah (SE, Dual ▪ Design Capacity … 7,200 7,200 7,200
▪ LOS A A A B
Umluj-Al Wajh (N, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
Jeddah-Yanbu-
Duba- Ras ▪ LOS A A A A
12
AlShaikh ▪ Traffic volume 130 189 275 371
(cont’d)
Al Wajh-Umluj (S, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A
Duba-Haql (N, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A

PRELIMINARY
2016 2021 2026 2030

Jeddah-Yanbu-
Duba- Ras Haql-Duba (S, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
12
AlShaikh carriageway) ▪ % utilization 3% 4% 5% 7%
(cont’d)
▪ LOS A A A A
Jeddah- It’s a part of Riyadh-Taif- ▪ Design Capacity Part of 5 … … …
13
Makkah-Taif Makkah-Jeddah corridor ▪ % utilization Part of 5 … … …
Laith-Qunfudah (S, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
Jeddah-JEC- ▪ LOS A A A A
14
Qunfudah-Laith (N, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A B

PRELIMINARY
2016 2021 2026 2030

▪ Traffic volume 465 664 949 1,262
Qunfudah-Darb (SE, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A
▪ Traffic volume 634 900 1,278 1,692
Darb-Qunfudah (NW, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
Jeddah-JEC- ▪ LOS A A A B
14 Jazan
(cont’d) ▪ Traffic volume 367 682 1,269 2,084
Qunfudah-Al Bark (S, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A B
▪ Traffic volume 419 749 1,340 2,134
Al Bark-Qunfudah (N, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A B

PRELIMINARY
2016 2021 2026 2030

Domat AlJandal-Sakaka, ▪ Design Capacity 4,800 4,800 4,800 4,800
Dual carriageway ▪ % utilization 10% 11% 12% 13%
Tabuk-Sakaka- ▪ LOS A A A A
15
Arar ▪ Traffic volume 353 324 353 379
Sakaka-Arar, Dual ▪ Design Capacity 4,800 4,800 4,800 4,800
▪ LOS A A A A

Each future rail project has been assessed for financial and
socio-economic impact (1/2)
▪ SRO and SAR produced a ▪ The first model targets the volumetric ▪ Assuming accurate traffic forecasts by the Saudi
comprehensive 2030 railway assessment of the rail, where the Railway Masterplan study, incremental traffic
masterplan study for the Kingdom. The approach was to validate whether the due to rail transport demand would significantly
effort was concluded in November existing roads can accommodate the increase road traffic volumes; however, most of
2016, and yielded a need to build assumed 2030 traffic as forecasted by the existing roads will absorb it (except on the
several new rail assets the railway masterplan (i.e., moving all Jeddah-Jubail corridor (landbridge) and mostly
▪ Two models were developed to assess assumed rail traffic onto existing roads) due to Jeddah-Mekkah link).
each proposed new railway asset ▪ Rail projects usually broader benefits to ▪ All rail projects have a negative direct/financial
through a volumetric perspective (pure the economy, specifically savings on NPV; whereas all of them, except for Madinah-
traffic volume and network capacity) fuel consumption, freight Halat Ammar and Khafji-Batha projects, have
and a socio-economic perspective transportation cost, fatalities loss positive total economic/strategic NPV
(broad benefits provided to the KSA prevention, and emissions. The second ▪ The decision whether to build a rail asset
economy by the construction and model assesses the economic/strategic remains a strategic one that should take both
operation of the new asset) viability of the railway projects assessments into consideration
suggested by the railway masterplan,
by calculating the EPV1 value for each
project
1 Economic Present Value is equal to the sum of all benefit and cost associated to the project
Each future rail project has been assessed for financial and
socio-economic impact (2/2)
Assumptions
▪ Roads volumes, capacities, and LOS data is taken from roads traffic forecast model
▪ Rail input data is taken from SRMP 2030 produced in November 2016
▪ Traffic data was converted into pc (passenger cars) based on HCM definition
▪ Future rail projects that were taken into consideration are the ones under construction, approved/in planning, and the ones already investigated
▪ In ENPV calculation sheets, CapEx numbers (and quantities) are obtained from the 2030 railway masterplan; whereas the OpEx and Revenue numbers are taken from SAR's costing
and pricing strategy document
▪ Peak hour ratio remains the same when moving the assumed traffic for rail to roads
▪ For freight, each truck transports 10 tons of bulk and general cargo, or 1 TEU per trip
▪ The ratio of passengers to cars is 1.5
▪ When the volume of passengers and goods are moved onto rail, it is distributed evenly over the days of the year
▪ Volumes are assumed to be evenly distributed between the opposite directions of rail/road (all rail projects are two ways)
▪ Discount rate used for NPV/EPV calculation was 8%
▪ Inflation rate of 3% was used
▪ Trucks freight tariff is assumed at 0.45 SAR/tkm, based on a benchmarking exercise
▪ Initial diesel price is 1.46 SAR/L; subsidized price is 0.42 SAR/L for SAR and for trucks
▪ Initial gasoline price is 2.67 SAR/L; subsidized price is 0.825 SAR/L
▪ Passenger car fuel consumption is assumed at 10 KM/L, whereas trucks consumption is on average 2 KM/L. Train fuel consumption values were obtained from SRMP 2030
▪ Value of a statistical life in KSA is estimated at 4.05 SAR M (adjusted to today's SAR value, from 3.36 SAR M in 2003)1
▪ Road accident fatalities per 100K inhabitants for each region was deduced based on statistics by Ministry of Interior- General Directorate of Traffic, General Authority for Statistics,
and KSA Statistics Book 2015
▪ Road accident fatalities per billion v-km for each region was estimated based on the fatalities per 100K inhabitants and a correlation equation deduced from "Road Safety Annual
Report 2016 - © OECD 2016"
1 Based on "Estimation of Socio-Economic Cost of Road Accidents in Saudi Arabia: Willingness-To-Pay Approach (WTP)" research by Professor Hasan A. Mohamed
Most of the projected rail traffic can be accommodated on the existing
roads network with only few problematic links PRELIMINARY - TO BE O/D STRESS TESTED
Moving forecasted rail traffic

onto roads
Utilization1 Utilization1 2
Planned rail network in 2030 Corridor (2030) LOS 1 (2030) (2030) LOS 2 (2030)
6 35% A 44% B
1. Jeddah-Yanbu Key insights:
3  Moving the
34% B 37% B forecasted rail
2. Jeddah-Jazan traffic onto roads
5 will keep the
81% D 89% D average LOS of the
3. Jeddah-Jubail2 relevant corridors
below LOS C.
4. Al Jadid- 13% A 22% A
4 7  The new highway
1 Khamis-Abha4
between Mekkah
5. Yanbu- 9% A 16% A and Jeddah, along
Madinah with HHR will help
2 reducing the high
6. Madinah-Halat 31% A 36% B utilization of the
Ammar problematic
Jeddah-Mekkah
10% A 19% A link.
7. Khafji - Batha3
1 Calculated through average of links within each corridor; 2 High utilization is due to Mekkah-Jeddah link; 3 Inaccurate representation as Dammam-AlKhafji road has no traffic counters (high
utilization expected); 4 Average of two available options/routes
New projects seem to be strategic in nature; justifiable economically
but not from a financial point of view PRELIMINARY - TO BE O/D STRESS TESTED
Key insights:
Planned rail network in 2030 Link Description NPV1 EPV1
▪ Low fees cater to
6
▪ 1300 KM
the fact that all
1. Jeddah-Jubail ▪ 6.45 USD Bn
▪ Double track railway projects are
non-profitable (as
1 coveyed by
▪ 660 KM
2. Jeddah-Jazan ▪ 3.31 USD Bn negative NPV)
▪ Double track ▪ However, rail’s
4
socioeconomic
▪ 350 KM impact becomes
3. Jeddah-Yanbu ▪ 1.88 USD Bn positive when
▪ Double track
counting other
5 7 benefits (e.g.,
3 ▪ 150 KM
transport costs
4. Yanbu-Madinah ▪ 1.05 USD Bn
▪ Double track savings for end
users, fatalities
▪ 590 KM reduction)
2 5. Al Jadid-Khamis-
Abha
▪ 4.24 USD Bn ▪ Losses incurred by
▪ Double track the operator(s),
which lead to
Assumptions: ▪ 710 KM
▪ NPV constitutes of network and rolling stock CapEx, OpEx, and revenues 6. Madinah-Halat savings for the end
Ammar
▪ 5.09 USD Bn users, need to be
▪ EPV constitutes of NPV, fuel subsidies, fatalities, emissions, and freight transport ▪ Double track
cost saving by moving from road to rail. subsidized by the
▪ Volumes, rolling stock, and fuel consumption are based on existing rail government
▪ 635 KM
masterplan (validated then against volume forecasted with KSA transport model) 7. Khafji-Batha ▪ 5.71 USD Bn
▪ OpEx costs and services fees are taken from SAR rail pricing and costing ▪ Double track
information
1 Discount rate used is 8%

SOURCE: : Saudi railway masterplan 2030, team analysis, KSA transport model 155
Future rail projects by 2030 have a negative financial value, whereas most
of them have a positive economic value
Financial/economic benefits (SAR M)
Financial value (SAR M)1
Network Rolling stock Fuel subsidies Freight transport Fatalities economic Emissions
CapEx CapEx Total OpEx Revenues Total NPV savings cost saving loss prevention saving Total EPV
i. Jeddah-Jubail (24,188) (7,163) (148,562) 63,833 (116,079) 12,240 302,800 2,413 4,358 205,732
ii. Jeddah- (7,050) (1,328) (27,337) 15,792 (19,923) 7,638 84,292 873 3,025 75,906
Yanbu
iii. Jeddah- (12,413) (1,406) (54,798) (21,845) (46,771) 10,078 96,502 1,262 3,748 64,818
Jazan
iv. Yanbu-
(3,938) (289) (6,700) 6,107 (4,819) 2,991 31,585 383 1,137 31,278
Madinah
v. Al Jadid- (15,900) (173) (3,172) 1,742 (17,503) 744 9,299 104 - (7,428)
Khamis-Abha
vi. Madinah-
(19,088) (858) (27,783) 6,140 (41,589) 1,476 13,314 454 264 (26,080)
Halat Ammar
vii. Khafji-Batha (21,413) (1,919) (86,686) 14,795 (95,221) 2,809 8,955 759 124 (82,573)
1 discounted at present value (2030)

SOURCE : Saudi railway masterplan 2030, McKinsey team analysis 156
Forecasted volumes for each port in the Kingdom has been assessed
and analysed against the planned expansion plans
▪ Saudi Maritime trade is not yet realizing its full ▪ Supply/demand analysis was performed for ▪ 2030 forecasted volumes (36-41 m TEU eq.) can be
potential despite clear advantages of the both T/S and O/D traffic largely accommodated by existing capacity:
Kingdom’s geographical positioning ▪ For O/D forecasted volumes were correlated – Operational excellence to increase effective
▪ SEAPA is undergoing a major transformation with different sectors growth projections to capacity by ~4m TEUs (in JIP and Dammam)
targeting the entire ports ecosystem reach vision 2030, at each port’s level (~4%
– Physical expansion of ~2-7 mTEUs on the west
▪ Shipping is undergoing major consolidation with growth)
coast (mainly in KAP)
7 alliances in 2011 becoming 3 in 2016 ▪ For T/S, several scenarios were evaluated
– Repurposing of some of the existing expansion
▪ Each of the ports had developed an aggressive spanning from a very pessimistic scenario to
plans between dry and liquid bulk
expansion plan without significant coordination KSA having hegemony over the entire region’s
traffic (especially on the west coast) – Leveraging nearby redundant port’s capacity
between ports
▪ Assigning needed container capacity on the ▪ Ports will become more specialize per cargo type
▪ Ports have already heavily invested in
infrastructure and are now operating west coast was based on building economist ▪ Majority of capacity expansion plans will be put on
significantly below capacity (~60%) cost curves for JIP and KAP hold or postponed till required
Assumptions
▪ Liquid oil and gas was not included in the calculations
▪ KAP was assumed to be part of the overall ports ecosystem and to abide by national maritime masterplan
▪ Operational improvements were assumed to be fully implemented to ensure the effective capacity expansion of ~4m TEU from consolidation of container
terminals in JIP and Dammam, streamlining of operations with customs and other bodies leading to a reduction of dwell time to 3-5 days
▪ JIP and KAP were assumed to function as successfully coordinated satellite ports
▪ No additional feedering/cabotage services were assumed between Saudi ports
▪ Final T/S projection assumed to be either realistic (maintain 95% of Red Sea T/S traffic and 30-35% of East Africa’s) or aggressive (100% of Red Sea T/S Traffic, 80%
of East Africa’s and 10-15% of the Levant’s)
▪ East-West traffic forecast and T/S forecasts were based on the Drewry report.
The Kingdom has a sizeable port network with ~32 Mn TEU equivalent of
capacity, with plans to reach ~63 Mn TEU equivalent by 2030
Current and planned supply in 20301
Mn TEU equivalent Planned Current Key drivers
▪ More than 80% of

7 63 the growth is
6 1 driven by
0 6 containers,
10 6 especially on the
3 31 West coast
40 7
▪ Capacity in growth
27 in containers due
to:
32 – Operational
excellence of
13 current ports
– Planned
Containers Dry bulk Liquid bulk General cargo Total expansion
1 Excluding crude and fuel oil, refined products and liquefied gas
Source: SEAPA reports; Team analysis 158
Overcapacity is a common issue across cargo types, and will become
more pronounced once all planned expansion projects are completed
Projected growth Optimized supply Current supply Current demand Supply Demand
Mn tons Mn tons Mn tons Mn tons

421
306
West coast 120 ~250
230
supply- 198
demand gap, 20
planned1 69 172
46 37 20
Mn tons 34 84
88 22 1 5
19 14 21 171
51 7 36 29 12 88
24 3
12 11 9
102 223
46 57 ~85
East coast
supply- 55 54 10 139
demand gap, 13 49
8 39
planned1 35 18 1 61
29
Mn tons 1 20 156
43 46 15
31 4 38 78
20 28
16 9
6
Containers Dry bulk Liquid bulk General cargo Total
1 Excludes oil & gas demand/capacity from KFIP Yanbu and KFIP Jubail; current reflects 2016 or latest
Source: SEAPA reports; Team analysis 159
A closer look at KSA’s port network reveals that only a few ports require
interventions to meet projected 2030 demand
Over-capacity Slightly under-capacity Under-capacity
West coast East coast
Jeddah KAP Yanbu (KFIP) Yanbu (com.) Jizan Dhiba Dammam Jubail (KFIP) Jubail (com.) Ras Al-Khair Total1
1 2
Con-tainer
Mn TEU -3.0 -0.8 0.2 0.2 0.2 -1.1 0.0 -4.3
3 ▪ Failing to bridge
▪ Containers
Dry Bulk, constitute the largest the gap on the
Mn tons 2.7 0.6 in the
share 0.1 2.7 1.9 3.4 East-7.7
Coast, will -2.1 24.5 26.1
projections, with the have important yet
west coast being the limited effect on
best bet at reaching Saudi Shipping –
the state of a might lose a small
logistics hub share to other GCC
Liquid Bulk,
0.2 22.9 1.0 0.0 0.8 ports8.1 0.0 4.4 37.4
Mn tons
▪ Failing to bridge the
gap has a massive
effect on the future
of KSA ports as
shipping hubs
Cargo,
Mn tons 4.8 2.4 3.3 2.2 0.0 -1.9 14.4 ▪ Failing 0.8
to bridge the 8.5 34.6
gap on non-
container shipping,
being mainly O/D,
will reduce the ease
of export/import but
Total, will not 1.2
necessarily
-21.6 -6.1 29.1 5.1 2.8 1.9 7.4 6.8 28.9 55.5
Mn tons cause a large value
destruction
1 TEU to tons converted at 10.2

Source: SEAPA; KAP report; Drewry; Dynamor; IMF import/export projections 160
The port sector should focus on capacity expansions through operational
improvements and capital investments at KAP, JIP and Dammam
Future landscape of Saudi ports, mn TEU equivalent 2015 capacity 2030 capacity
Critical to reach TEU 15-20m in one port or

combination of ports to:
Cargo/Bulk
Dry Bulk
Bulk
▪ Achieve required scale for a regional hub
0.7
3.4 3.4 ▪ Achieve necessary bargaining power against
Dhiba2
0.7
Ras Al-Khair1 Jubail1 6.7 a consolidating shipping industry
Bulk 6.9
Yanbu1 5.5 Dammam 7.8 9-103

5.5
Economically optimal capacity allocation:
2.5 Mixed Port
▪ TEU 10mn at JIP via ops improvement
KAP
5-6 (integrating RSGT/NCT and maintaining SCT)
▪ TEU 5-6m at KAP through expansion of
Containers hub with bulk current basin
8.9 and cargo
10-11
JIP
Specialized Dammam port in containers, to reach

Bulk
0.6 6M TEU (Total 10.0 mn TEU equivalent, including
other cargo types)
0.6
Jizan2
1 Coordination is needed between SEAPA and the Royal Commission for Jubail and Yanbu on industrial ports masterplan; capacity includes both commercial and industrial ports but excludes oil and gas liquid bulk estimates
2 National-level growth strategies (e.g. Jizan Economic City) may affect future capacity and specialization
3 Increase specialization in DMM, to include capacity of 6M TEU for containers
Source: SEAPA masterplans; Team analysis 161
Existing passengers forecasts for each airport have been re-assessed
to optimize GACA future expansion plans
▪ GACA is planning significant expansions of ▪ The methodology used is based on KSA ▪ Passenger traffic in KSA is constantly growing and
the airports’ capacities to address the future non-oil GDP growth correlation with will continue to do so in the forecasted period at an
demand historical air traffic growth average rate of 5-6% YoY1
▪ Preliminary forecasts were performed to ▪ Historical air traffic data showed +90% ▪ Number of passengers by 2030 is expected grow
identify the needs and select the expansion correlation with GDP growth by 125%
plans ▪ For major cities, the city specific GDP was ▪ Removal of fuel subsidies may reduce the expected
▪ Those forecasts were reviewed according to used to stress-test the initial results growth. However passengers will still double by
current industry best practice and additional ▪ Specific scenarios were developed for the 2030
assumptions to identify potential for potential impact of fuel subsidy removal on ▪ Current expansion plans seems to be adequate to
improvements in the current expansion plans the aviation industry and associated address the future demand. However, expansion of
passenger traffic regional and domestic airports should be
investigated further to avoid risk of overcapacity
Assumptions
▪ KSA GDP forecasts were taken from HIS, WIS (World Industry Services), where non-oil GDP was used.
▪ For city GDP-based-analysis, city specific GDP data was taken from McKinsey cityscope internal tool.
▪ For fuel subsidy removal analysis, fuel Cost was considered 18.7% of the operational cost (source: 2017 IATA Report2). Moreover, Fuel prices are assumed to
quadruple by 20303. In addition, airline operating margin was assumed to be 6.6%, and fuel cost as 17.54% of revenues. Finally, ticket price elasticity was assumed
to be -0.5 (source: Airport traffic forecasting manual 2011, ICAO).
▪ Airport capacity classification is based on GACA's definitions
1 5% YoY with removal of fuel subsidies, and 6% for keeping them
2 Based on the price of 55$ for a barrel of crude oil
3 Based on future expected jet fuel prices, compared with today's subsidized prices
GDP is the key driver for changes in air traffic, where non-oil GDP
growth is used to forecast air traffic volume
Annual change in KSA GDP vs change in Passenger trips Relation between KSA GDP and air passengers at cities
400000 90 25,000,000
Passengers
20,000,000
350000 80
15,000,000
70 KKIA
300000
10,000,000
60
250000 5,000,000
50 0
200000 GDP 0 100,000 200,000 300,000 400,000
40 Pax 35,000,000
150000 30,000,000
30
25,000,000
100000 20,000,000
20 KAIA
15,000,000
50000 10 10,000,000
5,000,000
0 0 0
1970 1980 1990 2000 2010 2020 0 100,000 200,000 300,000 400,000
Non-oil GDP
(EUR 2016 Million)
SOURCE : GACA, SAMA database 2016, IHS 163

Current airports are short on covering the demand, where 36% of the
Kingdom’s airports are operating at +160% of their capacities
Over design Optimum Sub-optimum Under provided
4 6 6 9 Demand
Airports map by future utilization categoty1
Capacity
-76% 31.4
Jeddah (JED), Key insights:

7.5
International ▪ Current airports capacity is at 53
m pax/year
▪ Highest category of airports in
-7%
2016 is the ‘under provided’
9.7 9.0
Dammam
DMM Dammam (DMM), category (9 airports)
International
RUH
▪ Most of the 4 major international
MED airports are either under-
Medina Riyadh -23%
23.3 provided or sub-optimum
18.0
Jeddah Riyadh (RUH),
JED international
Mekah
+21% 8.0
Medinah (MED), 6.6
international
2016
1 Based on GACA, there are 4 utilization categories based on 2030 demand and capacity: overdesign, when utilization is <60%, optimum when it is <95%, sub-optimum when it is <160%, and
underprovided when it >160%
Planned airport expansions by 2030 is critical to support growth across main
passenger hubs, but will exceed demand in regional and domestic airports
Optimum Sub-optimum Over design
Airports map by future utilization categoty1 (forecasts with fuel subsidies removal) Demand
Capacity
11 +7%
75.0 80.0
Key insights:
Jeddah (JED),
TUI RAE
International
▪ Planned airport expansions are
expected to increase airports
capacity by 156 m pax/year
4
-13%
53.9
47.0
▪ Capacity expansions are
Dammam
expected to exceed demand
RUH needed, mainly in regional and
Riyadh (RUH), domestic airports.
Riyadh international
Medina
▪ Expansions of over-designed
Jeddah airports (mainly regional and
10
JED
Mekah
+100%
1.0 domestic) should be revised
0.5 based on forecasted demand.
Arar (RAE),
domestic
+285% 0,5
Turaif (TUI),
domestic 0,1
2030
1 Based on GACA, there are 4 utilization categories based on 2030 demand and capacity: overdesign, when utilization is <60%, optimum when it is <95%, sub-optimum when it is <160%, and
underprovided when it >160%
Current airports do not fully cover demand, with current design capacity of the
system covering only 62% of demand
Over design Optimum Sub-optimum Under provided Traffic (m Capacity (m Utilization
Airports map by future utilization categoty1 Airport (IATA code) pax, 2016) pax, 2016) (%, 2016)
▪ KAIA (JED) ▪ 31.4 ▪ 7.5 ▪ 419%
Under ▪ Jouf (AJF) ▪ 0.58 ▪ 0.175 ▪ 330%
provided ▪ Abha (AHB) ▪ 3.5 ▪ 1.1 ▪ 321%
▪ Qassim (ELQ) ▪ 1.7 ▪ 0.55 ▪ 316%
▪ Arar (RAE) ▪ 0.25 ▪ 0.1 ▪ 250%
▪ Taif (TIF) ▪ 1.3 ▪ 0.55 ▪ 243%
▪ Jazan (GIZ) ▪ 1.9 ▪ 0.9 ▪ 207%
▪ Hail (HAS) ▪ 0.85 ▪ 0.5 ▪ 169%
9
▪ Baha (ABT) ▪ 0.41 ▪ 0.25 ▪ 164%
Dammam ▪ Yanbu (YNB) ▪ 1.2 ▪ 0.9 ▪ 131%
Sub- ▪ KKIA (RUH) ▪ 23.3 ▪ 18 ▪ 130%
optimum ▪ Qurayat (URY) ▪ 0.19 ▪ 0.15 ▪ 130%
Riyadh
▪ Sharorah (SHW) ▪ 0.23 ▪ 0.2 ▪ 115%
Medina
▪ KFIA (DMM) ▪ 9.7 ▪ 9 ▪ 108%
Jeddah
6
▪ Qaisumah (AQI) ▪ 0.16 ▪ 0.15 ▪ 106%
▪ Ahsaa (HOF) ▪ 0.38 ▪ 0.4 ▪ 95%
Optimum
Mekah
▪ Tabuk (TUU) ▪ 1.4 ▪ 1.5 ▪ 92%
▪ PMIA (MED) ▪ 6.6 ▪ 8 ▪ 82%
▪ Bisha (BHH) ▪ 0.37 ▪ 0.6 ▪ 62%
6 ▪ Rafha (RAH) ▪ 0.08 ▪ 0.125 ▪ 62%

▪ Turaif (TUI) ▪ 0.08 ▪ 0.125 ▪ 62%
▪ Wajeh (EJH) ▪ 0.05 ▪ 0.1 ▪ 54%
Over design ▪ Wadi Dawasser (WAE) ▪ 0.11 ▪ 0.3 ▪ 38%
▪ Ola (ULH) ▪ 0.02 ▪ 0.1 ▪ 23%
4 ▪ Dawadmi (DWD) ▪ 0.02 ▪ 0.2 ▪ 11%
1 Based on GACA, there are 4 utilization categories based on 2030 demand and capacity: overdesign, when utilization is <60%, optimum when it is <95%, sub-optimum when it is <160%, and under
provided when it >160%
Planned expansions by 2030 are critical to support growth across main
passenger hubs, but should be reviewed across other existing and new ones
Traffic
Over design Optimum Sub-optimum New airport
(m pax, Planned capacity Utilization
Planned airport network (2030) vs. future utilization (2030)1 Airport (IATA code) 2030)3 (m pax, 2030) (%, 2030) Key insights
▪ Wajeh (EJH) TBD2 1.0 TBD2
Over ▪ Qurayat (URY) 0.11 0.5 22%
design ▪ Turaif (TUI) 0.13 0.5 27%
▪ Expansion plans for nine
regional and domestics airports,
▪ Dawadmi (DWD) 0.06 0.2 28%
seem to be well above their
▪ Ahsaa (HOF) 0.65 2.0 33%
projected demand requirements
▪ Rafha (RAH) 0.19 0.5 39%
▪ Arar ((RAE) 0.5 1.0 49% ▪ Majority of new airports should
▪ Wadi Dawasser (WAE) 0.25 0.5 51% be reviewed as demand doesn’t
9
▪ Abha (AHB) 6.5 12 54% seem to justify their existence:
▪KAIA (JED) 75.0 80 94% – Farasan island airport
Optimum ▪Jazan (GIZ) 5.8 6.0 97% (despite lack of detailed
▪Hail (HAS) 2.8 3.0 94% information) seems in line
Dammam ▪Bisha (BHH) 0.57 0.6 95% with touristic development
6 ▪Qaisumah (AQI) 0.4 0.5 79% plans for the island
▪Taif (TIF) 4.7 5.5 86%
▪KKIA (RUH) 53.9 47 115% – Najran airport will be 25%
Sub- ▪KFIA (DMM) 21.7 21 103% utilized
Riyadh
Medina Optimum ▪PMIA (MED) 12.7 12 106% – The conversion of Jubail
Jeddah ▪Tabuk (TUU) 3.1 3.0 102% and Ras Mishab should be
▪Yanbu (YNB) 3.6 3.0 120% re-assessed in
Mekah
▪Jouf (AJF) 1.0 1.0 104% consideration of very low
▪Baha (ABT) 1.26 1.0 126% demand
▪Sharorah (SHW) 0.54 0.5 109%
– Proposed airports of
10 ▪Ola (ULH) TBD2 TBD2 TBD2
Riyadh South and North
▪Qassim (ELQ) 5.1 3.0 160%
▪Jubail <0.2 N/A N/A
shows very limited
New ▪Qunfotha <0.2 1.0 0%
demand (<300K
Airports ▪Farasan N/A 0.5 N/A
passengers) and possible
▪Ras Mishab <0.2 N/A N/A
cannibalization of KKIA
▪Najran 0.25 1.0 25%
7 ▪Riyadh North 0.3 N/A N/A
▪Riyadh South <0.2 N/A N/A
1 Based on GACA, there are 4 utilization categories based on 2030 demand and capacity: overdesign, when utilization is <60%, optimum when it is <95%, sub-optimum when it is <160%, and under provided when it >160%
2 Currently model shows limited demand (100,000 pax). However, further investigation should be done in consideration of expansion of the urban/industrial area serving the airports (information not available at the time of
the project) | 3 Passengers forecasts have been stress-tested and refined/updated through KSA transport model
SOURCE: Ministry of Transport - General Authority of Civil Aviation, KSA transport model, Team analysis 167
Review of passenger projections indicates potential optimization of
GACA’s airports expansion plans (1/7)1 PRELIMINARY
2017 2022 2026 2030

GACA forecast 32,988,914 42,103,142 51,176,633 62,205,517
McK forecast 35,856,195 46,754,729 57,057,492 67,224,399
KAIA McK forecast (removing fuel subsidies) 35,856,195 44,421,565 52,027,941 58,809,614
% difference 9% 11% 11% 8%
% difference (removing fuel subsidies) 9% 6% 2% -5%
GACA forecast 24,979,492 35,035,030 45,923,778 60,196,705
McK forecast 27,945,135 36,963,466 45,488,808 53,901,731
KKIA McK forecast (removing fuel subsidies) 27,945,135 35,124,064 41,488,701 47,168,415
% difference 12% 6% -1% -10%
% difference (removing fuel subsidies) 12% 0% -10% -22%
GACA forecast 10,068,896 12,250,352 14,331,179 16,765,452
McK forecast 9,555,010 13,964,936 18,133,792 22,247,676
KFIA McK forecast (removing fuel subsidies) 9,555,010 13,283,462 16,565,043 19,505,999
% difference -5% 14% 27% 33%
% difference (removing fuel subsidies) -5% 8% 16% 16%
GACA forecast 3,703,679 5,290,755 7,198,014 9,792,818
McK forecast 3,591,972 5,158,671 6,639,726 8,101,251
Abha McK forecast (removing fuel subsidies) 3,591,972 4,906,068 6,063,711 7,100,604
% difference -3% -2% -8% -17%
% difference (removing fuel subsidies) -3% -7% -16% -27%
1 Data are preliminary, final data showed in overall summary are the refined/updated ones resulting from KSA transport model
SOURCE : GACA, McKinsey team analysis 168
2017 2022 2026 2030

GACA forecast 1,998,035 2,802,348 3,673,306 4,814,955
McK forecast 1,579,902 2,430,729 3,235,045 4,028,755
Jazan McK forecast (removing fuel subsidies) 1,579,902 2,313,300 2,957,437 3,535,514
% difference -21% -13% -12% -16%
GACA forecast 82,062 109,818 138,643 175,033
McK forecast 69,191 91,363 112,323 133,007
Touraif McK forecast (removing fuel subsidies) 69,191 86,815 102,443 116,388
% difference -16% -17% -19% -24%
GACA forecast 262,051 402,852 542,862 711,581
McK forecast 249,912 334,676 414,806 493,879
Arrar McK forecast (removing fuel subsidies) 249,912 318,062 378,405 432,292
% difference -5% -17% -24% -31%
2017 2022 2026 2030

GACA forecast 1,442,888 1,841,531 2,238,392 2,720,780
McK forecast 1,415,863 1,990,035 2,532,821 3,068,448
Tabouk McK forecast (removing fuel subsidies) 1,415,863 1,892,177 2,312,323 2,688,350
% difference -2% 8% 13% 13%
% difference (removing fuel subsidies) -2% 3% 3% -1%
GACA forecast 1,467,808 2,255,571 3,549,185 5,584,711
McK forecast 1,348,811 2,144,715 2,897,111 3,639,586
Taif McK forecast (removing fuel subsidies) 1,348,811 2,041,771 2,649,765 3,195,799
% difference -8% -5% -18% -35%
GACA forecast 1,876,857 2,757,719 3,751,846 5,104,345
McK forecast 1,363,846 2,400,992 3,381,441 4,348,962
Qassim McK forecast (removing fuel subsidies) 1,363,846 2,288,024 3,097,115 3,824,994
% difference -27% -13% -10% -15%
GACA forecast 914,436 1,343,606 1,827,962 2,486,922
McK forecast 938,473 1,399,186 1,834,713 2,264,498
Hail McK forecast (removing fuel subsidies) 938,473 1,331,173 1,676,494 1,986,150
% difference 3% 4% 0% -9%
% difference (removing fuel subsidies) 3% -1% -8% -20%
2017 2022 2026 2030

GACA forecast 429,694 686,445 1,023,298 1,498,210
McK forecast 406,387 546,100 678,176 808,511
Baha McK forecast (removing fuel subsidies) 406,387 519,009 618,698 707,738
% difference -5% -20% -34% -46%
GACA forecast 119,459 145,340 170,027 198,907
McK forecast 121,516 167,654 211,270 254,311
Wadi Dawasser McK forecast (removing fuel subsidies) 121,516 159,380 192,822 222,729
% difference 2% 15% 24% 28%
% difference (removing fuel subsidies) 2% 10% 13% 12%
GACA forecast 242,411 309,385 376,060 457,103
McK forecast 200,240 299,443 393,223 485,767
Sharorah McK forecast (removing fuel subsidies) 200,240 284,896 359,329 426,081
% difference -17% -3% 5% 6%
GACA forecast 382,177 443,048 498,654 561,239
McK forecast 407,563 543,707 672,410 799,415
Bisha McK forecast (removing fuel subsidies) 407,563 516,696 613,365 699,674
% difference 7% 23% 35% 42%
2017 2022 2026 2030

GACA forecast 57,028 72,783 88,469 107,534
McK forecast 59,738 71,917 83,431 94,793
Wajeh McK forecast (removing fuel subsidies) 59,738 68,272 75,974 82,784
% difference 5% -1% -6% -12%
% difference (removing fuel subsidies) 5% -6% -14% -23%
GACA forecast 82,854 116,207 152,323 199,664
McK forecast 74,922 116,302 155,420 194,021
Rafha McK forecast (removing fuel subsidies) 74,922 110,693 142,101 170,294
% difference -10% 0% 2% -3%
GACA forecast 170,537 239,186 313,525 410,967
McK forecast 159,913 241,693 319,003 395,293
Qaisumah McK forecast (removing fuel subsidies) 159,913 229,976 291,552 346,789
% difference -6% 1% 2% -4%
GACA forecast 618,158 866,998 1,136,457 1,489,664
McK forecast 481,009 673,687 855,832 1,035,575
Jouf McK forecast (removing fuel subsidies) 481,009 640,536 781,283 907,234
% difference -22% -22% -25% -30%
2017 2022 2026 2030

GACA forecast 416,126 670,174 981,202 1,436,578
McK forecast 414,787 706,494 982,256 1,254,380
Ahsaa McK forecast (removing fuel subsidies) 414,787 673,038 899,260 1,102,676
% difference 0% 5% 0% -13%
GACA forecast 202,119 245,909 287,679 336,543
McK forecast 202,852 259,770 313,576 366,673
Quraiyat McK forecast (removing fuel subsidies) 202,852 246,761 285,849 320,653
% difference 0% 6% 9% 9%
GACA forecast 1,298,892 2,091,878 3,062,719 4,484,127
McK forecast 1,087,573 1,821,390 2,515,092 3,199,647
Yanbu McK forecast (removing fuel subsidies) 1,087,573 1,734,849 2,302,042 2,811,918
% difference -16% -13% -18% -29%
GACA forecast 22,316 26,504 30,414 34,901
McK forecast 24,947 36,074 46,593 56,973
Dawadmi McK forecast (removing fuel subsidies) 24,947 34,310 42,555 49,943
% difference 12% 36% 53% 63%
2017 2022 2026 2030

GACA forecast 25,068 35,159 46,086 60,410
McK forecast 25,262 52,888 79,004 104,776
Olaa McK forecast (removing fuel subsidies) 25,262 50,483 72,523 92,387
% difference 1% 50% 71% 73%
GACA forecast 6,895,233 8,800,259 10,696,770 13,001,991
McK forecast 6,944,172 9,782,915 12,466,478 15,114,654
PMIA McK forecast (removing fuel subsidies) 6,944,172 9,302,068 11,381,603 13,242,940
% difference 1% 11% 17% 16%
Contents
▪ NTS 2030
▫ Challenges
▫ Initiatives
175
Across each of the performance objectives we developed a comprehensive set
of strategies, initiatives and KPIs for MoT and its affiliates
1. Ensure efficient and effective internal and 2. Minimize the rate of transportation 3. Improve urban mobility, including reduce
external links to priority population and accidents and fatality and create the basis congestion
value chain centres for a safety-oriented culture
3 50 25 1 25 13 3 18 5
4. Minimize the sectors negative impact on 5. Optimize transport assets’ TCO through 6. Increase private sector participation in
the environment; effective delivery of new assets and delivering and operating transport assets
in particular reduce energy consumption efficient use and maintenance of existing
ones
3 18 12 2 18 13 1 15 7
13 Strategies 144 Initiatives 75 KPIs
176
176
Thirteen strategies set the guidelines for and support the development of sector-wide
and mode-specific initiatives
1. Ensure efficient and effective internal and 2. Minimize the rate of transportation 3. Improve urban mobility, including reduce
external links to priority population and accidents and fatality and create the basis congestion
value chain centres for a safety-oriented culture
▪ Improve transport modes levels of ▪ Launch a targeted safety program for ▪ Create new public transport systems
service each transportation mode across urban areas
▪ Improve inter-modal connectivity ▪ Expand capacity of existing urban
▪ Accelerate implementation of the infrastructure
logistics hub roadmap initiatives ▪ Stimulate public transport demand
4. Minimize the sectors negative impact on 5. Optimize transport assets’ TCO through 6. Increase private sector participation in
the environment; effective delivery of new assets and delivering and operating transport assets
in particular reduce energy consumption efficient use and maintenance of existing
ones
▪ Develop the mechanism to effectively ▪ Develop and deploy asset lifecycle ▪ Develop a flexible national PPP
deploy energy programs optimization and contracting regulatory framework that facilitates
▪ Develop and deploy energy efficiency strategies attraction of private investors and
programs ▪ Develop and deploy projects and creates transparency
▪ Deploy infrastructure to support contractors oversight mechanism
energy efficiency programs
177
177
NTS 2030 – proposed sector-wide strategic initiatives (1/6)
NTS 2030 Objectives Sector-wide strategies and proposed initiatives

1 Ensure efficient and effective Improve transport modes levels of service
internal (within KSA) and external
(internationally) links to priority
▪ MoT Roads to improve and maintain level of service for main arteries1 along major corridors at
C (minimum), while prioritizing the road between Mekkah and Jeddah
population and value chain centres
▪ SAR/SRO to finalize ongoing rail investments (SRO Hofuf Diversion, Doubling of freight line 2,
and all SAR ongoing projects), and develop key rail links Jeddah-Jubail, Yanbu-Jeddah, Jeddah-
Jizan, Medinah-Yanbu junction (connection to West coast line)
▪ SEAPA to expand capacity of West and East coast ports respectively to TEU equivalent 22m
and TEU equivalent 17m by 2030
▪ GACA to expand capacities of top 4 international airports to 163m pax p.a. by 2030, and
expand cargo capcity to 5.5Mn to p.a.
Improve inter-modal connectivity
▪ MoT to coordinate development of 12 logistics platforms (including dryports where needed)
across 8 key locations (Jizan, Jeddah, KAEC, Yanbu, Hail, Jubail, Dammam, Riyadh and Sudair)
▪ MoT to upgrade the 6 border crossings (UAE, Qatar, Bahrein, Kuwait, Jordan, and Iraq) to serve
as smaller platforms
Accelerate implementation of the logistics hub roadmap initiatives
1 Primary and secondary roads
SOURCE: Team Analysis, Client Interview, Expert Interviews, SEAPA Masterplan initiative 178

2 Minimize the rate of transportation Launch a targeted safety program for each transportation mode
accidents and fatality and create the ▪ MoT roads to launch the traffic safety program with focus on data collection, infrastructure
basis for a safety-oriented culture improvements, standards upgrades and activating a national coordination body/mechanism
▪ PTA to review and upgrade public transportation1 and trucks safety standards, and effectively
monitor/enforce their compliance
▪ SAR/SRO to design and launch rail safety program with focus on asset
maintenance/protection, building an accident prevention culture, and collaborating with MoI
to minimize public safety violations
▪ SEAPA to design and launch ports safety program with focus on upgrading safety standards,
and effectively monitoring/enforcing their compliance
▪ GACA to design and launch air safety program with focus on building a compliance culture
and airport specific safety and operation manuals to obtain certification
1 Including metros, buses and taxis

SOURCE: Team Analysis, Client Interview, Expert Interviews, MoT Road Safety Initiative 179

3 Improve urban mobility, including Create new public transport systems across urban areas
reduce congestion
▪ PTA to support deployment of public transport systems, prioritizing capital light interventions for the largest
cities (excluding Riyadh) to meet ridership and mobility requirements
▪ MoT Roads to deploy ring roads around specific cities to decongest urban centers and improve urban
mobility
Expand capacity existing urban infrastructure
▪ PTA to deploy intelligent traffic systems across the largest cities and coordinate with MoMRA/MoI to ensure
effective implementation
Stimulate public transport demand
▪ PTA to introduce mobility related fees (e.g. congestion fees, urban tolls, fuel surcharge) to reduce demand
for private vehicles, reroute traffic from congested areas and stimulate use of public transport
▪ PTA to set appropriate tariff schemes for different public transport systems (including taxis, buses, metros)
and monitor their enforcement to ensure affordability and
improve adoption
SOURCE: Team Analysis, Client Interview, Expert Interviews, Available traffic data 180

4 Minimize the sectors negative impact on Develop the mechanism to effectively deploy energy programs
the environment; in particular reduce ▪ MoT to coordinate creation and deployment of environmental protection and energy efficiency policies
energy consumption across the sector throug a dedicated central unit
Develop and deploy energy efficiency programs
▪ MoT Roads to develop the roads energy efficiency program to reduce roads direct and indirect (vehicle
operations) effects on energy consumption throughout their lifecycle (from design to maintenance)
▪ PTA to design and deploy the public (e.g. taxis, buses, trucks, metros) and personal (e.g. cars) transport
energy efficiency program to ensure compliance with latest global standards (e.g.
EURO 7)
▪ PTA to design and deploy the energy efficiency program for rolling stock and train systems to ensure
compliance with the latest relevant energy efficiency and environmental protection standards
▪ SEAPA to design and deploy the maritime energy efficiency program to reduce energy consumption and
emissions across ports lifecycle (from design to operations) and that of docking ships, including adoption of
the latest IMO standards
▪ GACA to design and deploy the aviation energy efficiency program to reduce airports and ancillaries energy
consumption across their lifecycle (from design to operations), including adoption of airport carbon
accreditation program
Deploy infrastructure to support energy efficiency programs
▪ MoT to deploy charging stations across the inter and intra city road network
SOURCE: Team Analysis, Client Interview, Expert Interviews 181


5 Optimize transport assets’ TCO1 Develop and deploy asset lifecycle optimization and contracting strategies
through effective delivery of new assets ▪ MoT roads to develop and deploy a lifecycle optimization approach for new and existing road projects,
and efficient use and maintenance of including an optimized contracting strategy to ensure fact based investment decisions
existing ones ▪ SAR to develop and deploy a lifecycle optimization approach for new and existing rail projects, including an
optimized contracting strategy to ensure fact based investment decisions
▪ PTA to develop and deploy in collaboration with MoMRA a best-in-class procurement and contracting
strategy to optimize end to end project delivery (e.g. increased use of DBM contracting)
Develop and deploy projects and contractors oversight mechanism
▪ MoT to setup a dedicated contractor performance classification and monitoring system, with a particular
attention to road contractors
▪ MoT Roads to establish a PMO supported by experienced professionals to ensure effective project oversight
▪ SAR to establish a PMO supported by experienced professionals to ensure effective project oversight
1 Total Cost of Ownership


6 Increase private sector participation in Develop a flexible national PPP regulatory framework that facilitates attraction of private investors and creates
delivering and operating transport assets transparency
▪ MoT to work with MEP/MoF on developing of a flexible national PPP regulatory framework
▪ MoT roads to setup an SPV to manage and support privatization of highways
▪ Each regulator to support deal making across their respective modes through creating transparency and
facilitating the attraction of private investors

We have developed a comprehensive set of initiatives for each entity to overcome the
challenges and support achieving the objective – MoT (1/6)
MoT Roads Objectives Proposed Initiatives
Rd1 Ensure efficient and effective internal ▪ Expand capacity of Makkah - Jeddah link, along the Riyadh-Jeddah Corridor, to maintain level of service C
(within KSA) and external (internationally) by 2030
links to priority population and value
chain centers
▪ Develop the new North and South access roads to Abha:
– North entrance road to Abha dual carriageway
– South entrance road to Abha expressway (3 lanes per direction)
▪ Continuously review and maintain minimum level of service C along major transport corridors1 through
adoption of appropriate capacity upgrades (eg. adding lane, adopting a 2+1 lanes option, etc.)
▪ Develop and populate the comprehensive traffic database to facilitate forecasting, future master planning
and capacity upgrades to the road network
▪ Build truck-yards/truck parking at the entrance of Riyadh, Jeddah, Madinah and Dammam (on behalf of
MoT)
▪ Upgrade the capacity of the top-5 border crossings with the UAE, Qatar, Bahrain, Kuwait and Jordan (on
behalf of MoT)
▪ Work with all relevant entities, such as MoMRA, Ministry of Housing, Modon, RCJY, to identify and assess
the impact of future traffic generators, and update the transport masterplan accordingly
1 To be updated with specific links once model is completed

SOURCE: Team analysis, Client Interviews 184
Rd2 Minimize the rate of transportation ▪ Launch a national road safety centre to coordinate the different road safety units across different ministries
accidents and fatality and create the (i.e. MoH, MoI, MoMRA, SRCA) and drive a coordinated national road safety strategy
basis for a safety-oriented culture
▪ Identify and deploy necessary infrastructure interventions required to maintain all major roads in the
Kingdom at a IRAP rating of 3 stars or above (according to latest safety standards) to reduce accidents
and fatalities
▪ Create repository of road safety data, in coordination with other stakeholders such as MoI, MoH, MoMRA
and SRCA, to analyze critical information with regards to traffic safety and plan potential interventions
▪ Review and update existing road design safety standards in accordance to latest international best
practices
▪ Build and continuously improve the capabilities of the road safety unit through classroom/on the job
training
▪ Launch a communication, awareness and public engagement campaign for road safety across the
Kingdom
▪ Reinforce the monitoring and enforcement procedures for road projects (new and under maintenance)
across the Kingdom to ensure adherence to latest safety standards
▪ Develop and deploy a highway traffic control management system along major corridors in the kingdom,
including development of data control centres, to monitor traffic conditions and plan necessary
interventions
1 To be updated with specific links once model is completed

SOURCE: Team Analysis, Client Interview, MoT Road Safety Initiative 185
Rd3 Improve urban mobility, including reduce  Complete ring-roads around major cities to decongest urban areas
congestion − Complete the Riyadh ring road to decongest the urban area within Riyadh
− Complete the Jeddah ring road to decongest the urban area within Jeddah
− Complete the Taif ring road to decongest the urban area within Taif
 Evaluate the feasibility and launch the construction of an additional ring road for Makkah to decongest
the urban area within Makkah
 Evaluate the feasibility and launch (if required) the construction of the Tabuk ring road to decongest the
urban area within Tabuk
 Evaluate the feasibility and launch (if required) the construction of the Khamis Mushait/Abha ring road to
decongest the urban area within Khamis Mushait/Abha
 Evaluate the feasibility and launch (if required) the construction of the Al Hofuf ring road to decongest the
urban area within Al Hofuf
 Work in coordination with MoMRA, municipalities and PTA to evaluate the feasibility of implementing
alternative initiatives to ring road construction to decongest urban areas such as congestion charges,
active traffic management systems and carpool lanes
 Work with MoMRA to review and clarify authority split on existing roads between the two entities (e.g
portions of King Fahd Road are under MoT and others under MoMRA), and develop a consistent system
for the future classification
SOURCE: Client Interviews, MoT Planning Department, Team analysis 186

Rd4 Minimize the sectors negative impact on ▪ Review and upgrade road design and material standards, to meet global best-practice for environmental
the environment; in particular reduce protection/energy efficiency to reduce the roads' carbon footprint during construction, operation and
energy consumption maintenance (eg. Specifying minimum amount of recycled materials in construction, using warm-mix
asphalt for paving, etc.)
▪ Work with MoMRA to deploy charging points across all inter-city petrol stations (on behalf of MoT)
▪ Work with MoMRA to identify locations for charging points across the top-20 cities and deploy them (on
behalf of MoT)
Rd5 Optimize transport assets’ total cost of ▪ Develop stage gate process to optimize investment decisions on future projects and create an asset
ownership through effective deli-very of management mind-set within the department
new assets and efficient use and ▪ Design and implement an optimized contracting and procurement strategy, including best in class RfQ
maintenance of existing ones and RfP procedures, that minimizes TCO, through adoption of innovative methods such as output based
standards, performance based contracts, DBM, etc.
▪ Design, build and deploy an MoT Roads PMO supported by experienced professionals to ensure effective
oversight over projects budgets and timelines
▪ Develop project-team framework for major projects, including suitable resource allocation based on
project value, and seamless integration between design, procurement and execution phases
SOURCE: Client Interviews, Team analysis, expert interviews 187

Rd6 Introduce private sector participation in ▪ Create an asset management unit responsible for developing and implementing private sector
delivering and operating transport assets agreements, including creation of a PPP framework and managing revenues from road assets
▪ Launch the first greenfield toll road (Mekkah - Jeddah, 3rd highway) under a PPP arrangement by 2019
▪ Launch the first set of brownfield toll roads under a concession arrangement by 2020
▪ Launch the second set of brownfield toll roads (remaining highways) under a concession arrangement
2025
▪ Identify and launch other private sector opportunities to monetize roads through land asset management,
rest area development and roadside billboards
Rd8 Build a collaborative, high-performing, ▪ Design and deploy customer service department that measures customer satisfaction rating (e.g. % of
and service-oriented organization complaints resolved on time, quality of resolution, etc.) and links it to clear business outcomes
▪ Redesign the organization structure (including processes, systems, etc…) to be customer centric and
improve customer journey
▪ Design and deploy employee performance management system and career progression framework, to
promote ownership and accountability, and recognize high-performing individuals
SOURCE: Client Interviews, team analysis, MoT road privatization initiative 188
Rd9 Create an external oriented organization ▪ Create centre of excellence to research new trends and partner with local universities and private sector
capable of monitoring and selectively companies, to recommend adoption of latest technologies in the transport infrastructure sector
adopting technological changes for the ▪ Develop the right incubating environment and necessary changes in regulations to promote advanced
benefit of the sector materials for construction of roads
▪ Develop the right incubating environment and necessary changes in regulations to promote photovoltaic
roads
SOURCE: Client Interviews, Expert interviews 189

challenges and support achieving the objective – PTA (1/5)
PTA Objectives Proposed Initiatives
Pt1 Provide an effective and efficient public ▪ Refine or confirm, in coordination with MoMRA/Municipalities, existing public transport masterplans for
transport system that is integrated with major cities in KSA1, including identifying financing options
other modes and stakeholders ▪ Develop or refine, in coordination with MoMRA/Municipalities, public transport masterplans for selected
cities1 that qualify under PTA requirements and criteria, including financing options
▪ Work with MoMRA/Municipalities and other governmental entities (e.g., MoT, MoI, MoF, etc.) to ensure
implementation of public transport masterplans
▪ Setup and activate traffic database and IT platform for intra-city traffic to serve as a decision support tool
for future urban public transport masterplans (starting with the largest cities2 and working with
municipalities to promote and support the system for smaller qualified cities2)
▪ Work with the municipalities of the largest 5 cities in the Kingdom to identify and deploy the most
appropriate ITS (intelligent transportation system) and TMS (traffic management system) to suit the
individual cities needs
1 PTA is in process to define, in collaboration with MoMRA, comprehensive list of cities in the Kingdom for which public transport masterplan will be created or revised. The list will be ready by
July 2017 and will be used to define the urban areas focus of the described initiatives
2 Largest cities will be defined based on a population above 250,000 people and/or other specific PTA criteria that may indicate requirement of IT platform and collection of traffic data (e.g.,
congestion, accident rate, etc.)
SOURCE: Client Interviews, team analysis 190
Pt2 Ensure adoption and compliance with ▪ Review and upgrade safety and security standards for public transportation vehicles (rolling stock, buses,
the highest level of safety, security, and taxis), commercial trucks, and maritime transport (boat, ferries, etc.)
quality standards for the public transport ▪ Review and upgrade safety and security standards for public transportation infrastructure (e.g. metro
sector system, LRTs, BRTs)
▪ Review and upgrade operating standards for the operation of public transport systems (metro, buses,
taxis) and commercial trucks
▪ Expand the current monitoring, inspection and enforcement system from taxis to all other public transport
vehicles including metros, buses and trucks across the Kingdom
▪ Develop and deploy mandatory safety training program for public transport operators, to enhance safety
culture and ensure compliance with safety regulations
Pt3 Stimulate the use of public transport ▪ Develop and deploy, in conjunction with the Municipalities and MoMRA, urban tolls, parking fees, no-car
zones and other specific urban policies to stimulate demand for public transport with specific focus for the
city of Riyadh, Jeddah, Dammam, Mekkah, Madinah
▪ Work with MEIMR to define the national framework for fuel surcharge
▪ Work with MoI to define the national framework for private vehicle licensing cost
▪ Develop a city specific tariff scheme for the use of public transportation systems, to ensure afford-ability,
and balance between social benefits for the public and financial profits of the operators
▪ Design and launch awareness and promotion campaign for utilization of public transport services

Pt4 Limit environmental pollution, including ▪ Develop and deploy, in coordination with other relevant stakeholders, environmental protection and
reducing energy consumption, through energy efficiency regulations for buses, trucks, and taxis in accordance with the latest global standards
development of the required ▪ Develop and deploy, in coordination with other relevant stakeholders, environmental protection and
specifications in cooperation with energy efficiency regulations for rolling stock and rail systems
relevant authorities ▪ Develop and deploy environmental protection and energy efficiency regulations for maritime transport, in
line with IMO1 regulations and global best practices
▪ Perform city-specific feasibility studies to recommend the adoption of low/zero emission vehicles for
public transport systems
▪ Enhance the licensing regulations and procedures to include mandatory testing and monitoring of
emission and environmental standards
Pt5 Expand private sector participation ▪ Develop regulatory framework and general guidelines for private sector participation in public transport
within the public transport sector projects
attracting best-in-class industry players ▪ Create dedicated investment unit with necessary capabilities to facilitate private investment attraction and
and investors support other relevant entities (eg. Municipalities) in the preparation and execution of successful public
transport PPP projects
▪ Create a list of future projects suitable for private sector participation, based on the outcome of the public
transport masterplans
1 International Maritime Organization

Pt6 Develop regulatory framework for the ▪ Design and propose regulatory framework and standards for the public transport sector (transportation
public transport sector law), including bylaws, and specific standards and regulations for different systems, in accordance to and
within the boundaries of the established mandate of the organization
▪ Develop a common set of technical standards for public transport systems (e.g., metro and rail rolling
stock, buses, etc…) across the different cities, taking into consideration the specific operating requirements
▪ Develop a common set of technical standards for the freight transport (e.g., commercial trucks, freight
trains, etc.) across the Kingdom, taking into consideration the specific operating requirements

Pt7 Build an high performing organization ▪ Establish a PTA centre of excellence by empowering the current studies department, to monitor, adopt
able to manage and properly regulate and regulate new technologies for the benefit of public transport sector
the adoption of innovative technologies ▪ Develop a standardized set of guidelines to ensure consistent application of latest technologies by public
in the public transport sector transport operators
▪ Develop the right regulatory environment to promote use of big data to analyse passenger flows, road
parameters and socio economic factors to optimize and design future integrated networks (across all PT
means) where customized customer experience will be key differentiator
▪ Develop and launch PTA web portal (transport gate) to provide critical services (e.g., licensing) and
facilitate customer interaction with the organization
▪ Develop and launch PTA digital platform (Wasel) to collect, monitor, and analyse relevant data (e.g. real-
time location, driver information, etc…) on all public transport systems in the Kingdom
▪ Perform comprehensive study on possible revenue generation sources for PTA to minimize the
governmental financial support to the organization
▪ Develop and deploy comprehensive training program for all employees to accelerate on-boarding of new
hires and enhance existing in-house capabilities
▪ Design and deploy comprehensive PTA employee performance management system, including clear KPIs
and career progression framework, to increase accountability and reward high performing employees

We have developed a comprehensive set of initiatives for each entity to overcome the challenges
and support achieving the objective – Rail Sector (SAR/SRO) (1/4)
Rail Sector Objectives Proposed Initiatives
R1 SAR: Efficiently and effectively connect the ▪ Create railway traffic database for passenger and freight and establish internal business intelligent unit responsible to collect
centers of economic activities of the Kingdom by and analyze the data
developing strategic rail infrastructure ▪ Establish task force responsible to reassess existing railway masterplan to define critical future railway developments, taking
into account financial viability and socio-economic impact, in coordination with and engagement of different stakeholders
&
(e.g. MoMRA, Modon)
SRO: Establish a high capacity and high quality ▪ Develop the East-West rail connection Jeddah-Jubail via Sudair (Landbriddge)
railway connection between Dammam and Riyadh ▪ Develop the West coast rail corridor Yanbu-Jizan via Jeddah (including connection to Medinah) to connect the key industrial
which is integrated with other transport modes areas of Jizan and Yanbu (as well as other potentially upcoming areas) to major container ports on the Red Sea (JIP and KAP)
R2 SAR: Improve regional connectivity through ▪ Integration of railway networks with neighboring countries is a responsibility of MoT, and future international expansions will
integrated railway networks with neighboring be covered in railway masterplan
countries to facilitate social, industrial and
commercial activities
R3 SAR: Integrate railway services within themselves ▪ Review and improve management and technical training program at SAR/SRO, with focus on railway and interface
and with other transport modes to ensure operations, to ensure adequate capability and knowledge
efficient logistics operations in the kingdom
&
SRO: Ensure coordination, interoperability, and
interconnectivity between SRO and SAR network

R4 SAR: Strive to operate the safest railway network in ▪ Review and upgrade, SAR/SRO internal safety and security manual, including safety management systems, in accordance with general
MENA safety regulations mandated by various policy makers (Civil Defense, Ministry of Labor, Higher Commission of Industrial Security, PTA)
& ▪ Review and upgrade safety training program for all new and existing employees, and develop SAR/SRO employee safety performance
management system, to enhance safety culture and ensure adherence to safety regulations
SRO: Ensure safety on the railway network system ▪ Empower risk management function within SAR/SRO by providing authority and dedicated financial resources for centralized risk
mitigation programs
▪ Develop security risk profile for SAR/SRO assets to facilitate the deployment of security interventions by MoI
▪ Develop best-in-class emergency response procedures in coordination with civil defense and regional health authorities
R5 SAR: Contribute to improve urban mobility through Integration of rail infrastructure with public transport and triggering of overall demand is a responsibility of MoT and PTA
better integration and coordination of rail
infrastructure with urban planning and public
transport
&
SRO: Trigger public transport demand and support
passenger railway transport by subsidies
R6 SAR: Contribute to the reduction of CO2 emission ▪ HSE department to develop list of environmental protection and energy efficiency initiatives, in accordance to sector policies and
rates by offering an energy efficient mode of national targets
transport ▪ Develop, in collaboration with UK consortium, a capability building program for HSE department
&
SRO: Reduce air pollution including minimizing
energy consumption for railway services

R7 SAR: Realize maximum return on assets ▪ Define and launch asset management function, including review of current stage-gate process, to address the
including total cost of ownership entire value chain of future projects; from business case justification during planning, to seamless integration
optimization between procurement, execution, operation, and disposal
& ▪ Design and deploy an Enterprise Project Management office to ensure effective project governance and delivery
SRO: Maximize SRO revenues from a ▪ Review and upgrade existing maintenance procedures to ensure alignment with actual maintenance requirements,
variety of sources to reduce dependence and deploy continuous improvement mechanism to optimize maintenance operations
on public funding ▪ Design and establish in-house best-in-class procurement & contracting strategy, with focus on optimizing total
cost of ownership
▪ Identify optimum pricing and costing structure for railway services, in coordination with PTA, to prepare for future
market liberalization of railway services
▪ Establish and launch centralized strategic investment unit dedicated to identify and maximize non-fare revenue
streams (e.g real estate land bank, retail in stations, etc.)
▪ Establish, within QA/QC department, a technical team dedicated to maximize local contractor capabilities ensure
adherence to SAR/SRO quality standards through training programs
R8 SAR: Diversify financing sources to minimize ▪ Establish and launch centralized strategic investment unit responsible to identify and promote potential
reliance on public funding opportunities to private investors
& ▪ Develop and publish traffic demand forecasting studies to improve visibility of potential opportunities to private
SRO: Increase private sector participation in operators
delivering railway services

R9 SAR: Establish a world class business model to ▪ Review and update existing SAR/SRO business model and value proposition, in accordance to future railway sector reform
deliver highly efficient railway services
&
SRO: Re-organize SRO and SAR into a single
railway organization
R10 SAR: Foster a customer-focus culture by ▪ Establish and launch customer relations function within SAR/SRO marketing department, for freight and passenger services,
delivering superior railway services that works in coordination with delivery unit, dedicated to improve customer experience and delivery
& ▪ Perform market research study to explore potential customer experience upgrades, and prioritize based on future return
SRO: Build up a high-performing railway
network
R11 SAR & SRO: Implement global best practices in ▪ Establish innovation unit, empowered by sufficient financial resources, dedicated to identifying future trends and disruptive
technology and innovation to improve sector technologies, and propose adoption of innovative solutions for railway sector
performance

challenges and support achieving the objective – SEAPA (1/5)
SEAPA Objectives Proposed Initiatives
P1 Provide efficient and effective ports ▪ Specialize and expand major Kingdom’s ports
network that is integrated with other – Specialize JIP in containers and expand its capacity to TEU eq. 10m by 2030, through operational
improvements
transport modes, to connect the national – Work with KAP to specialize it in containers, focusing on transhipment services, and expand its capacity to
economy to the global market TEU eq. 10m by 2030, through capital investments
– Specialize DMM in containers and expand its capacity to TEU eq. 5m by 2030, through operational
improvements
– Specialize remaining ports, both commercial and industrial, in dry bulk, liquid bulk and/or cargo based
on a case by case analysis of host region respective needs
– Balance liquid/dry bulk requirements across remaining ports by shuffling capacities to meet 2030
demand
▪ Develop logistic platforms for major centre of economic activity
– Build a logistic platform, including dry port, in Al-Khumra that feeds off JIP and acts as a regional
distribution centre
– Build a logistic platform in Dammam that feeds off DMM and acts as a regional distribution centre
– Work with KAEC, to develop a logistics platform in KAEC that feeds off KAP and acts as an export/re-
export centre to East Africa
– Work with Royal Commission of Jubail and Yanbu to develop a logistics platform in Yanbu, that acts as a
petchem and heavy industries distribution hub for the West coast
– Work with Royal Commission of Jubail and Yanbu to develop a logistic platform in Jubail, that acts as a
petchem and heavy industries distribution hub for the East coast
– Work with Royal Commission of Jizan to develop logistics platform, focused on supporting Chinese “One
Belt One Road” project
▪ Optimize the concession regime to support expansion and specialization plans for each port
▪ Review and upgrade the tariff regime to support achievement of the masterplan
SOURCE: Client Interviews, SEAPA Masterplan Initiative, Team Analysis 199
P2 Ensure a safe environment for people, ▪ Design, build and launch a maritime safety unit within SEAPA to manage and upgrade safety across the
property, and cargo and address sector
impacts on surrounding communities in ▪ Review and update, in coordination with PTA, existing maritime safety standards, in accordance to latest
collaboration with IMO standards, and monitor compliance across all ports in the Kingdom
other agencies ▪ Launch awareness and involvement campaigns to educate maritime stakeholders about safety
P3 Distinguish KSA's ports as leaders in ▪ Design, build and launch an environmental protection and energy efficiency unit within SEAPA to reduce
environmental stewardship and the energy footprint of the sector on the Kingdom
compliance by implementing practices ▪ Develop a standardized set of environmental protection and energy efficiency guidelines based on the
that minimize or eliminate latest IMO standards and adapted to the requirements of the Kingdom
environmental impacts and health risks ▪ Design and launch a comprehensive monitoring, and enforcement system to support the reduction of
of port operations and develo-pment on energy footprint across the maritime sector
employees, workers, and communities ▪ Optimize the concession regime to support environmental protection and energy efficiency across the
sector
▪ Upgrade (or support the upgrade of) port infrastructure and superstructure into green and energy
efficient ones
SOURCE: Client Interviews, Team analysis 200

P4 Design and enforce the appropriate ▪ Optimize the concession regime to ensure delivery of port superstructure at optimal TCO, while
concession and contracting structures to accommodating the capacity and energy efficiency prerogatives
optimize ports total cost of ownership ▪ Empower SEAPA (and eventually PortCos) to directly negotiate concession agreements with diff-erent
service providers to maximize value for the maritime sector as opposed to reduce initial costs
▪ Improve current capabilities, tools and systems of the contracts department within SEAPA to adopt a value
based approach to procurement and contracting
P5 Maintain strong and sustainable financial ▪ Create a New Ventures unit in SEAPA that identifies, incubates and spins off financially lucrative ventures,
health: Ensure that local port authorities that could financially support the regulator and sector
are financially self-sustaining and fiscally ▪ Design the right financial flows between SEAPA (as a regulator) and service providers in the sector (i.e.
strong PortCos, OpCos) to minimize SEAPA's reliance on government funding
▪ Setup the right PortCo (with the right asset allocation) to ensure the creation of financially
self-sustainable cluster of ports that could support the largest majority of their CAPEX and
OPEX needs

P6 Create and manage a safe, effective, ▪ Design and launch the new SEAPA organization to act as an independent, empowered regulator of the
and efficient organization that fosters an maritime sector and deliver on the new mandate and requirements
inclusive, open, and team oriented ▪ Develop a performance culture with clear performance pressure, defined roles and responsibilities, KPIs,
culture and provides the opportunity for and career progression options to promote ownership and accountability
the Head Office and individual port
organizations to contribute to port
competitiveness
P7 Enhance customer focus within the head ▪ Establish customer service department within SEAPA with clear KPIs measuring customer satisfaction rate,
office and individual port organizations quality of resolutions and average resolution time
▪ Collect and analyse data related to customer complaints and use as a basis for continuous improvement
P8 Integrate stakeholders into strategy ▪ Establish coordination committee between SEAPA and relevant stakeholders, internal and external, to align
development and implementation on ports strategy development and implementation

P9 Promote innovative solutions to facilitate ▪ Create centre of excellence to research new trends and recommend adoption of latest technologies in the
operational efficiency at each port maritime transport and infrastructure
▪ Finalize development of Saudi ports community digital platform
▪ Develop the right incubating environment and necessary changes in regulations to promote digitization of
the entire maritime value chain and creation of a single digital platform for ports operations, including
electronic transactions for ports services (i.e. iWallet)
▪ Develop the right incubating environment and necessary changes in regulations to promote automated
berth management and allocation

challenges and support achieving the objective – GACA (1/4)
GACA Objectives Proposed Initiatives
A1 Establish air links to support broader economic ▪ Work with airlines to effectively and efficiently activate most attractive international links through creating new/expanding
growth existing bilateral agreements
▪ Work with MoD to lift/reduce no-fly zone restrictions affecting the top-10 most important air corridors over the Kingdom
▪ Support the launch and activation of the international hub system for Jeddah, Riyadh, and Dammam airports
▪ Review and expand airports passenger capacities
– Expand KAIA (JED) to 80m pax p.a. by 2030 through capital expansions and operational improvements
– Expand KKIA (RUH) to 47m pax p.a. by 2030 through capital expansions and operational improvements
– Expand KFIA (DMM) to 21m pax p.a. by 2030 through capital expansions and operational improvements
– Expand PMIA (MED) to 12m pax p.a. by 2030 through capital expansions and operational improvements
– Expand Taif airport (TIF) to 5.5m pax p.a. by 2030 through capital expansion and operational improvements
– Review and adjust capacity of following 9 regional and domestic airports to meet 2030 demand: Abha (6m pax), Ahssa
(1m pax), Qurayat (0.25m pax), Wadi Dawasser (postpone expansion after 2030), Rafha (0.25m pax), Turaif (postpone
expansion after 2030), Wajeh (TBD)1, Arar (0.5m pax), Ola (TBD)1
– Develop the new airports of Farasan and Najran to accommodate traffic of 0.5m pax p.a. for each airport by 2030
– Expand the remaining airports to a combined capacity of 20.5m pax p.a. in accordance to existing GACA expansion plan
▪ Expand airfreight capacity at major airports
– Expand Jeddah cargo city to 2.5m tons p.a by 2030 and transform it into a logistics hub to serve the East African market
– Expand Dammam cargo city to 1m tons p.a by 2030 and transform it into the regional cargo city for the Eastern Province
– Expand Riyadh cargo city to 2m ton p.a by 2030 and transform it into the parcel's hub for the GCC
A2 Facilitate religious tourism to grow KSA aviation ▪ Set-up the Hajj transport committee to promote improved collaboration (planning, operations) among key stakeholders
sector and increase efficiency of intermodal connections to Holy sites
▪ Reconfigure the network of Hajj airports to accommodate extra Hajj and Umra travellers volumes including setting-up all
the necessary air links
1 Wajeh and Ola airport forecasts show very limited demand. However, expansion program should be re-assessed after plans for urban development is completed
SOURCE: Client Interviews, GACA passenger and freight projections, team analysis 204
A3 Support KSA carriers, including new entries, ▪ Develop guidelines for pricing of the air services that ensures affordability of "economy“ of the services in light of
to promote sector employment and new macro-economic trends, e.g. energy prices liberalization
passenger choice of services and airfares ▪ Accelerate localization of supporting services within the airline industry, by initially focusing on training centres and
MRO
▪ Support and promote localization of certain sectors of the aviation industry value chain including OEM
A4 Achieve the highest level of aviation safety, ▪ GACA to accelerate recruiting and on boarding of technical staff to maintain a sufficient number of technical
including full compliance with international resources and avoid generational gap
safety standards ▪ GACA to upgrade its training program (across most important ICAO critical areas) and ensure sufficient financial
resources to roll-out across all technical staff
▪ Review and upgrade current safety protocol, with specific focus on consequence management and penalty
enforcement for failing to report by expediting the implementation of the SSP program
▪ Accelerate the airport certification program focusing on development of safety and operational manuals to ensure
certification of all airports in the Kingdom by 2020

A5 Minimize environmental impact and reduce ▪ GACA to design, launch and enforce mandatory data collection and reporting systems, focused on energy
energy consumption by adopting consumption and environmental impact, to be implemented by airport operators and airlines
international standards, innovative ▪ GACA to design and deploy regulatory framework focused on minimizing energy consumption and environmental
technologies, and sustainable energy impact of service providers (e.g. airport, ground handling, airlines) in accordance with international guidelines and
sources agreements, and national targets
▪ GACA to establish dedicated environmental unit to monitor/enforce current regulations and propose adoption of
new technologies regarding energy efficiency and environmental protection
▪ GACA to launch and implement airport carbon accreditation program for all regional and international airports,
aimed at minimizing overall carbon footprint of airports
A6 Design and enforce the appropriate ▪ GACA/SAVC1 to design and deploy a stage gate process, including comprehensive business case framework, to
concession and contracting structures to enable fact-based investment decisions
optimize assets total cost of ownership ▪ GACA/SAVC to set minimum maintenance standards for service operators (in particular airport operators) that
guarantee optimal lifecycle for aviation assets
▪ GACA/SAVC to establish PMO and build internal project management capabilities to supervise future projects and
TCO requirements
A7 Reduce reliance on public funding by ▪ In coordination with MoF/NCP, review and upgrade existing PPP and concession regulatory framework to
increasing participation and improving accelerate private sector investment in the aviation sector
strategic partnership with the private sector ▪ GACA/SAVC to review and upgrade airport master planning guidelines to include analysis of potential revenues
from non-aviation sources
▪ Develop list of potential projects suitable for private sector participation
▪ GACA/SAVC to develop the appropriate management model to maximize benefits of sector corporatization and
privatization (i.e. optimal airport clustering, financial flows)
1 Saudi Civil Aviation Company
A8 Reaffirm GACA's role as the aviation ▪ GACA to complete development of the “Civil Aviation Act” to define and detail the extent of its future mandate,
regulatory authority focusing on policy, authority and responsibility as regulator of the aviation industry, in preparation of submission to and approval from
regulations and compliance council of ministers
▪ Review and clarify the role and responsibility of holding company vis-a-vis GACA as a regulator in monitoring and
enforcing PPP terms
A9 Integrate aviation sector development with ▪ Analyze and define list of opportunities for future development of intermodal logistics zones, including cargo
other transport modes in the Kingdom villages, at relevant airports (e.g., Rabigh and Hail)
A10 Enhance overall customers’ airport ▪ Review and update mandates of GACA customer service department, including definition of appropriate KPIs and
experience KPTs, to further empower their control over customer experience at airports
▪ Review existing concession operating agreement framework to ensure the delivery of satisfactory level of service
to customers, along with adequate enforcing and monitoring mechanism
▪ Create a prioritized list of customer service interventions at airports and airlines, in order to propose potential
policy interventions to improve customer experience
A11 Adopt global best practices in technology ▪ Establish a dedicated innovation unit within GACA to analyse future trends and recommend adoption of latest
and innovation to improve sector technologies and best practices in the aviation sector to improve performance and customer experience, such as
performance and customer experience real-time tracking of bags, biometric self-service systems, and big data analytics to optimize slot allocation

Contents

▪ NTS 2030
208
The prioritization process will provide meaningful insight necessary to develop
implementation roadmap
Approach
▪ Prioritize mode-specific initiatives based on
feasibility and impact
Mission &
vision ▪ Develop charters for prioritized initiatives
▪ Define initiative owner owners and key stakeholders
– Evaluate benefit and impact of the program
Objectives – Develop a list of tasks MoT should undertake to
successfully complete each of the priority
initiatives
– Assess potential risks and associated mitigation
plans
Strategic initiatives
– Identify required resources
– Estimate required budget for the initiative

The strategic initiatives for each entity were ranked based on a survey assessing their
impact and feasibility
Methodology Prioritization matrix
▪ Surveys were distributed 5 Category 1: Initiatives with highest impact

to ~20 key people from
and feasibility-should be prioritized and
each 3 1 implemented immediately
transport entity
▪ Participants were asked 4
to score initiatives based Category 2: Initiatives with high impact
on two metrics; impact Feasibility
and lower feasibility- should be pursued
and feasibility, through a thorough planning and
considering all economic, 3 implementation process
social, technical and
strategic factors 4 2 Category 3: Initiatives with high feasibility
▪ Scores from 1-5 were and lower impact- quick wins that should
assigned across each 2 be pursued to build momentum
metric, and the initiatives
were ranked and
prioritized accordingly Category 4: Initiatives to be completed
1 by 2030, but scheduled according to
1 2 3 4 5
budget availability
Impact
210
Roads Sector- Prioritization summary
Overall results Key takeaways

Minimum Average Maximum ▪ Road safety is a top priority for MoT and the
Impact Kingdom, both for end users and workers
3.2 3.9 4.5 involved in the construction and maintenance
(Out of 5)
of the road network,
Feasibility ▪ Highly ranked initiatives revolved mainly
2.9 3.8 4.4
(Out of 5) around the theme of reducing congestion, at
border crossings, entrances to major urban
Highest priority initiatives areas as well as within the boundaries of
major cities through the construction of ring
1 Upgrade the capacity of the top-5 border crossings with the UAE, Qatar,
roads
Bahrain, Kuwait and Jordan (on behalf of MoT)
▪ Limited availability of data continues to
2 Reinforce the monitoring and enforcement procedures for road projects hinders the ability of MoT Roads Deputyship
(new and under maintenance) across the Kingdom to ensure adherence to plan adequate intervention, in respect to
to latest safety standards several dimensions, such as capacity
expansions, safety management, etc.
3 Expand capacity of Makkah - Jeddah link, along the Riyadh-Jeddah
Corridor, to maintain level of service C by 2030
SOURCE : MoT Prioritization Survey 211

Road Sector - Prioritized Initiatives (1/7)
Initiative Charters Developed Category 1 Category 2 Category 3 Category 4
Initiative Impact (out of 5) Feasibility (out of 5)
Upgrade the capacity of the top-5 border crossings with the UAE, Qatar,
1 4.3 4.4
Bahrain, Kuwait and Jordan, in addition to Iraq (on behalf of MoT)
Reinforce the monitoring and enforcement procedures for road projects (new and
2 4.4 4.1
under maintenance) across the Kingdom to ensure adherence to latest safety standards
Expand capacity of Makkah - Jeddah link, along the Riyadh-Jeddah Corridor,

3 4.5 4.0
to maintain level of service C by 2030
Develop and populate the comprehensive traffic database to facilitate forecasting,

4 4.3 4.0
future master planning and capacity upgrades to the road network
Create repository of road safety data, in coordination with other stakeholders

5 such as MoI, MoH, MoMRA and SRCA, to analyze critical information with regards to 4.2 4.0
traffic safety and plan potential interventions
Review and update existing road design safety standards in accordance to

6 4.0 4.2
latest international best practices
Evaluate the feasibility and launch the construction of an additional ring

7 4.1 4.0
road for Makkah to decongest the urban area within Makkah

Category 1 Category 2 Category 3 Category 4
Evaluate the feasibility and launch (if required) the construction of the Khamis Mushait/
8 4.1 4.0
Abha ring road to decongest the urban area within Khamis Mushait/Abha
Launch a national road safety centre to coordinate the different road safety units across
9 different ministries (i.e. MoH, MoI, MoMRA, SRCA) and drive a coordinated national 4.1 4.0
road safety strategy
Design, build and deploy an MoT Roads PMO supported by experienced professionals
10 4.0 4.0
to ensure effective oversight over projects budgets and timelines
Evaluate the feasibility and launch (if required) the construction of the
11 4.0 4.0
Tabuk ring road to decongest the urban area within Tabuk
Develop stage gate process to optimize investment decisions on future projects

12 4.0 4.0
and create an asset management mind-set within the department
Evaluate the feasibility and launch (if required) the construction

13 4.0 4.0
of the Al Hofuf ring road to decongest the urban area within Al Hofuf
Design and implement an optimized contracting and procurement strategy,

including best in class RfQ and RfP procedures, that minimizes TCO,
14 4.0 4.0
through adoption of innovative methods such as output based standards,
performance based contracts, DBM, etc.

Launch the first greenfield toll road (Mekkah - Jeddah, 3rd highway)
15 4.0 3.9
under a PPP arrangement by 2019
16 Complete the Madinah ring road to decongest the urban area within Madinah1 4.4 3.9
Build truck-yards/truck parking at the entrance of Riyadh, Jeddah,

17 4.4 3.8
Madinah and Dammam (on behalf of MoT)
18 Complete the Riyadh ring road to decongest the urban area within Riyadh 4.3 3.9
19 Complete the Jeddah ring road to decongest the urban area within Jeddah 4.3 3.9
Work with MoMRA to review and clarify authority split on existing roads between
20 the two entities (e.g portions of King Fahd Road are under MoT and others 4.1 3.9
under MoMRA), and develop a consistent system for the future classification
21 Launch the first set of brownfield toll roads under a concession arrangement by 2020 4.1 3.4
1 De-prioritize after stress-test trough KSA transport model

Identify and deploy necessary infrastructure interventions required to maintain

22 all major roads in the Kingdom at a IRAP rating of 3 stars or above 4.3 2.9
(according to latest safety standards) to reduce accidents and fatalities
Launch a communication, awareness and public engagement campaign for road

23 3.8 4.2
safety across the Kingdom
Build and continuously improve the capabilities of the road safety unit
24 3.9 4.0
through classroom/on the job training
Review and upgrade road design and material standards, to meet global best-practice
for environmental protection/energy efficiency to reduce the roads' carbon footprint
25 3.7 4.1
during construction, operation and maintenance (eg. Specifying minimum amount of
recycled materials in construction, using warm-mix asphalt for paving, etc.)
Create an asset management unit responsible for developing and
26 implementing private sector agreements, including creation of a PPP 3.8 3.9
framework and managing revenues from road assets
Design and deploy employee performance management system and career

27 progression framework, to promote ownership and accountability, and 3.5 4.0
recognize high-performing individuals
28 Complete the Taif ring road to decongest the urban area within Taif 3.9 3.8

Create centre of excellence to research new trends and partner with

29 local universities and private sector companies, to recommend adoption of latest 3.8 3.8
technologies in the transport infrastructure sector
Continuously review and maintain minimum level of service C along major

30 transport corridors through adoption of appropriate capacity upgrades 3.9 3.6
(e.g., adding lane, adopting a 2+1 lanes option, etc.)
Work with all relevant entities, such as MoMRA, Ministry of Housing, Modon, RCJY,
31 to identify and assess the impact of future traffic generators, and update the 3.7 3.6
transport masterplan accordingly
32 Complete the Al-Baha ring road to decongest the urban area within Al-Baha 3.6 3.7
Develop project-team framework for major projects, including suitable resource

33 allocation based on project value, and seamless integration between design, 3.4 3.9
procurement and execution phases
Design and deploy customer service department that measures customer

34 satisfaction rating (e.g. % of complaints resolved on time, quality of resolution, etc.) 3.5 3.8
and links it to clear business outcomes
Identify and launch other private sector opportunities to monetize roads

35 3.8 3.5
through land asset management, rest area development and roadside billboards

Develop and deploy a highway traffic control management system along major
36 corridors in the kingdom, including development of data control centres, 3.7 3.6
to monitor traffic conditions and plan necessary interventions
Develop the right incubating environment and necessary changes

37 3.6 3.5
in regulations to promote advanced materials for construction of roads
Launch the second set of brownfield toll roads (remaining highways)

38 3.5 3.6
under a concession arrangement 2025
Redesign the organization structure (including processes, systems, etc…)

39 3.4 3.5
to be customer centric and improve customer journey
Work with MoMRA to deploy charging points across all inter-city petrol
40 3.2 3.5
stations (on behalf of MoT)
Work in coordination with MoMRA, municipalities and PTA to evaluate the feasibility
41 of implementing alternative initiatives to ring road construction to decongest urban 3.7 3.0
areas such as congestion charges, active traffic management systems and carpool lanes
Develop the right incubating environment and necessary changes in regulations to

42 3.5 3.1
promote photovoltaic roads
Work with MoMRA to identify locations for charging points across the top-20 cities
43 3.3 3.2
and deploy them (on behalf of MoT)

44 Design and develop the North entrance road to Abha as a dual carriageway1 N/A N/A
45 Design and develop the South entrance road to Abha as an expressway1 N/A N/A
1 Initiative identified after testing roads network through KSA transport model
Initiative Charter- Upgrade the capacity of the top-5 border crossings with the UAE, Qatar, Bahrain, Kuwait
and Jordan, in addition to Iraq (1/2) PRELIMINARY
Entity Responsible Current Situation and Initiative Description Initiative Number

Ministry of Transportation ▪ The existing border crossings into/out of the Kingdom are currently over capacity, which places several
challenges on enabling the transport of people and goods regionally and internationally. This initiative
will aim to assess and upgrade the capacity of KSA's border crossings with all neighboring countries to Team setup
optimize the waiting times at the border and facilitate trade and travel
Initiative ▪ Deputy Minister for
sponsor Projects
Initiative ▪ Head of Construction

Owner PMO
Relevant Strategic Expected impact upon completion
Objective Key Stake- ▪ Ministry of Transport
▪ Reduction of border crossing wait times for freight trucks to less than 6 hours for each border holders ▪ Ministry of Interior
1) Ensure efficient and
effective internal and ▪ Ministry of Finance
external links to priority ▪ Saudi Customs
population and value
chain centers
Initiative KPIs Challenges addressed by this initiative
▪ Suboptimal use of intermodal solutions to

Target Target Target Target effectively and efficiently move passengers and
KPI Description Baseline 2018 2019 2020 2021 freight across the Kingdom
Initiative duration: ▪ Poor quality of trade related infrastructure, in
48 months % of projected particular logistics platforms
% of project ▪ Border crossings do not include modern facilities
Initiative start: Jan-18 completed by - 10% 40% 70% 100%
completion for trucks (e.g. parking, waiting areas)
construction progress
Initiative end: Dec-21
219
Initiative Charter- Upgrade the capacity of the top-5 border crossings with the UAE, Qatar, Bahrain, Kuwait
and Jordan, in addition to Iraq (2/2) PRELIMINARY
Suggested approach Key milestones

▪ Assess daily traffic backlog at each of the border crossings and determine existing ▪ Complete traffic study by March 2018
bottlenecks, through traffic studies and surveys ▪ Perform feasibility and business case by June 2018
▪ Determine feasibility and perform business case to evaluate the type of expansion
▪ Complete preliminary design by March 2019
required
▪ Create project team to supervise and manage all project phases, from tendering, design ▪ Project award by September 2019
to construction ▪ Complete construction and acceptance by December 2021
▪ Start preparation of procurement and delivery phase
Risks and Mitigation Plan Severe risk Moderate risk Mild risk
▪ Coordination with other stakeholders ▪ Create coordination task force with regular meetings for the initiative
▪ Limited traffic data availability ▪ Perform traffic surveys and install counters at borders
▪ Budget availability ▪ Prioritize border crossings interventions to optimize budget allocation
▪ Limited capabilities for MoT to design and manage initiative ▪ Hire external engineering and PM support
▪ Limited human resources to execute initiative plan ▪ Create dedicated initiative team at start of study and ensure continuity
▪ Limited cooperation from customs authority ▪ Establish early coordination with Customs to ensure buy-in and cooperation
Budget Resources Required

▪ 1 Project Manager, 5 Junior Project Managers
Budget 2018 2019 2020 2021 Total
▪ 2 Design Engineers
SAR Mn 15.3 39.2 39.2 39.2 132.9 ▪ 2 Quantity Surveyors
220
Initiative Charter- Develop and populate the comprehensive traffic database to facilitate forecasting, future
master planning and capacity upgrades to the road network (1/2) PRELIMINARY

Ministry of Transportation ▪ The limited availability of data hinders the ability of the Roads Deputyship to properly plan future roads
expansion projects, as well as understand criticalities, both from a capacity and safety perspective along
the KSA road network. This initiative will focus on the creation of a comprehensive traffic database to Team setup
support fact-based planning and investment decisions, as well as identify and promote specific projects
suitable for private sector participation Initiative ▪ Deputy Minister for
sponsor Strategic Planning
Initiative ▪ GM Planning
Owner
Objective Key Stake- ▪ MoMRA
▪ Improvement of planning and decision making process holders ▪ Regional Authorities
1) Ensure efficient and ▪ Facilitation of intervention and project prioritization
effective internal and ▪ Ministry of Health
external links to priority ▪ Director of Digital
population and value Transformation
chain centers
▪ Limited availability of historical data for capacity and
utilization of road assets to act as a basis for
KPI Description Baseline Target 2018 planning and identification of demand generators
Initiative duration: ▪ Lack of clear guidelines on data that needs to be
12 months collected to support demand forecasting
Initiative start: Jan-18 - - ▪ Lack of information on end users’ behavior and
mode preferences to support decisions on network
Initiative end: Dec-18 expansion
221
Initiative Charter- Develop and populate the comprehensive traffic database to facilitate forecasting,
future master planning and capacity upgrades to the road network (2/2) PRELIMINARY

▪ Deploy traffic database team to collect and analyze data ▪ Complete list of data to collect and identify suitable software and IT tools by Feb
▪ Identify list of types of data that needs to be collected 2018
▪ Identify necessary software and IT tools to support data collection and analysis ▪ Prepare IT and data and collection platform by Sep 2018
▪ Design and prepare IT and data collection platform
▪ Complete test of IT platform and launch pilot program by Dec 2018
▪ Design and launch pilot program
▪ Launch data collection
▪ Implement continuous improvement by increasing network coverage of data collection
▪ Limited available budget to create and maintain database ▪ Ensure allocation of dedicated budget to traffic database team to support launch
and maintenance of database, and its future expansion
▪ Challenging implementation of IT platform for data collection ▪ Identify with IT department potential challenges for implementation prior to
selecting optimal tool

▪ 1 IT Project Manager, 4 IT Analysts
Budget 2018 2019 Total
▪ 1 Planning Manager , 1 Planning Analysts
SAR Mn 6.5 9.4 15.8 ▪ Specialized IT Consulting Team
▪ Specialized Traffic Consultant
222
Initiative Charter- Reinforce the monitoring and enforcement procedures for road projects (new and under
maintenance) across the Kingdom to ensure adherence to latest safety standards (1/2) PRELIMINARY

Ministry of Transportation ▪ The Roads Deputyship in Ministry of Transport oversees a large and expansive network of
roads covering the entire Kingdom. In order to ensure the safety of the Kingdom’s roads, the
Deputyship has a key role in ensuring the best in class safety standards are followed and Team setup
enforced across all new construction and maintenance projects. This initiative will focus on
improving the monitoring process across all stakeholders to ensure projects are Initiative ▪ Assistant Deputy Minister-
implemented with optimum safety standards sponsor Maintenance
Initiative ▪ GM for Maintenance

Owner
Objective Key Stake- ▪ Ministry of Interior and Regional police
▪ Reduction of border crossing wait times for freight trucks to less than 6 hours for each holders authorities
2)Minimize the rate of border
transportation accidents
▪ Ministry of Labor
and fatality and create the
▪ MoMRA
basis for a safety-oriented
▪ General Managers for Areas
culture
▪ Lack of coordination between MoT and relevant

Target Target Target stakeholders in order to take prompt decisions in
KPI Description Baseline 2017 2018 2019 regard to safety and maintenance standards
Initiative duration: implementation
Continuous No. of Safety Annual no. of safety ▪ Limited support from other entities to prevent
Initiative start: Sep-17 violations by violation by contractors - … … … damages to MoT safety infrastructure
contractors under Roads deputyship ▪ Poor safety behavior, and practices and
Initiative end: --- adherence to safety regulations
223
Initiative Charter- Reinforce the monitoring and enforcement procedures for road projects (new and under
maintenance) across the Kingdom to ensure adherence to latest safety standards (2/2) PRELIMINARY

▪ Create dedicated initiative team to ensure successful implementation of the initiative ▪ Create dedicated team by October 2017
▪ Review and update role and responsibility of regional HSE manager position ▪ Complete review of standards, processes and necessary resources by December
▪ Review monitoring processes to identify existing challenges against implementation 2017
▪ Review safety standards during project implementation and align with Ministry of Labor
▪ Ensure deployment of regional HSE managers by March 2018
▪ Design and implement training program for contractors to raise safety awareness and
educate don latest safety standards ▪ Launch contractor program by June 2018
▪ Ensure deployment of regional HSE managers in each region
▪ Limited buy-in from contractors ▪ Issue adequate policies to support initiative and safety program (eg. Compulsory
training program, ban of unsafe contractors from bidding for MoT projects)
▪ Limited financial and human resources to implement initiative ▪ Provide annual dedicated budget to regional HSE managers

▪ 1 Initiative Manager, 2 Analysts (Safety and Construction)
Budget 2018 Total
▪ Construction HSE Consulting Support
SAR Mn 5.6 5.6
224
Public Transport Sector - prioritization summary

Minimum Average Maximum ▪ The setting of standards and regulations,
Impact specifically in regards to transport safety, is
3.0 4.0 4.6 one of the top priorities for PTA, which
(Out of 5)
emphasizes its role as the main transport
Feasibility regulatory entity
3.3 4.2 4.8
(Out of 5) ▪ Development of public transport systems is
one of the fundamental duties of PTA, as
Highest priority initiatives highlighted by the high scores of the
respective initiatives
1 Review and upgrade safety standards for public transportation vehicles
(rolling stock, buses, taxis), commercial trucks, and maritime transport ▪ Adoption of digital technologies combined
(boat, ferries, etc.) with customer satisfaction ranked highly in
the priority of PTA, indicating the forward
2 Review and upgrade safety standards for public transportation looking vision and aspiration of the
infrastructure (e.g. metro system, LRTs, BRTs) organization and its innovative mindset
3 Develop or refine, in coordination with Ministry of Municipal and Rural
Affairs/Municipalities, public transport masterplans for selected cities that
qualify under PTA requirements and criteria, including financing options
SOURCE : PTA Prioritization Survey 225

Public Transport Sector - Prioritized Initiatives (1/5)
Review and upgrade safety standards for public transportation vehicles (rolling stock,
1 4.5 4.8
buses, taxis), commercial trucks, and maritime transport (boat, ferries, etc.)
Review and upgrade safety standards for public transportation infrastructure

2 4.5 4.7
(e.g. metro system, LRTs, BRTs)
Develop or refine, in coordination with Ministry of Municipal and Rural Affairs/

3 Municipalities, public transport masterplans for selected cities that qualify under 4.5 4.5
PTA requirements and criteria, including financing options
Design and propose regulatory framework and standards for the public transport sector
4 (transportation law), including bylaws, specific standards and regulations for different systems, 4.4 4.5
in accordance to and within the boundaries of the established mandate of the organization
Refine or confirm, in coordination with Ministry of Municipal and Rural Affairs/

5 Municipalities, existing public transport masterplans for major cities in KSA, 4.3 4.4
including identifying financing options
Develop and launch PTA web portal (transport gate) to provide critical services
6 4.1 4.4
(e.g., licensing) and facilitate customer interaction with the organization
Develop and deploy, in coordination with other relevant stakeholders, environmental

7 protection and energy efficiency regulations for buses, trucks, and taxis in accordance with 4.3 4.2
the latest global standards

Develop and launch PTA digital platform (Wasel) to collect, monitor, and analyse
8 relevant data (e.g. real-time location, driver information, etc…) 4.2 4.2
on all public transport systems in the Kingdom
Develop and deploy environmental protection and energy efficiency regulations

9 4.2 4.2
for maritime transport, in line with IMO regulations and global best practices
Develop and deploy, in coordination with other relevant stakeholders,

10 environmental protection and energy efficiency regulations for rolling stock 4.2 4.1
and rail systems
Develop a common set of technical standards for the freight transport

11 (e.g., commercial trucks, freight trains, etc.) across the Kingdom, taking 4.2 4.0
into consideration the specific operating requirements
Setup and activate traffic database and IT platform for intra-city traffic to
serve as a decision support tool for future urban public transport masterplans
12 4.0 4.1
(starting with the largest cities and working with municipalities to promote and
support the system for smaller qualified cities)
Work with Ministry of Municipal and Rural Affairs/Municipalities and other
13 governmental entities (e.g., MoT, MoI, MoF, etc.) to ensure implementation 4.6 3.8
of public transport masterplans
Review and upgrade operating standards for the operation of public transport systems
14 4.3 3.8
(metro, buses, taxis) and commercial trucks

Enhance the licensing regulations and procedures to include mandatory

15 4.3 3.8
testing and monitoring of emission and environmental standards
Develop a city specific tariff scheme for the use of public transportation systems,
16 to ensure affordability, and balance between social benefits for the public 4.3 3.7
and financial profits of the operators
Work with Ministry of Interior to define the national framework for private vehicle
17 4.0 3.8
licensing cost
Work with Ministry of Energy, Industry and Mineral Resources (MEIMR) to define
18 4.0 3.8
the national framework for fuel surcharge
Develop a common set of technical standards for public transport systems

19 (e.g., metro and rail rolling stock, buses, etc…) across the different cities, 4.1 3.6
taking into consideration the specific operating requirements
Develop and deploy comprehensive training program for all employees to accelerate
20 3.8 4.5
on-boarding of new hires and enhance existing in-house capabilities
Design and deploy comprehensive PTA employee performance management system,

21 including clear KPIs and career progression framework, to increase accountability 3.7 4.4
and reward high performing employees

Perform comprehensive study on possible revenue generation sources

22 3.7 4.1
for PTA to minimize the governmental financial support to the organization
Establish a PTA centre of excellence by empowering the current studies

23 department, to monitor, adopt and regulate new technologies for the 3.4 4.1
benefit of public transport sector
Develop and deploy mandatory safety training program for public transport operators,
24 3.8 3.8
to enhance safety culture and ensure compliance with safety regulations
Design and launch awareness and promotion campaign for utilization

25 3.8 3.8
of public transport services
Expand the current monitoring, inspection and enforcement system from taxis
26 to all other public transport vehicles including metros, buses and trucks 3.9 3.7
across the Kingdom
Create dedicated investment unit with necessary capabilities to facilitate

27 private investment attraction and support other relevant entities (e.g.. Municipalities) 3.8 3.7
in the preparation and execution of successful public transport PPP projects
Create a list of future projects suitable for private sector participation, based on the
28 3.5 3.8
outcome of the public transport masterplans

Develop regulatory framework and general guidelines for private sector

29 3.6 3.6
participation in public transport projects
Develop a standardized set of guidelines to ensure consistent application

30 of latest technologies by public transport operators 3.6 3.6
Develop and deploy, in conjunction with the Municipalities and Ministry of Municipal
and Rural Affairs, urban tolls, parking fees, no-car zones and other specific urban
31 3.5 3.5
policies to stimulate demand for public transport with specific focus for the city of Riyadh,
Jeddah, Dammam, Mekkah, Madinah
Develop the right regulatory environment to promote use of big data to analyse
passenger flows, road parameters and socio economic factors to optimize and design
32 3.4 3.5
future integrated networks (across all public transit means) where customized customer
experience will be key differentiator
Work with the municipalities of the largest 5 cities in the Kingdom to identify and deploy
33 the most appropriate ITS (intelligent traffic system) and TMS (traffic management system) 3.4 3.3
to suit the individual cities needs
Perform city-specific feasibility studies to recommend the adoption of low/zero

34 3.0 3.3
emission vehicles for public transport systems

Initiative Charter- Review and upgrade safety standards for public transportation vehicles (rolling stock,
buses, taxis), commercial trucks, and maritime transport (1/2) PRELIMINARY
Entity Responsible Current Situation and Initiative Description Team setup

▪ One of the main responsibilities of PTA's role as a regulator will be to create standards and specifications Initiative ▪ President of PTA
for public transport vehicles across all modes of transport. This initiative will focus on the review and sponsor
upgrade of existing safety standards and regulations in accordance to global best practices as a critical
step in ensuring a safe and reliable public transport system Initiative ▪ VP Strategic Planning
Owners (for integration)
Relevant Strategic
▪ VP Land Transport
Objective
▪ VP Railway
▪ VP Maritime
Ensure adoption and
compliance with the
Challenges addressed by this initiative
highest level of safety and Key Stake- ▪ Ministry of Transport
quality standards for the ▪ Lack of clear set of regulation on safety due to limited development of public transport in KSA holders ▪ Ministry of Interior
public transport sector ▪ Poor safety culture and adherence to safety regulations (e.g., speed limits) ▪ SEAPA
▪ Low consequences of safety violations ▪ SAR/SRO
▪ SASO
Initiative KPIs Expected impact upon completion

▪ Improved overall safety for transport sector
Target Target Target Target ▪ Contribute to reduction of road fatalities and
KPI Description Baseline 20XX 20XX 20XX 20XX achieve national target of 8.0 fatalities/100,000
Initiative duration: inhabitants
18 months ▪ Contribute to achieve PTA target of 2.0
- - - ... - ... ... injuries/million public transport journeys
Initiative start: Sep-17
Initiative end: Feb-19
231
Initiative Charter- Review and upgrade safety standards for public transportation vehicles (rolling stock,
buses, taxis), commercial trucks, and maritime transport (2/2) PRELIMINARY

▪ Create dedicated project team within PTA for each of the different modes of transport, ▪ Establish project teams by October 2017
to review and upgrade safety standards ▪ Onboard technical consultants by January 2018
▪ Onboard technical consultants to support project teams
▪ Complete review and upgrade of standards, including creation of implementation
▪ Review and upgrade existing standards for each transport mode
plan, by November 2018
▪ Create implementation plan to roll out and enforce new safety standards and
regulations on new and existing public transportation vehicles ▪ Launch awareness campaign by December 2018
▪ Launch awareness campaign to highlight new safety standards
▪ Limited budget and resources to implement plan ▪ Ensure sufficient allocation of budget and resources to implement initiative
▪ Challenging implementation of new standards due to fragmented market and large ▪ Engage with sector players to inform and collect feedback before
stock of sub-standard vehicles implementation of new standards
▪ Ensure sufficient transition time for adoption of new safety standards

▪ Specialized Engineering consulting support, for each mode
▪ 3x Project Teams: 1 Initiative Manager, 2 Technical Analysts, for each mode
Total 13.4 0.8 14.2
232
Initiative Charter- Develop or refine, in coordination with Ministry of Municipal and Rural Affairs/Municipalities,
public transport masterplans for selected cities that qualify under PTA requirements and criteria, including
financing options (1/2)
PRELIMINARY

▪ One of the key functions of PTA in its role to stimulate the use of public transport, will be to identify Initiative ▪ President of PTA
target cities and create public transport master plans for them. This initiative will focus on creating sponsor
suitable guidelines for public transport masterplans, and working with MoMRA and other relevant
municipalities to develop new or refine existing masterplans, and follow up to ensure their Initiative ▪ VP Strategic Planning
implementation Owner
Relevant Strategic
Challenges addressed by this initiative
Provide an effective and
▪ Limited integration and coordination across public transport systems holders ▪ MoMRA
efficient public transport
▪ Poor integration of public transportation during the urban planning phase resulting in suboptimal public ▪ Municipalities
transport network that is not integrated with remaining transport modes ▪ SAR/SRO
system that is integrated
with other modes and
▪ Lack of clear procedure on projects selection ▪ GACA
stakeholders
▪ Limited integration between the national spatial masterplan and infrastructure plan within the kingdom ▪ City Development
▪ Limited interaction between PTA and different authorities to deliver effective multimodal transport Authorities (e.g. ADA)
network

▪ Contribute to enhanced livability
Target Target Target Target ▪ Contribute to achievement of national target of
KPI Description Baseline 20XX 20XX 20XX 20XX reduction of urban congestion (Reduction to 10
Initiative duration: peak hours annually spent in congestion)
36 Months
Initiative start: Jan-18 - - - ... - ... ...
233
Initiative Charter- Develop or refine, in coordination with Ministry of Municipal and Rural Affairs/Municipalities,
public transport masterplans for selected cities that qualify under PTA requirements and criteria, including
financing options (2/2)
PRELIMINARY

▪ Establish initiative team to drive development of masterplans ▪ Establish initiative team by January 2018
▪ Onboard specialty consultants to support during development of masterplans ▪ Complete masterplanning guidelines and identify target cities by February 2018
▪ Define, and align with MoMRA, master planning guidelines for public transport in the
▪ Onboard consultant by March 2018
Kingdom
▪ Develop public transport masterplans for selected cities ▪ Complete public transport masterplans for selected cities and implementation
▪ Design and syndicate with municipalities implementation program to ensure plan by December 2019
development of public transport systems
▪ Limited budget to implement initiative ▪ Ensure allocation of sufficient budget throughout duration of the initiative
▪ Challenging coordination with relevant stakeholders (e.g. MoMRA, city ▪ Establish continuous coordination and collaboration with MoMRA and development
development authorities) authorities throughout initiative progress
▪ Assess possibility of including MoMRA representative during the development of
public transport masterplans

▪ 1 Manager, 1 Analyst per each masterplan
Budget 2018 2019 2020 Total
▪ Specialist consulting support
Total 39.6 38.4 21.1 99.1
234
Initiative Charter-Design and propose regulatory framework and standards for the public transport sector (transportation
law), including specific standards and regulations for different systems, in accordance to and within the boundaries of the
established mandate of the organization (1/2) PRELIMINARY

▪ The recently established Public Transport Authority is in process of detailing its role and mandate in Initiative ▪ President of PTA
accordance to the Royal Decree issued in 2016. The issuance of a transportation law will enable PTA to sponsor
perform its duties as the main public transport regulatory entity. This initiative will focus on the creation
of said transport law, including the design of specific standards and regulations for different systems, and Initiative ▪ VP Strategic Planning
its approval from relevant governmental body Owner
Relevant Strategic
holders ▪ MoMRA
Develop a regulatory ▪ SEAPA
framework for the public ▪ Ministry of Economy and
transport sector Challenges addressed by this initiative
Planning
▪ Weak regulatory framework for the public transport sector
▪ Lack of clarity of PTA responsibility vis-a-vis with other entities

▪ Clarify the extent of the role and responsibility of
Target Target Target Target PTA
KPI Description Baseline 20XX 20XX 20XX 20XX ▪ Improve operational efficiency of the organization
Initiative duration: through clear definition of roles and
18 months responsibilities
Initiative start: Sep-17 - - - ... - ... ...
235
Initiative Charter-Design and propose regulatory framework and standards for the public transport sector (transportation
law), including specific standards and regulations for different systems, in accordance to and within the boundaries of the
established mandate of the organization (2/2) PRELIMINARY

▪ Onboard transportation consultant (if necessary) to support definition of preliminary ▪ Define preliminary framework for PTA by December 2017
regulatory framework of PTA ▪ On-board legal consultant by March 2018
▪ Define preliminary framework and structure to identify boundaries of PTA authority
▪ Complete first draft of transportation law by October 2018
▪ On-board specialized legal consultant to detail KSA transportation law
▪ Syndicate and align with relevant stakeholders ▪ Complete syndication and submit for approval by February 2019
▪ Obtain approval from relevant governmental body
▪ Challenge in syndication with relevant stakeholders ▪ Ensure early engagement with relevant stakeholders to have sufficient time for
alignment and syndication
Budget 2018 Total

▪ 1 Project Manager, 1 Analyst
▪ (Transportation Consultant Support)
Total 12.9 12.9 ▪ Specialized Legal support
236
Rail Sector - prioritization summary

Minimum Average Maximum ▪ Passenger and employee safety, along with
Impact network security, is a top priority for the rail
(Out of 5) 3.4 3.9 4.5 sector, as evident by the high scoring
initiatives pertaining to safety manuals,
Feasibility emergency response procedures, etc.
(Out of 5) 3.4 4.0 4.3 ▪ The nature of the future development of the
rail network, will be of critical importance to
Highest priority initiatives support the improvement of the logistics
capabilities of the Kingdom, as mandated by
1 Establish task force responsible to reassess existing railway masterplan to
define critical future railway developments, taking into account financial Vision 2030
viability and socio-economic impact, in coordination with and ▪ Benefits provided by future railway projects as
engagement of different stakeholders (e.g. MoMRA, Modon) well as sustainability of the entire railway
network needs to be analyzed, from a
2 Create railway traffic database for passenger and freight and establish financial and socio-economic perspective, to
internal business intelligent unit responsible to collect and analyze the ensure healthy development of the sector
data
3 Review and upgrade, SAR internal safety and security manual, including
safety management systems, in accordance with general safety
regulations mandated by various policy makers
SOURCE : Rail Sector Prioritization Survey 237

Rail Sector - Prioritized Initiatives (1/4)
Initiative1 Impact (out of 5) Feasibility (out of 5)
Establish task force responsible to reassess existing railway masterplan to define

critical future railway developments, taking into account financial viability and
1 socio-economic impact, in coordination with and engagement of different 4.4 4.3
stakeholders (e.g. MoMRA, Modon)
Create railway traffic database for passenger and freight and establish internal
2 4.1 4.3
business intelligent unit responsible to collect and analyze the data
Review and upgrade, SAR internal safety and security manual, including safety
management systems, in accordance with general safety regulations mandated by
3 4.2 4.1
various policy makers (Civil Defense, Ministry of Labor, Higher Commission
of Industrial Security, PTA)
Develop security risk profile for SAR assets to facilitate the deployment of security
4 4.1 4.1
interventions by MoI
Identify optimum pricing and costing structure for railway services, in coordination
5 4.1 4.1
with PTA, to prepare for future market liberalization of railway services
Develop best-in-class emergency response procedures in coordination with

6 4.5 3.9
civil defense and regional health authorities
Define and launch asset management function, including review of current

stage-gate process, to address the entire value chain of future projects; from business
7 4.3 3.9
case justification during planning, to seamless integration between procurement,
execution, operation, and disposal
1 Initiatives list does not include capital intensive projects that need to be considered category 1 priority
Review and update existing SAR business model and value proposition,
8 4.3 3.8
in accordance to future railway sector reform
Develop, in collaboration with UK consortium, a capability building program

9 4.0 3.9
for HSE department
SAR HSE department to develop list of environmental protection and

10 4.1 3.8
energy efficiency initiatives, in accordance to sector policies and national targets
Perform market research study to explore potential customer experience

11 3.8 4.3
upgrades, and prioritize based on future return
Review and improve management and technical training program at SAR, with
12 3.6 4.3
focus on railway and interface operations, to ensure adequate capability and knowledge
Develop and publish traffic demand forecasting studies to improve visibility

13 3.8 4.1
of potential opportunities to private operators
Design and establish in-house best-in-class procurement & contracting strategy,

14 3.8 4.1
with focus on optimizing total cost of ownership

Review and upgrade existing maintenance procedures to ensure alignment with

15 actual maintenance requirements, and deploy continuous improvement 3.8 4.1
mechanism to optimize maintenance operations
Review and upgrade safety training program for all new and existing employees,
16 and develop SAR employee safety performance management system, to enhance 3.8 4.0
safety culture and ensure adherence to safety regulations
Empower risk management function within SAR by providing authority and dedicated
17 3.7 4.0
financial resources for centralized risk mitigation programs
Establish and launch customer relations function within SAR marketing department,
18 for freight and passenger services, that works in coordination with delivery unit, 3.6 4.1
dedicated to improve customer experience and delivery
Establish and launch centralized strategic investment unit dedicated to identify

19 3.7 3.9
and maximize non-fare revenue streams (e.g real estate land bank, retail in stations, etc.)
Establish and launch SAR centralized strategic investment unit responsible

20 3.6 3.9
to identify and promote potential opportunities to private investors
Design and deploy an Enterprise Project Management office to

21 3.8 3.7
ensure effective project governance and delivery

Establish innovation unit, empowered by sufficient financial resources, dedicated to

22 identifying future trends and disruptive technologies, and propose adoption of innovative 3.4 3.6
solutions for railway sector
Establish, within QA/QC department, a technical team dedicated to maximize

23 local contractor capabilities ensure adherence to SAR quality standards 3.7 3.4
through training programs
24 Develop the East-West rail connection Jeddah-Jubail via Sudair (Landbriddge)1 N/A N/A
Develop the West coast rail corridor Yanbu-Jizan via Jeddah (including connection
25 to Medinah) to connect the key industrial areas of Jizan and Yanbu (as well as other
N/A N/A
potentially upcoming areas) to major container ports on the Red Sea (JIP and KAP)1
1 Initiative identified after testing rail network through KSA transport model
Initiative Charter- Establish task force responsible to reassess existing railway masterplan to define critical future railway
developments, taking into account financial viability and socio-economic impact (1/2)
PRELIMINARY

▪ The rail sector in the Kingdom recently completed a preliminary railway masterplan study outlining the Initiative ▪ CEO SAR
potential future development of the rail network This initiative will focus on reassessing the masterplan, sponsor
and aligning it with ongoing railway sector reform and the national transport strategy, to ensure effective
allocation of resources and the financial and socio-economic viability of the future projects Initiative ▪ Director, Corporate
Owner Performance Control
Relevant Strategic
Efficiently and effectively holders ▪ Public Transport Authority
connect the centers of ▪ PIF
economic activities of the Challenges addressed by this initiative ▪ SRO
Kingdom by developing ▪ Limited coverage of current network to serve the potential demand
▪ SEAPA
strategic rail infrastructure ▪ Building non profitable and non-sustainable links due to limited visibility and political bias
▪ Maaden, SABIC, Modon
and other industrial players
▪ Lack of available funds and funding sources required to expand current network to connect all current
and future socio-economic centers and meet future demand compared to budget availability

▪ Optimization of future railway network expansion
Target Jul- Target Target from a financial and a socio-economic aspect
Initiative duration: KPI Description Baseline 18 Sep-18 Nov-18 ▪ Optimal allocation of financial resources
6 Months initial phase+ ▪ Identification of priority links to support economic
Continuous process Cumulative # of growth
Number of projects projects ▪ Identification of potential opportunities for private
Initiative start: Jan-19 - 2 8 15
reviewed reviewed per sector participation
Initiative end: Jul-19 masterplan
242
Initiative Charter- Establish task force responsible to reassess existing railway masterplan to define critical future railway
developments, taking into account financial viability and socio-economic impact (2/2)
PRELIMINARY

▪ Create dedicated team for project review and assessment ▪ Complete collection of traffic data and perform projection by Jun 2018
▪ Collect all relevant traffic data and analyze create current baseline of railway usage ▪ Complete project review by November 2018
▪ Project future demand for railway services
▪ Perform comprehensive business case to analyze potential projects, including an
assessment for socio-economic impact, and in accordance to national privatization
framework
▪ Define optimum future developments of railway network
▪ Revisit and reassess masterplan every 4 years, in accordance to each iteration of the
National Transport Masterplan
▪ Limited data availability from external stakeholders ▪ Ensure appropriate governance is in place to facilitate cooperation between entities,
including definition of escalation mechanism
▪ Limited capabilities within organization
▪ Limited budget to implement initiative ▪ Recruit specialist consultants to support business case preparation
▪ Ensure allocation of sufficient budget throughout entire process to reassess future
iterations of the masterplan

▪ 1 Initiative Coordinator
Budget 2019 Total
▪ 2 Planning Analysts, 2 Financial Analysts
Total (SAR Mn) 34.6 34.6 ▪ Specialist consulting firm
243
Initiative Charter- Create railway traffic database for passenger and freight and establish internal business
intelligence unit responsible to collect and analyze the data (1/2) PRELIMINARY

▪ The lack of sufficient traffic data represents a great challenge to the rail sector in the kingdom with Initiative ▪ CEO SAR
regards to planning and strategy development. This initiative will focus on launching a comprehensive sponsor
data collection system, including the definition of the necessary tools and systems to gather and analyze
railway traffic information. The implementation of those tools and systems will be supported by Initiative ▪ Director, Corporate
dedicated unit within the organization responsible to analyze the collected data and use it as an essential Owner Performance Control
planning tool
Relevant Strategic
Objective Key Stake- ▪ MoT
Efficiently and effectively holders ▪ PTA
connect the centers of ▪ MoMRA
economic activities of the Challenges addressed by this initiative ▪ GASTAT
Kingdom by developing ▪ Limited availability of historical data and information to act as a basis for planning and identification of
▪ Maaden, Modon and
strategic rail infrastructure other industrial players
demand generators

▪ Improved fact-based investment decisions
Target Target Target Target regarding railway expansions
KPI Description Baseline 20XX 20XX 20XX 20XX ▪ Increased visibility on current utilization of railway
Initiative duration: services
12 months
Initiative start: Sep-17 - - - ... - ... ...
Initiative end: Aug-18
244
Initiative Charter- Create railway traffic database for passenger and freight and establish internal business
intelligence unit responsible to collect and analyze the data (2/2) PRELIMINARY

▪ Deploy business intelligence unit ▪ Complete list of data to collect and identify suitable software and IT tools by
▪ Identify list of types of data that needs to be collected October 2017
▪ Identify necessary software and IT tools to support data collection and analysis ▪ Prepare IT and data and collection platform by May 2018
▪ Design and prepare IT and data collection platform
▪ Complete test of IT platform and preliminary database by Aug 2018
▪ Launch data collection
▪ Implement continuous improvement and planning optimization process through data
analysis
▪ Limited available budget to create and maintain database ▪ Ensure allocation of dedicated budget to business intelligence unit to support
maintenance of database
▪ Challenging implementation of IT platform for data collection ▪ Identify with IT department potential challenges for implementation prior to selecting
optimal tool
▪ Duplication of data collection between PTA, MoT and SAR ▪ Align on the specific roles and responsibilities of each entity in the data collection and
ownership processes

▪ 1 IT Project Manager, 1 IT Analysts
Budget 2018 Total
▪ 1 Planning Manager , 2 Planning Analysts, 1 Strategy Analyst
Total (SAR Mn) 11.6 11.6 ▪ Specialized IT Consulting Team
245
Initiative Charter- Review and upgrade, SAR internal safety and security manual, including safety management
systems, in accordance with general safety regulations mandated by various policy makers (1/2) PRELIMINARY

▪ Rail safety is a topic of critical importance for the transport sector in the Kingdom. The development of Initiative ▪ CEO of SAR
a safety and security manual will set out the directions, guidelines and procedures to operate a safe and sponsor
secure railway network. The development of the manual, will need the cooperation and coordination
among several entities, such as the Civil Defense, Ministry of Health, Public Transport Authority, Ministry Initiative ▪ Head of HSE Department
of Transport, Ministry of Interior etc. The manual will also include the design of a best in class emergency Owner
response system to be able to deal with any emergency and crisis
Relevant Strategic
Strive to operate the holders ▪ Public Transport Authority
safest railway network in ▪ Civil Defense
MENA Challenges addressed by this initiative ▪ Ministry of Health &
regional health authorities
▪ Suboptimal procedures and monitoring of safety regulations for the railway sector in the Kingdom
▪ Limited compliance and adherence to international rail safety standards
▪ High Commission of
Industrial Security
▪ Coordination with MoI to ensure the protection of SAR assets
▪ Ministry of Interior

▪ Improvement of safety and security standards
Target Target across railway network
KPI Description Baseline Jun-18 Dec-18 ▪ Contribution to achievement of safety related KPIs
Initiative duration: in the strategy such as, GSI, LTI, fatality weighted
12 Months Representative of tasks index and accident rate
% of Project ▪ Creation of a collaborative safety culture within the
Initiative start: Jan-18 completed and milestones - 50% 100%
Completion organization and overall Saudi safety ecosystem
achieve
246
Initiative Charter- Review and upgrade, SAR internal safety and security manual, including safety manage-
ment systems, in accordance with general safety regulations mandated by various policy makers (2/2) PRELIMINARY

▪ Create initiative task-force involving all relevant stakeholders and policy makers ▪ Create SAR dedicated team by October 2017
▪ Identify existing challenges facing current safety and security processes ▪ Launch initiative task-force by December 2017
▪ Develop upgraded safety and security manual to address identified challenges, through
▪ Develop first draft of manual by June 2018
dedicated team within SAR
▪ Create implementation plan, in coordination with relevant entities, to implement new ▪ Publish final manual by August 2018
safety and security standards
▪ Launch continuous monitoring program to ensure effective implementation
▪ Coordination and cooperation across different stakeholders ▪ Define escalation mechanism including involvement of PTA, the main rail regulatory
authority
▪ Establish coordination team responsible for early engagement of relevant
stakeholders
▪ Limited capabilities within organization ▪ Recruit specialist consulting firm to support development of manual

▪ 1 HSE team leader
Budget 2018 Total
▪ 3 HSE officers
Total (SAR Mn) 13.4 13.4 ▪ Railway HSE Consulting Firm
247
Ports Sector - prioritization summary

Minimum Average Maximum ▪ Safety and environmental impact of the ports
Impact environment is one of the top priorities for
3.3 4.1 4.7 SEAPA, which will be addressed through
(Out of 5)
multiple initiatives
Feasibility ▪ The optimization of all aspects of the
2.9 3.9 4.6
(Out of 5) concession framework, such as tariffs, ports
specialization, environmental protection,
Highest priority initiatives energy efficiency, and TCO, is critical to ensure
the success of the ports strategy and
1 Finalize development of Saudi ports community digital platform masterplan
▪ The clear definition of the new role and
2 Design and launch the new SEAPA organization to act as an responsibility of the SEAPA organization, as
independent, empowered regulator of the maritime sector and deliver on well as of the port companies, is fundamental
the new mandate and requirements to ensure a healthy development of the
sector
3 Review and upgrade the tariff regime to support achievement of
the masterplan
SOURCE : SEAPA Prioritization Survey 248

Ports Sector - Prioritized Initiatives (1/5)
1 Finalize development of Saudi ports community digital platform 4.7 4.6
Design and launch the new SEAPA organization to act as an independent, empowered
2 4.6 4.5
regulator of the maritime sector and deliver on the new mandate and requirements
3 4.5 4.5
Review and upgrade the tariff regime to support achievement of the masterplan
Establish coordination committee between SEAPA and relevant stakeholders,

4 4.5 4.5
internal and external, to align on ports strategy development and implementation
Design the right financial flows between SEAPA (as a regulator) and service
5 providers in the sector (i.e. PortCos, OpCos) to minimize SEAPA's reliance 4.5 4.4
on government funding
Optimize the concession regime to support expansion and specialization plans for
6 4.5 4.2
each port
Empower SEAPA (and eventually PortCos) to directly negotiate concession

7 agreements with different service providers to maximize value for the maritime sector 4.4 4.2
as opposed to reduce initial costs

Develop a performance culture with clear performance pressure, defined roles

8 and responsibilities, KPIs, and career progression options to promote 4.4 4.2
ownership and accountability
Create a business development unit in SEAPA that identifies, incubates

9 and spins off financially lucrative ventures, that could financially support 4.5 4.0
the regulator and sector
Design, build and launch a maritime safety unit within SEAPA to manage
10 4.4 4.1
and upgrade safety across the sector
Improve current capabilities, tools and systems of the contracts department

11 4.3 4.2
within SEAPA to adopt a value based approach to procurement and contracting
Optimize the concession regime to ensure delivery of port superstructure

12 4.3 4.2
at optimal TCO, while accommodating the capacity and energy efficiency prerogatives
Optimize the concession regime to support environmental protection and energy

13 4.3 4.0
efficiency across the sector
Design, build and launch an environmental protection and energy efficiency unit
14 4.1 4.2
within SEAPA to reduce the energy footprint of the sector on the Kingdom

Establish customer service department within SEAPA with clear KPIs measuring
15 4.2 4.0
customer satisfaction rate, quality of resolutions and average resolution time
Work with KAP to specialize it in containers, focusing on transhipment services,

16 4.0 4.0
and expand its capacity to TEU eq. 10m by 2030, through capital investments
Upgrade (or support the upgrade of) port infrastructure and superstructure into
17 4.6 3.6
green and energy efficient ones
Setup the right PortCo (with the right asset allocation) to ensure the creation of financially
18 self-sustainable cluster of ports that could support the largest majority of their 4.4 3.8
CAPEX and OPEX needs
Build a logistic platform, including dry port, in Al-Khumra that feeds off JIP and acts
19 4.4 3.6
as a regional distribution centre
Build a logistic platform in Dammam that feeds off DMM and acts as a
20 4.2 3.5
regional distribution centre
Develop the right incubating environment and necessary changes in regulations to

promote digitization of the entire maritime value chain and creation of a single digital
21 3.7 4.2
platform for ports operations, including electronic transactions for ports services
(i.e. iWallet)

Develop a standardized set of environmental protection and energy efficiency guidelines

22 3.7 4.2
based on the latest IMO standards and adapted to the requirements of the Kingdom
Design and launch a comprehensive monitoring, and enforcement

23 3.7 4.0
system to support the reduction of energy footprint across the maritime sector
Create centre of excellence to research new trends and recommend

24 3.9 3.5
adoption of latest technologies in the maritime transport and infrastructure
Collect and analyse data related to customer complaints and use as a

25 3.8 3.6
basis for continuous improvement
Develop the right incubating environment and necessary changes in

26 3.8 3.5
regulations to promote automated berth management and allocation
Specialize JIP in containers and expand its capacity to TEU eq.

27 3.7 3.5
10m by 2030, through operational improvements
Review and update, in coordination with PTA, existing maritime safety standards, in
28 accordance to latest IMO standards, and monitor compliance across all 3.7 3.5
ports in the Kingdom

Specialize DMM in containers and cargo, expand its capacity to TEU eq. 5m
29 3.6 3.6
by 2030, through operational improvements
Specialize remaining ports, both commercial and industrial, in dry bulk, liquid bulk and/or
30 3.7 3.4
cargo based on a case by case analysis of host region respective needs
Launch awareness and involvement campaigns to educate

31 3.7 3.4
maritime stakeholders about safety
Work with KAEC, to develop a logistics platform in KAEC

32 3.6 3.3
that feeds off KAP and acts as an export/re-export centre to East Africa
Work with Royal Commission of Jubail and Yanbu to develop a logistic platform in Jubail,
33 3.5 3.3
that acts as a petchem and heavy industries distribution hub for the East coast
Work with Royal Commission of Jubail and Yanbu to develop a logistics platform in
34 3.4 3.3
Yanbu, that acts as a petchem and heavy industries distribution hub for the West coast
Balance liquid/dry bulk requirements across remaining ports by

35 3.3 3.1
shuffling capacities to meet 2030 demand
Work with Royal Commission in Jizan to develop logistics platform,

36 3.3 2.9
focused on supporting Chinese "One Belt One Road" project

Initiative Charter- Finalize development of Saudi ports community
digital platform (1/2) PRELIMINARY

▪ The Saudi Ports system is currently creating a digital platform whereby the different Initiative ▪ President of SEAPA
processes involved (payments, claims, requests) are digitized. This initiative will focus on sponsor
the completion of the digital platform and launch of the digitization of ports transactions
Initiative ▪ Khaled Al Ghayth
Owner
Relevant Strategic
Objective Key ▪ SEAPA IT Department
Stake- ▪ Ports General
Promote innovative holders Managers
solutions to facilitate Challenges addressed by this initiative
▪ Saudi Customs
operational efficiency ▪ Lack of specific customer oriented programs (e.g. customer satisfaction)
at each port ▪ Lack of data and information to monitor customer behavior
▪ Lack of data sources availability to stay up to date in technology

▪ Streamlined processes and transactions
Target Target between SEAPA and all its customers
KPI Description Baseline 2018 2019 ▪ Improved customer experience rating
Initiative duration:
9 months ▪ Improved operational efficiency
% of transactions
Initiative start: Sep-17 - - 50% 100%
done digitally
Initiative end: May-18
254
Initiative Charter- Finalize development of Saudi ports community
digital platform (2/2) PRELIMINARY

▪ Finalize business model for port community system ▪ Complete businesses model by Oct 2017
▪ Align with various stakeholders on services provided ▪ Collect data from Pilot program by Dec 2017
▪ Continue with pilot program and collect issues and lessons learned and use ▪ Roll out digital systems to all ports by May 2018 and monitor
as continuous feedback
implementation
▪ Roll out systems to all ports and terminals, with the final aim to completely
digitize all transactions, while monitoring implementation
▪ Capabilities at specific ports to follow new processes ▪ Provide on the ground monitoring and training during initial
implementation phase
Budget 2018 Total

▪ Initiative already ongoing
▪ IT Consultant (Tabadul)
Total (SAR Mn) 6.9 6.9
255
Initiative charter-Design and launch the new SEAPA organization1 to act as an independent, empowered regulator
of the maritime sector and deliver on the new mandate and requirements (1/2)
PRELIMINARY

▪ The maritime sector in the Kingdom is currently undergoing major restructuring, whereby SEAPA will Initiative ▪ President of SEAPA
need to act as an independent regulator of the ports sector. This initiative will focus on identifying the sponsor
mandate of SEAPA vis a vis the other relevant entities, design the necessary organizational structure, and
launch the new organization Initiative ▪ Khaled Alghayth
Owner
Relevant Strategic
Objective Key Stake- ▪ SEAPA Board
Create and manage a Challenges addressed by this initiative
holders ▪ Head of Adminstration
safe, effective, and ▪ Head of Legal Affairs
efficient organization that ▪ Lack of clarity on SEAPA governance and interaction with the broader transport community ▪ General Manager of
fosters an inclusive, open, ▪ Lack of external stakeholder plan Jubail Industrial Port
and team oriented culture ▪ Lack of internal stakeholder plan ▪ Director General of
and provides the ▪ Lack of clarity on governance of the transport sector Presidents Office
opportunity for the Head ▪ Unclear mandate and authority for the different regulatory entities ▪ Ministry of Civil Service
Office and individual port ▪ Lack of clear governance structure, mandate and authority for the holding company
organizations to
contribute to port
competitiveness ▪ More efficient sector governance
Target Target Target ▪ Definition of relationship between regulatory entity
KPI Description Baseline 2017 2018 2019 and port companies
Initiative duration: ▪ Enhanced regulatory duties due to improved
27 months Representative of tasks allocation of resources
% Project
Initiative start: Sep-17 completed and 10% 50% 100%
Completion
milestones achieved
1 Including transition period to move from existing to future status

256
Initiative charter-Design and launch the new SEAPA organization1 to act as an independent, empowered regulator of the
maritime sector and deliver on the new mandate and requirements (2/2)
PRELIMINARY

▪ Receive royal decree to establish SEAPA as an independent regulatory authority ▪ Define roles and responsibilities of regulatory entity and port companies by
▪ Define roles and responsibilities of SEAPA as a regulator October 2017
▪ Define collaboration areas with other external stakeholders ▪ Define operating model by November 2017
▪ Design ownership structure of the ports (within port companies) and financial flows
▪ Launch transition plan, including spin off of port companies, by January 2018
within the sector
▪ Define new operating model, including organization structure, HR processes and internal ▪ Complete transition by December 2019
governance, for the regulator
▪ Design and implement transition plan across strategy, financial structure and operating
model
▪ Spin-off port companies as state owned entities
▪ Delay in issuing of Royal Decree ▪ Perform lobbying activities at ministry level to ensure timely issuing of decree
▪ Delay in approval of new ownership structure and financial flow ▪ Establish coordination committee with all stakeholders to align on decisions throughout
entire process

▪ 1 Project Manager, 4 Analysts (Legal, Strategy, Operations, HR)
▪ Consulting support
Total (SAR Mn) 87.3 60.0 147.3 ▪ Specialized Legal support
1 Including transition period to move from existing to future status

257
Initiative Charter- Review and upgrade the tariff regime to support achievement of the
masterplan (1/2) PRELIMINARY

▪ The pricing of the tariffs for port services are critical in ensuring the sustained growth of the Kingdom's Initiative ▪ Nabeel Al Amudi
ports and achieving the necessary volumes outlined in the ports strategy and masterplan. This initiative sponsor
will focus on reviewing and upgrading the tariff regime for all the ports in the Kingdom to ensure service
competitiveness and efficient operations Initiative ▪ Musaid Bin Shunnar
Owner
Relevant Strategic
Objective Key Stake- ▪ Khaled Al Ghayth
Provide efficient and holders ▪ Mouataz Al Safi
effective ports network ▪ Musaed AL Idrees
that is integrated with Challenges addressed by this initiative ▪ Hassan Fakiha
other transport modes, to ▪ Lack of flexibility in pricing concessions for ports' operations
▪ SEAPA Legal Dept.
connect the national ▪ Limited use of alternative revenue generation opportunities
economy to the global ▪ Rigid regulations preventing SEAPA to adopt innovative solutions for revenue generations or modify
market existing contracts

▪ Improved competitiveness of the ports ecosystem
▪ Generate resources to finance masterplan
Initiative duration: KPI Description Baseline Target 20XX Target 20XX initiatives
6 months design+ 6
months supervision Representative of tasks
% Project
Initiative start: Sep-17 completed and - ... -
Completed
milestones achieved
Initiative end: Aug-18
258
Initiative Charter- Review and upgrade the tariff regime to support achievement of the
masterplan (1/2) PRELIMINARY

▪ Assess existing tariff structure, and benchmark against competitive regional and ▪ Complete benchmarking by October 2017
international ports ▪ Complete sensitivity analysis by November 2017
▪ Perform high-level sensitivity analyses to identify optimum pricing levels
▪ Revise tariff structure by January 2018
▪ Revise tariff structure to move from a price setting mechanism, to setting floors and
ceilings for each port ▪ Syndicate and launch new tariff structure by February 2018
▪ Approve and align new tariff ceilings and floors with ports concession framework ▪ Launch supervision efforts by February 2018
▪ Supervise the implementation of new tariff structure at all KSA ports
▪ Lack of data availability to assist in global benchmarking ▪ Recruit specialist consultants to aid with benchmarking and sensitivity analysis
▪ Delay in approval of new tariff structure ▪ Establish coordination mechanism and schedule to ensure alignment amongst key
stakeholders
▪ Reluctance of port operators and other key stakeholders to accept new tariff ▪ Engage with port operators throughout the process to inform and collect feedback
structure regarding new tariffs

▪ 1 Initiative Leader, 3 Commercial and Operations Analysts
Budget 2018 Total
▪ Consulting Support
Total (SAR Mn) 2.7 2.7 ▪ Specialized Legal Support
259
Air Transport- prioritization summary

Minimum Average Maximum ▪ Aviation safety is the top priority for GACA,
Impact with specific focus on certifying KSA airports,
3.7 4.0 4.5 enhancing safety culture, and improving
(Out of 5)
reporting and monitoring and mechanisms
Feasibility ▪ Re-affirming the role of GACA as a regulatory
3.4 3.9 4.5
(Out of 5) body is a critical element for the successful
performance of the aviation sector
Highest priority initiatives
▪ Recruitment and training of new talents is key
1 Launch airport certification program focusing on development of safety to maintain the health and performance of
and operational manuals to ensure certification of all airports in the the sector
Kingdom by 2020
▪ Expansion of the aviation industry through
2 Support and promote localization of certain sectors of the aviation the localization of various services within the
industry value chain, including OEM Manufacturing value will be of critical importance to promote
economic growth in the Kingdom
3 GACA to complete development of the Civil Aviation Act to define and
detail the extent of its future mandate, authority and responsibility as a
regulator of the aviation industry, in preparation of submission to and
approval from council of ministers
SOURCE : GACA Prioritization Survey 260

Air Transport- Prioritized Initiatives (1/8)
1 Launch airport certification program focusing on development of safety

and operational manuals to ensure certification of all airports in the Kingdom by 2020 4.4 4.3
2 Support and promote localization of certain sectors of the aviation industry value chain,
N/A1 N/A1
including OEM Manufacturing
GACA to complete development of the Civil Aviation Act to define and detail the extent
3 Of its future mandate, authority and responsibility as a regulator of the aviation industry, 4.4 4.1
In preparation of submission to and approval from council of ministers
Review and upgrade current safety protocol, with specific focus on consequence
4 management and penalty enforcement for failing to report by expediting the 4.4 4.1
implementation of the SSP program
5 Review and clarify the role and responsibility of holding company vis-a-vis GACA
as a regulator in monitoring and enforcing PPP terms 4.2 4.1
GACA/SAVC to develop the appropriate management

6 model to maximize benefits of sector corporatization 4.3 4.0
and privatization (i.e. optimal airport clustering, financial flows)
GACA to design and deploy regulatory framework focused on minimizing energy
7
consumption and environmental impact of service providers (e.g. airport, 4.2 4.0
ground handling, airlines) in accordance with international guidelines and national targets
GACA to establish dedicated environmental unit to monitor/enforce
8
current regulations and propose adoption of new technologies regarding 4.2 4.0
energy efficiency and environmental protection
1 Initiative not prioritized using survey, but chosen as one of top priorities by GACA president
Air Transport- Prioritized Initiatives (2/8)
GACA to upgrade its training program (across most important ICAO critical areas)
9 4.1 4.0
and ensure sufficient financial resources to roll-out across all technical staff
GACA to accelerate recruiting and on boarding of technical staff to maintain

10 4.0 4.0
a sufficient number of technical resources and avoid generational gap
Accelerate localization of supporting services within the airline industry, by initially

11 4.5 3.9
focusing on training centres and MRO
Expand Jeddah cargo city to 2.5m tons p.a by 2030 and transform
12 4.3 3.9
it into a logistics hub to serve the East African market
Reconfigure the network of international airports to accommodate extra Hajj and Umra
13 travelers volumes including setting-up all the necessary domestic air 4.3 3.8
links and facilitating setup of land links
Expand Dammam cargo city to 2m tons p.a by 2030 ton and transform
14 4.2 3.8
it into the regional cargo city for the Eastern Province
GACA to design, launch and enforce mandatory data collection and reporting systems,
15 focused on energy consumption and environmental impact, 4.2 3.6
to be implemented by airport operators and airlines

Air Transport - Prioritized Initiatives (3/8)
GACA to launch and implement airport carbon accreditation program for all regional
16 4.1 3.4
and international airports, aimed at minimizing overall carbon footprint of airports
Set-up the Hajj transport committee to promote improved collaboration (planning,

17 3.8 4.5
operations) among key stakeholders
18 Develop list of potential projects suitable for private sector participation 3.9 4.3
In coordination with MoF/NCP, review and upgrade existing PPP and concession
19 3.9 4.2
regulatory framework to accelerate private sector investment in the aviation sector
Review and develop a tariff book that ensures affordability of "economy" air services
20 3.9 4.2
in light of new macro-economic trends, e.g. energy prices liberalization
GACA/SAVC to review and upgrade airport master planning guidelines to include

21 3.9 4.2
analysis of potential revenues from non-aviation sources
Create a prioritized list of customer service interventions at airports and airlines,

22 3.9 4.0
in order to propose potential policy interventions to improve customer experience


Establish a dedicated innovation unit within GACA to analyse future trends
and recommend adoption of latest technologies and best practices in the aviation sector
23 3.8 4.0
to improve performance and customer experience, such as real-time tracking of bags,
biometric self-service systems, and big data analytics to optimize slot allocation
Review existing concession operating agreement framework to ensure the delivery
24 of satisfactory level of service to customers, along with adequate enforcing 3.8 4.0
and monitoring mechanism
Analyze and define list of opportunities for future development of intermodal

25 3.9 3.9
logistics zones, including cargo villages, at relevant airports
Expand PMIA (MED) to 12m pax p.a. by 2030 through capital expansions
26 3.9 3.8
and operational improvements
Work with airlines to effectively and efficiently activate most attractive international
27 3.9 3.8
links through creating new/expanding existing bilateral agreements
Expand KAIA (JED) to 80m pax p.a. by 2030 through capital expansions
28 3.9 3.8
GACA/SAVC to set minimum maintenance standards for service operators

29 3.9 3.7
(in particular airport operators) that guarantee optimal lifecycle for aviation assets

Review and adjust capacity of regional airports to meet 2030 demand through
30 3.8 3.7
operational improvements first
GACA/SAVC to establish PMO and build internal project management

31 3.8 3.7
capabilities to supervise future projects and TCO requirements
GACA/SAVC to design and deploy a stage gate process, including comprehensive

32 3.9 3.6
business case framework, to enable fact-based investment decisions
Work with MoD to lift/reduce no-fly zone restrictions affecting the

33 3.9 3.6
top-10 most important air corridors over the Kingdom
Expand KKIA (RUH) to 47m pax p.a. by 2030 through capital

34 3.7 3.7
expansions and operational improvements
Review and adjust capacity of domestic airports to meet 2030

35 3.7 3.6
demand through operational improvements first
Expand KFIA (DMM) to 21m pax p.a. by 2030 through capital

36 3.7 3.6

Expand Riyadh cargo city to 1m ton p.a by 2030 and transform it into the
36 3.7 3.6
parcel's hub for the GCC
Review and update mandates of GACA customer service department, including definition
37 of appropriate KPIs and KPTs, to further empower their control over customer experience 3.7 3.5
at airports
Support the launch and activation of the international hub system for Jeddah, Riyadh,
38 N/A N/A
and Dammam airports
Expand Qurayat airport to 0.25m pax by 2030 through capital expansions

39 N/A N/A
and operational improvements1
Expand Al-Ahsa airport to 1m pax by 2030 through capital expansions

40 N/A N/A
Expand Rafha airport to 0.25m pax by 2030 through capital expansions

41 N/A N/A
Expand Arar airport to 0.5m pax by 2030 through capital expansions

42 N/A N/A
1 Initiative confirmed after testing roads network through KSA transport model
Expand Abha airport to 6m Pax by 2030 through capital expansions

43 N/A N/A
Expand Jizan airport to 6m Pax by 2030 through capital expansions

44 N/A N/A
Expand Hail airport to 3m Pax by 2030 through capital expansions

45 N/A N/A
Expand Qaisumah airport to 0.5m pax by 2030 through capital expansions

46 N/A N/A
Expand Qassim airport to 3m pax by 2030 through capital expansions

47 N/A N/A
Expand Tabuk airport to 3m pax by 2030 through capital expansions

48 N/A N/A
Expand Yanbu airport to 3m pax by 2030 through capital expansions

49 N/A N/A
Expand Al-Jouf airport to 1m pax by 2030 through capital expansions

50 N/A N/A
Expand Baha airport to 1m pax by 2030 through capital expansions

51 N/A N/A
Expand Sharorah airport to 0.5m pax by 2030 through capital expansions

52 N/A N/A
53 Develop Farasan airport to 0.5m pax by 2030 through capital investments1 N/A N/A
54 Develop Najran airport to 0.5M pax by 2030 through capital investments1 N/A N/A
Expand Taif airport to 5.5mn by 2030 through capital expansions

55 N/A N/A
Initiative Charter- Launch airport certification program focusing on development of safety and operational
manuals to ensure certification of all airports in the Kingdom by 2020 (1/2) PRELIMINARY

▪ In GACA’s position as the regulator of the aviation sector in the Kingdom, it should regulate and achieve Initiative ▪ GACA President
consistently best in class standards for safety and operations across all airports in the Kingdom. A sponsor
challenge currently exists in the fact that a majority of the domestic and regional airports are not certified
by GACA, which results in inconsistent application of safety operations and standards across the board. Initiative ▪ Director of Operation
This initiative will aim to create a specific safety and operations manuals for each of the Kingdom's Owner and Safety
airports, along with the necessary monitoring and reporting systems
Relevant Strategic
Objective Key Stake- ▪ Directors of KAIA, KFIA,
Achieve the highest level holders KKIA, PMIA, Northern,
of aviation safety, Central, Western,
including full compliance Challenges addressed by this initiative Southern Airports
with international safety ▪ Limited capabilities at regional and domestic airports to consolidate key procedures into standardized
standards airport specific operations and safety manuals-
▪ Large workload for GACA (vs. workforce size), reducing the speed at which smaller airports get certified

▪ Consistent application of safety and operations
Target Target Target standards across all airports
KPI Description Baseline 2018 2019 2020 ▪ Further improved ICAO audit scores across all
Initiative duration: airports, to achieve >90% across all categories
39 Months Cumulative and critical elements
Airports Certified number of 6 13 20 27 ▪ Improved safety culture and overall safety
Initiative start: Sep-17
certified airports ▪ Improved operational excellence
269
Initiative Charter- Launch airport certification program focusing on development of safety and operational
manuals to ensure certification of all airports in the Kingdom by 2020 (2/2) PRELIMINARY
▪ Create central project management task-force for independent assessment of airports and ▪ Launch project management team by October 2017
design overall program structure, including manual guidelines ▪ Establish airport certification teams by December 2017
▪ Establish airport certification teams, segmented by geographical location ▪ On board consultant and complete program structure and manual guidelines by
▪ Recruit specialist safety consulting company to aid with drafting of safety and operational manual December 2017
▪ Evaluate key challenges in terms of safety and operations at each airport ▪ Complete airport certification program for 7 airports by December 2018
▪ Launch intervention program to ensure alignment of safety and operations processes with ▪ Complete airport certification program for 14 airports by December 2019
defined standards ▪ Complete airport certification program for 21 airports by December 2020
▪ Launch continuous monitoring system to ensure consistent application of safety and operations
standards
▪ Limited capabilities of airport employees to complete task within time ▪ Ensure airport certification teams from GACA are equipped with sufficient capabilities,
knowledge, and resources to support project implementation
▪ Limited skilled resources at airports, in particular domestic airports, to implement necessary ▪ Establish cooperation mechanism between GACA, SAVC and airport management to ensure
operational changes to achieve certification sufficient support to each airport
▪ Limited budget to implement initiative ▪ Provide dedicated budget for entire program
▪ 1 Initiative Manager
Budget 2018 2019 2020 Total
▪ 2 x Airport Certification Teams: 1 Team Manager, 2 Operation Analysts, 2 Safety Analysts
▪ Specialist Aviation Consultant
Total (M SAR) 14.0 5.2 5.2 24.4
270
Initiative Charter- Support and promote localization of certain sectors of the aviation industry value chain,
including OEM manufacturing (1/2) PRELIMINARY

▪ One of the key pillars of the Kingdom’s vision is to increase the localization of many of its industries. Initiative ▪ President of GACA
There is great potential in localizing certain sectors in the aviation industry, for example, O&M facilities, sponsor
air logistics services and aerospace manufacturing. The purpose of this initiative will focus on GACA’s role
in supporting and promoting the presence of those facilities and industries in the Kingdom Initiative ▪ …
Owner
Relevant Strategic
Support KSA carriers, holders ▪ Ministry of Energy
including new entries, to ▪ Ministry of Labor
promote sector Challenges addressed by this initiative ▪ Saudia
employment and ▪ Limited availability of skilled technicians that do not allow for effective localization of core airline jobs
▪ Flynas
passenger choice of ▪ Lack of adequate training to prepare talents for aviation industry
▪ Aircraft manufacturers
services and airfares ▪ Local culture limitations on developing broader local workforce

▪ Increased local employment and talent
Target Target Target Target ▪ More favourable cost structure for local players
KPI Description Baseline 2019 2020 2021 2022
Initiative duration: KSA Aviation Market Market size in M SAR,
- ... - ... ...
48 months Size excluding airlines
Initiative start: Jan-18 Aviation Sector No. of Employees in

Employment Aviation sector
271
Initiative Charter- Support and promote localization of certain sectors of the aviation industry value chain
including OEM manufacturing (2/2) PRELIMINARY

▪ Create coordination task force to manage the implement the project ▪ Create coordination task force by January 2018
▪ Identify, along with other stakeholders, potential sectors within aviation ▪ Identify potential sectors to localize and GACA contribution by March
value chain with greatest localization potential 2018
▪ Identify potential areas for GACA contribution
▪ Launch pilot program by December 2018 (i.e, close first deal with
▪ Design and launch pilot program
OEM)
▪ Scale up localization initiative
▪ Reluctance of OEM to localize in Saudi Arabia due to limited capabilities ▪ Work with airlines and aircraft manufactures to develop
of local workforce adequate training programs and skilled workforce
▪ Work with Ministry of Energy and Labor to develop
suitable ecosystem to encourage localization
Budget 2018 2019 2020 2021 Total ▪ 1 Localization Manager, 2 Technical Aviation Analysts, 2 Commercial
Analysts
Total (M
SAR)
52.9 8,8 8,8 8,8 79.4 ▪ Strategy Consulting Team (12 Months)
272
Initiative charter- Review and upgrade current safety protocol, with specific focus on consequence
management and penalty enforcement for failing to report by expediting the implementation of the SSP
program (1/2) PRELIMINARY

▪ Aviation safety is of critical importance to GACA and the overall transport sector. One of the key Initiative ▪ President of GACA
elements of aviation safety is the presence of a healthy employee safety culture, including sponsor
performance and consequence management. This initiative will aim to enhance the overall safety
culture, in accordance to the State Safety Program, by emphasizing the contribution of all Initiative ▪ Director of Operations
employees towards safety, through training, monitoring, reporting and recognition Owner and Safety
Relevant Strategic
Achieve the highest holders ▪ SAVC CEO
level of aviation safety, ▪ Directors of Airports
Challenges addressed by this initiative ▪ Airport HSE
including full
compliance with ▪ Limited availability of resources results in varying sample size for inspecting various parts of the Department
international safety system and could lead to sample sizes that drive lower confidence levels across certain ICAO ▪ Airports HR
standards elements Departments

▪ Improved safety culture across organization
▪ Improved safety performance, including
KPI Description Baseline Target 2017 Target 2018 incidents and accidents
Initiative duration:
6 Months
Initiative start: Sep-17 - - - ... -
273
Initiative charter- Review and upgrade current safety protocol, with specific focus on consequence
management and penalty enforcement for failing to report by expediting the implementation of the SSP
program (2/2) PRELIMINARY

▪ Create initiative team for implementation ▪ Create list of challenges to be addressed by November 2017
▪ Identify specific existing challenges facing monitoring and reporting of safety violations ▪ Launch safety awareness campaign by January 2018
processes ▪ Launch safety performance management system by March 2018
▪ Design and launch safety performance management system, including appropriate KPIs
for safety department, and monitoring and reporting protocols
▪ Design and launch safety awareness campaign, outlining importance of every
employee contribution to overall safety mission to GACA
▪ Time required to shift from a consequence based safety mindset to a proactive and ▪ Focus on mindset shift through continued engagement with employees on all
collaborative safety culture matters of safety
▪ Limited buy-in from employees towards new safety protocol ▪ Focus on training of management personnel and “leading by example” culture

▪ 1 Initiative Leader, 2 Safety Analysts, 2 HR Analysts
Budget 2018 Total
▪ HR and Org Consulting Support Team
Total (M SAR) 7.4 7.4
274
Contents

▪ NTS 2030
275
A capital deployment plan was developed for each entity of the transport sector,
detailed until 2030
Approach
▪ Time required to design and implement each
initiative was assessed based on investment required
Mission & (capital intensive or capital light) and complexity
vision
▪ For each initiative, internal resources and potential
external support was taken into consideration
▪ For capital intensive initiatives (e.g large-scale

Objectives construction projects), existing budget, expert
assessment and regional benchmarks with similar
projects were used
▪ For non-capital intensive initiatives, average cost for

Strategic initiatives internal resources and benchmark on external
support were used for the assessment
▪ High-level budget and associated capital

deployment plan were then developed
▪ The budget assessment is to be considered only for
NTS 2030 initiatives and does not include funds for
day-to-day operations and maintenance

The Kingdom will need to invest SAR ~11512 Bn by 2030 across all transport modes to
realize the objectives of the National Transport Strategy
Overall budget required (2018-2030) NTS 2030 budget
SAR Billion
▪ 115.0than 80% of
More
the growth is
21.4 driven by
containers,
9.6
especially on the
West coast
64.0 ▪ Capacity in growth

in containers due
to:
19.5 – Operational
0.4 excellence of
current ports
– Planned
Roads Public transport Rail Ports Air expansion
Total
1 Budget is to be allocated for NTS 2030 initiatives and does not include "business as usual" operations and associated necessary funds, as well as standard operations & maintenance costs for the new assets
2 Does not include approx. SAR 44.5Bn already allocated by GACA for the expansion of Jeddah, Riyadh, Abha, Jizan airports 277
…with more than 50% to be incurred in the upcoming five years
Yearly budget for NTS 2030 (2018-2030)

SAR Billion
▪ More114.9
than 80% of
the growth is
driven by
containers,
50.1 especially on the
West coast
▪ Capacity in growth
12.5 in containers due
to:
12.7 – Operational
excellence of
56% 12.9 current ports
11.6 – Planned
15.0 expansion
2018 19 20 21 22 2023-30 Total

Source: Team Analysis 278
MoT Roads Deputyship will require ~19Bn in Capital Intensive project until 2030,
mostly focused on completion of new ring roads
Roads sector yearly budget for NTS 2030 capital intensive initiatives (2018-2030)
SAR Billion Key Takeaways
18.8 ▪ Road construction

projects are focused on
the completion of ring
5.7 roads to reduce
congestion in urban
areas
1.2 ▪ A large investment will
also be required in
2.6 improving the safety
standards of the road
infrastructure, to meet
3.8 necessary IRAP
requirements
3.5
2.1
2018 19 20 21 22 2023-30 Total

Source: Team analysis 279
Additionally, the Roads deputyship will need more than SAR 700M to
implement non-capital intensive initiatives
Roads sector yearly budget for NTS 2030 non-capital intensive initiatives (2018-2030)
SAR Million Key Takeaways
▪ A large proportion of the

722 budget attributed to the
70 upcoming three years are
associated with
66 implementing the
36 national road safety
initiatives, focused on a
119
communication
campaign as well as
106 launching a road safety
325
center
▪ Remaining initiatives
focus on several aspects,
from employee
performance
improvement, enhancing
investment decisions to
ensuring fiscal
2018 19 20 21 22 2023-30 Total sustainability of the
organization
As a transport regulator, PTA will only require, significant investments in non-capital
intensive initiatives to build up its organization
Public transport sector yearly budget for NTS 2030 non-capital intensive initiatives (2018-2030)
▪ Majority of investments
404 deal with creation of
31 upcoming public
9 transport masterplans, a
34 core function of PTA
73
▪ The development of
safety, environment and
operational standards
and specification will also
106 require significant
151 investment
▪ Only initiatives requiring
capital investments will
be for creation and
deployment of traffic
database and ITS systems
2018 19 20 21 22 2023-30 Total

To implement the long-term vision of the rail sector, more than SAR 63Bn will
be required to build three major railway links
Rail sector yearly budget for NTS 2030 capital intensive initiatives (2018-2030)
▪ Proposed budget
63.6 includes the
development of the rail
links that will provide the
greatest economic
31.4 benefit to the Kingdom:
– Jeddah-Jubail (Land
Bridge)
– Jeddah-Yanbu
6.2 – Jeddah Jizan
6.2 – Medinah junction
5.5 ▪ The construction of those
links will require long
9.4 4.9 term investments,
totaling more than 63
billion
2018 19 20 21 22 2023-30 Total

The rail sector will also need to invest more than SAR 400M in non-capital
initiatives, with 90% needed before end of 2020
Rail sector yearly budget for NTS 2030 non-capital intensive initiatives (2018-2030)
▪ Initiatives for the rail

413 sector will focus on
13 ensuring fiscal
13
48 sustainability by
optimizing the rail sector
revenues and increasing
private sector
154 participation
▪ Furthermore, the review
186 of existing railway
masterplans to evaluate
future decisions on the
expansion of the network
will be critical
2018 19 20 21 22 Total

The ports sector will require targeted capital investments totaling ~9Bn until
2030
Ports sector yearly budget for NTS 2030 capital intensive initiatives (2018-2030)
▪ The ports sector will only

9.2 require targeted capital
investments focused on
expanding the capacities
3.0 of three ports::
– JIP
– KAP
1.9 – Dammam
▪ SEAPA will also support
the development of
1.1
logistics platforms that
0.9 serve as distribution hubs
for the Kingdom
1.2 1.0
2018 19 20 21 22 2023-30 Total

SEAPA will also require more than SAR 450M in non-capital intensive initiatives,
mostly in the upcoming two years
Ports sector yearly budget for NTS 2030 non-capital intensive initiatives (2018-2030)
▪ The design and launch of

461 the new SEAPA
5 17 organization, as an
13
independent regulator of
45
the ports sector, as well
as the creation of
separate port companies
185 will require a large
investment in the
upcoming two years
197
▪ Remaining initiatives will
focus on improving the
capabilities of the
organization to ensure
sustained success in the
future
2018 19 20 21 22 2023-30 Total

GACA has already commenced major expansion projects, but significant capital
investment will be required after 2020
Air sector yearly budget for NTS 2030 capital intensive initiatives (2018-2030)
▪ Jeddah, Riyadh and

21.1 Medina airports already
have significant
expansion projects
underway
10.0 ▪ Further expansion
projects will be necessary
after 2020 to increase the
capacities of the 4
international airports in
3.2 the Kingdom to cope
with additional demand
2.7 and ensure efficient
operations
2.4
1.3 1.5
2018 19 20 21 22 2023-30 Total

GACA will need ~400M by 2022 for non-capital intensive initiatives, with more
than 60% required in the upcoming two years
Air sector yearly budget for NTS 2030 non-capital intensive initiatives (2018-2030)
▪ The major initiatives

386 focus on promoting the
14 localization of air
28 services, as well
improving the fiscal
93 sustainability of the
airport by focusing on
enhancing master-
planning guidelines and
118 build internal project
management capabilities
132 ▪ GACA will also need
investment to upgrade
its overall safety
compliance by recruiting
and training new
inspectors and launching
the airport certification
2018 19 20 21 22 Total program

Contents

▪ NTS 2030
288
Roads sector - Category 1 implementation schedule (1/2)
PRELIMINARY
Initiative 2017 2018 2019 2020 2021 2022
Reinforce the monitoring and enforcement procedures

for road projects (new and under maintenance) across
the Kingdom to ensure adherence to latest safety standards
Expand capacity of Makkah - Jeddah link, along the

Riyadh-Jeddah Corridor, to maintain level of service C by 2030
Review and update existing road design safety standards

in accordance to latest international best practices
Design, build and deploy an MoT Roads PMO supported

by experienced professionals to ensure effective oversight
over projects budgets and timelines
Launch the first greenfield toll road (Mekkah - Jeddah,

3rd highway) under a PPP arrangement by 2019
Upgrade the capacity of the top-5 border crossings with

the UAE, Qatar, Bahrain, Kuwait and Jordan, in addition to Iraq
(on behalf of MoT)
Develop and populate the comprehensive traffic database to

facilitate forecasting, future master planning and capacity
upgrades to the road network
289
PRELIMINARY
Initiative 2017 2018 2019

of the Khamis Mushait/Abha ring road to decongest the urban area
within Khamis Mushait/Abha
Evaluate the feasibility and launch the construction

of an additional ring road for Makkah to decongest the urban area
within Makkah
Design and implement an optimized contracting and procurement

strategy, including best in class RfQ and RfP procedures, that
minimizes TCO, through adoption of innovative methods such as
output based standards, performance based contracts, DBM, etc.
Launch a national road safety centre to coordinate the different

road safety units across different ministries (i.e. MoH, MoI, MoMRA,
SRCA) and drive a coordinated national road safety strategy

of the Tabuk ring road to decongest the urban area within Tabuk

of the Al Hofuf ring road to decongest the urban area within Al Hofuf
Develop stage gate process to optimize investment decisions

on future projects and create an asset management mind-set
within the department
290
Roads sector - Category 2 implementation schedule
PRELIMINARY
Initiative 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Identify and deploy necessary infrastructure interventions required

to maintain all major roads in the Kingdom at a IRAP rating of
3 stars or above (according to latest safety standards) to reduce
accidents and fatalities
Work with MoMRA to review and clarify authority split on

existing roads between the two entities (e.g portions of
King Fahd Road are under MoT and others under MoMRA),
and develop a consistent system for the future classification
Complete the Riyadh ring road to decongest the urban area

within Riyadh
Launch the first set of brownfield toll roads under a

concession arrangement by 2020
Build truck-yards/truck parking at the entrance of Riyadh,

Jeddah, Madinah and Dammam (on behalf of MoT)
Complete the Jeddah ring road to decongest the

urban area within Jeddah
Complete the Madinah ring road to decongest the

urban area within Madinah1
1 De-prioritized after stress-test through of the roads network through KSA transport model
291
Roads sector - Category 3 implementation schedule
PRELIMINARY
Initiative 2017 2018 2019 2020 2021
Design and deploy employee performance management system

and career progression framework, to promote ownership and
accountability, and recognize high-performing individuals
Build and continuously improve the capabilities of the road safety

unit through classroom/on the job training
Create an asset management unit responsible for developing

and implementing private sector agreements, including creation
of a PPP framework and managing revenues from road assets
Review and upgrade road design and material standards, to meet

global best-practice for environmental protection/energy
efficiency to reduce the roads' carbon footprint during construction,
operation and maintenance (eg. Specifying minimum amount of
recycled materials in construction, using warm-mix asphalt
for paving, etc.)
Launch a communication, awareness and public engagement

campaign for road safety across the Kingdom
292
PRELIMINARY
Initiative 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Identify and launch other private sector opportunities to
monetize roads through land asset management, rest area
development and roadside billboards
Work with MoMRA to deploy charging points across all

inter-city petrol stations (on behalf of MoT)
Work with MoMRA to identify locations for charging points

across the top-20 cities and deploy them (on behalf of MoT)
Create centre of excellence to research new trends and

partner with local universities and private sector companies,
to recommend adoption of latest technologies in the transport
infrastructure sector
Develop and deploy a highway traffic control management

system along major corridors in the kingdom, including
development of data control centres, to monitor traffic conditions
and plan necessary interventions
Work in coordination with MoMRA, municipalities and PTA

to evaluate the feasibility of implementing alternative initiatives
to ring road construction to decongest urban areas such as
congestion charges, active traffic management systems and
carpool lanes
Complete the Taif ring road to decongest the urban area within Taif
Develop project-team framework for major projects, including

suitable resource allocation based on project value, and seamless
integration between design, procurement and execution phases
293
PRELIMINARY
Initiative 2021 2022 2023 2024 2025
Design and deploy customer service department that measures

customer satisfaction rating (e.g. % of complaints resolved on
time, quality of resolution, etc.) and links it to clear business
outcomes
Continuously review and maintain minimum level of service C

along major transport corridors through adoption of appropriate
capacity upgrades (eg. adding lane, adopting a 2+1 lanes option, etc.)
Work with all relevant entities, such as MoMRA, Ministry of Housing,

Modon, RCJY, to identify and assess the impact of future traffic
generators, and update the transport masterplan accordingly
Complete the Al-Baha ring road to decongest the urban area

within Al-Baha
Launch the second set of brownfield toll roads (remaining

highways) under a concession arrangement 2025
Redesign the organization structure (including processes,

systems, etc…) to be customer centric and improve customer journey
Develop the right incubating environment and necessary

changes in regulations to promote photovoltaic roads
Develop the right incubating environment and necessary changes

in regulations to promote advanced materials for construction of roads
294
PRELIMINARY
Initiative 2023 2024 2025 2026 2027
Design and develop the North entrance road to Abha as a

dual carriageway
Design and develop the South entrance road to Abha as an

expressway
295
Public Transport sector - Category 1 implementation schedule (1/2)
PRELIMINARY
Initiative 2017 2018 2019 2020
Review and upgrade safety standards for public transportation vehicles

(rolling stock, buses, taxis), commercial trucks, and maritime transport
(boat, ferries, etc.
Review and upgrade safety standards for public transportation

infrastructure (e.g. metro system, LRTs, BRTs)
Design and propose regulatory framework and standards for the public
transport sector (transportation law), including specific standards and
regulations for different systems, in accordance to and within the
boundaries of the established mandate of the organization
Develop and launch PTA web portal (transport gate) to provide critical
services (e.g., licensing) and facilitate customer interaction with the
organization
Develop and launch PTA digital platform (Wasel) to collect, monitor,

and analyse relevant data (e.g. real-time location, driver information)
on all public transport systems in the Kingdom
Develop and deploy environmental protection and energy efficiency

regulations for maritime transport
Develop or refine, in coordination with Ministry of Municipal and

Rural Affairs/Municipalities, public transport masterplans for
selected cities that qualify under PTA requirements and
criteria, including financing options
296
PRELIMINARY
Refine or confirm, in coordination with Ministry of Municipal and

Rural Affairs/Municipalities, existing public transport masterplans
for major cities in KSA, including identifying financing options

regulations for buses, trucks, and taxis in accordance with the latest
global standards

regulations for rolling stock and rail systems
Develop a common set of technical standards for the freight transport

(e.g., commercial trucks, freight trains, etc.) across the Kingdom,
taking into consideration the specific operating requirements
Setup and activate traffic database and IT platform for intra-city traffic
to serve as a decision support tool for future urban public transport
masterplans (starting with the largest cities and working with
municipalities to promote and support the system for smaller
qualified cities)
297
Public Transport sector - Category 2 implementation schedule
PRELIMINARY
Work with Ministry of Energy, Industry and Mineral Resources

(MEIMR) to define the national framework for fuel surcharge
Work with Ministry of Interior to define the national framework

for private vehicle licensing cost
Work with Ministry of Municipal and Rural Affairs/Municipalities

and other governmental entities (e.g., MoT, MoI, MoF, etc.)
to ensure implementation of public transport masterplans
Review and upgrade operating standards for the operation of

public transport systems (metro, buses, taxis) and commercial trucks
Develop a city specific tariff scheme for the use of public transportation
systems, to ensure affordability, and balance between social benefits
for the public and financial profits of the operators
Develop a common set of technical standards for public transport

systems (e.g., metro and rail rolling stock, buses, etc…) across
the different cities, taking into consideration the specific operating
requirements
Enhance the licensing regulations and procedures to include

mandatory testing and monitoring of emission and
environmental standards
298
Public Transport sector - Category 3 implementation schedule
PRELIMINARY
Initiative 2018 2019
Develop and deploy comprehensive training program for all

employees to accelerate on-boarding of new hires and
enhance existing in-house capabilities
Design and deploy comprehensive PTA employee performance

management system, including clear KPIs and career progression
framework, to increase accountability and reward high
performing employees
Perform comprehensive study on possible revenue generation

sources for PTA to minimize the governmental financial
support to the organization
Establish a PTA centre of excellence by empowering the

current studies department, to monitor, adopt and regulate
new technologies for the benefit of public transport sector
299
PRELIMINARY
Initiative 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Expand the current monitoring, inspection and enforcement

system from taxis to all other public transport vehicles including
metros, buses and trucks across the Kingdom
Design and launch awareness and promotion campaign for

utilization of public transport services
Create dedicated investment unit with necessary capabilities

to facilitate private investment attraction and support other
relevant entities (eg. Municipalities) in the preparation and
execution of successful public transport PPP projects
Work with the municipalities of the largest 5 cities in the

Kingdom to identify and deploy the most appropriate ITS
(intelligent traffic system) and TMS (traffic management system)
to suit the individual cities needs
Perform city-specific feasibility studies to recommend the

adoption of low/zero emission vehicles for public transport systems
Create a list of future projects suitable for private sector

participation, based on the outcome of the public transport masterplans
300
PRELIMINARY
Develop and deploy mandatory safety training program

for public transport operators, to enhance safety culture
and ensure compliance with safety regulations
Develop regulatory framework and general guidelines for

private sector participation in public transport projects
Develop and deploy, in conjunction with the Municipalities

and Ministry of Municipal and Rural Affairs, urban tolls,
parking fees, no-car zones and other specific urban policies
to stimulate demand for public transport with specific focus for the
city of Riyadh, Jeddah, Dammam, Mekkah, Madinah
Develop a standardized set of guidelines to ensure consistent

application of latest technologies by public transport operators
Develop the right regulatory environment to promote use of big

data to analyse passenger flows, road parameters and socio economic
factors to optimize and design future integrated networks
(across all public transit means) where customized customer
experience will be key differentiator
301
Rail sector - Category 1 implementation schedule
PRELIMINARY
Initiative 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Create railway traffic database for passenger and

freight and establish internal business intelligent unit
responsible to collect and analyze the data
Review and upgrade, SAR internal safety and security manual,

including safety management systems, in accordance with general
safety regulations mandated by various policy makers (Civil Defense,
Ministry of Labor, Higher Commission of Industrial Security, PTA)
Develop security risk profile for SAR assets to facilitate the

deployment of security interventions by MoI
Identify optimum pricing and costing structure for railway services,

in coordination with PTA, to prepare for future market liberalization
of railway services
Establish task force responsible to reassess existing railway masterplan

to define critical future railway developments, taking into account financial
viability and socio-economic impact, in coordination with and engagement
of different stakeholders (e.g. MoMRA, Modon)
Develop East-West connection Jeddah-Jubail via Sudair (Land bridge)1
Develop Yanbu-Jeddah rail link1,2
Develop Jeddah-Jizan rail link1,2
Develop Medina-Yanbu junction rail link 1,2
1 include design phase

2 as per rail masterplan schedule
302
PRELIMINARY
Review and update existing SAR business model and value

proposition, in accordance to future railway sector reform
Develop, in collaboration with UK consortium, a capability

building program for HSE department
SAR HSE department to develop list of environmental protection

and energy efficiency initiatives, in accordance to sector policies
and national targets
Define and launch asset management function, including review of

current stage-gate process, to address the entire value chain of future
projects; from business case justification during planning, to seamless
integration between procurement, execution, operation, and disposal
Develop best-in-class emergency response procedures in coordination with

civil defense and regional health authorities
303
PRELIMINARY
Initiative 2017 2018 2019 2020

Empower risk management function within SAR by providing
authority and dedicated financial resources for
centralized risk mitigation programs
Perform market research study to explore potential customer

experience upgrades, and prioritize based on future return
Review and improve management and technical training program

at SAR, with focus on railway and interface operations, to ensure
adequate capability and knowledge
Design and establish in-house best-in-class procurement &

contracting strategy, with focus on optimizing total cost of ownership
Develop and publish traffic demand forecasting studies to

improve visibility of potential opportunities to private operators
Review and upgrade safety training program for all new and
existing employees, and develop SAR employee safety performance
management system, to enhance safety culture and ensure
adherence to safety regulations
Establish and launch customer relations function within SAR

marketing department, for freight and passenger services, that works
in coordination with delivery unit, dedicated to improve customer
experience and delivery
Review and upgrade existing maintenance procedures to ensure

alignment with actual maintenance requirements, and deploy
continuous improvement mechanism to optimize maintenance
operations
304
PRELIMINARY
Initiative 2018 2019 2020 2021 2022
Design and deploy an Enterprise Project Management office

to ensure effective project governance and delivery
Establish and launch centralized strategic investment unit dedicated

to identify and maximize non-fare revenue streams
(e.g., real estate land bank, retail in stations, etc.)
Establish and launch SAR centralized strategic investment unit

responsible to identify and promote potential opportunities
to private investors
Establish, within QA/QC department, a technical team dedicated to

maximize local contractor capabilities ensure adherence to SAR
quality standards through training programs
Establish innovation unit, empowered by sufficient financial resources,

dedicated to identifying future trends and disruptive technologies,
and propose adoption of innovative solutions for railway sector
305
Ports sector - Category 1 implementation schedule (1/2)
PRELIMINARY
Finalize development of Saudi ports community digital platform
Design and launch the new SEAPA organization to act as an

independent, empowered regulator of the maritime sector and
deliver on the new mandate and requirements
Review and upgrade the tariff regime to support

achievement of the masterplan
Establish coordination committee between SEAPA and relevant

stakeholders, internal and external, to align on ports strategy
development and implementation
Design the right financial flows between SEAPA (as a regulator)

and service providers in the sector (i.e. PortCos, OpCos) to
minimize SEAPA's reliance on government funding
Optimize the concession regime to support expansion and

specialization plans for each port
Empower SEAPA (and eventually PortCos) to directly negotiate

concession agreements with different service providers to
maximize value for the maritime sector as opposed to
reduce initial costs
Develop a performance culture with clear performance pressure,

defined roles and responsibilities, KPIs, and career progression
options to promote ownership and accountability
306
Ports sector - Category 1 implementation schedule (2/2)
PRELIMINARY
Initiative 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Design, build and launch a maritime safety unit within SEAPA to

manage and upgrade safety across the sector
Improve current capabilities, tools and systems of the contracts

department within SEAPA to adopt a value based approach
to procurement and contracting
Create a business development unit in SEAPA that identifies,

incubates and spins off financially lucrative ventures, that could
financially support the regulator and sector
Optimize the concession regime to support environmental

protection and energy efficiency across the sector
Optimize the concession regime to ensure delivery of port

superstructure at optimal TCO, while accommodating the
capacity and energy efficiency prerogatives
Establish customer service department within SEAPA with clear KPIs

measuring customer satisfaction rate, quality of resolutions
and average resolution time
Design, build and launch an environmental protection and energy

efficiency unit within SEAPA to reduce the energy footprint of the
sector on the Kingdom
Work with KAP to specialize it in containers, focusing on transshipment

services, and expand its capacity to TEU eq. 10m by 2030, through
capital investments
307
Ports sector – Category 2 implementation schedule
PRELIMINARY
Initiative 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Setup the right PortCo (with the right asset allocation) to ensure
the creation of financially self-sustainable cluster of ports that
could support the largest majority of their CAPEX and OPEX needs
Build a logistic platform, including dry port, in Al-Khumra

that feeds off JIP and acts as a regional distribution centre
Build a logistic platform in Dammam that feeds off DMM

and acts as a regional distribution centre
Upgrade (or support the upgrade of) port infrastructure and

superstructure into green and energy efficient ones
308
Ports sector – Category 3 implementation schedule
PRELIMINARY
Design and launch a comprehensive monitoring, and enforcement

system to support the reduction of energy footprint across the
maritime sector

regulations to promote digitization of the entire maritime value chain
and creation of a single digital platform for ports operations, including
electronic transactions for ports services (i.e. iWallet)
Develop a standardized set of environmental protection and energy

efficiency guidelines based on the latest IMO standards and adapted
to the requirements of the Kingdom
309
Ports sector - Category 4 implementation schedule
PRELIMINARY
Initiative 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
regulations to promote automated berth management and allocation
Specialize JIP in containers and expand its capacity to TEU eq.
10m by 2030, through operational improvements
Review and update, in coordination with PTA, existing maritime
safety standards, in accordance to latest IMO standards, and
monitor compliance across all ports in the Kingdom
Specialize DMM in containers and cargo, expand its capacity
to TEU eq. 5m by 2030, through operational improvements
Specialize remaining ports, both commercial and industrial, in
dry bulk, liquid bulk and/or cargo based on a case by case analysis
of host region respective needs
Launch awareness and involvement campaigns to educate
maritime stakeholders about safety
Balance liquid/dry bulk requirements across remaining ports
by shuffling capacities to meet 2030 demand
Collect and analyse data related to customer complaints and
use as a basis for continuous improvement
Create centre of excellence to research new trends and
recommend adoption of latest technologies in the maritime
transport and infrastructure
Work with KAEC, to develop a logistics platform in KAEC that
feeds off KAP and acts as an export/re-export centre to East Africa
Work with Royal Commission of Jubail and Yanbu to develop a
logistic platform in Jubail, that acts as a petchem and heavy industries
distribution hub for the East coast
Work with Royal Commission of Jubail and Yanbu to develop a
logistics platform in Yanbu, that acts as a petchem and heavy
industries distribution hub for the West coast
Work with Royal Commission in Jizan to develop logistics
platform, focused on supporting Chinese "One Belt One Road" project TBD
310
Air sector - Category 1 implementation schedule (1/2)
PRELIMINARY
Develop guidelines for service providers (i.e. airport employees,

airline employees) qualification levels in accordance to latest
ICAO safety standards
Review and upgrade current safety protocol, with specific focus

on consequence management and penalty enforcement for
failing to report by expediting the implementation of the SSP program
GACA to complete development of the “Civil Aviation Act” to

define and detail the extent of its future mandate, authority
and responsibility as regulator of the aviation industry, in
preparation of submission to and approval from council of ministers
GACA/SAVC to develop the appropriate management model to

maximize benefits of sector corporatization and privatization
(i.e. optimal airport clustering, financial flows)
Review and clarify the role and responsibility of holding company

vis-a-vis GACA as a regulator in monitoring and enforcing
PPP terms
311
PRELIMINARY
Initiative 2017 2018 2019 2020 2021
GACA to accelerate recruiting and on boarding of technical

staff to maintain a sufficient number of technical resources to
avoid generational gap
Accelerate the airport certification program focused on

development of safety and operational manuals to ensure
certification of all airports in the Kingdom by 2020
GACA to upgrade its training program (across most important ICAO

critical areas) and ensure sufficient financial resources to roll-out across
all technical staff
GACA to establish dedicated environmental unit to monitor/enforce

current regulations and propose adoption of new technologies regarding
energy efficiency and environmental protection
GACA to design and deploy regulatory framework focused on

minimizing energy consumption and environmental impact of
service providers (e.g. airport, ground handling, airlines) in accordance
with international guidelines and national targets
Support and promote localization of certain sectors of the aviation

industry value chain including OEM
312
Air sector - Category 2 implementation schedule
PRELIMINARY
Initiative 2018 2019 2020 2021 2022 2023
Reconfigure the network of Hajj airports to accommodate extra

Hajj and Umra travellers volumes including setting up all the necessary air links
Accelerate localization of supporting services within the airline industry,

by initially focusing on training centres and MRO
GACA to design, launch and enforce mandatory data collection

and reporting systems, focused on energy consumption and
environmental impact, to be implemented by airport operators and airlines
GACA to launch and implement airport carbon accreditation

program for all regional and international airports, aimed at minimizing
overall carbon footprint of airports
Expand Jeddah cargo city to 2.5m tons p.a by 2030 and transform it
into a logistics hub to serve the East African market
Expand Dammam cargo city to 1m tons p.a by 2030 ton and transform
it into the regional cargo city for the Eastern Province
313
Air sector - Category 3 implementation schedule
PRELIMINARY

Set-up the Hajj transport committee to promote improved collaboration
(planning, operations) among key stakeholders and increase efficiency
of intermodal connections to Holy sites
Establish a dedicated innovation unit within GACA to analyse future trends and
recommend adoption of latest technologies and best practices in the aviation sector
to improve performance and customer experience, such as real-time tracking of bags,
biometric self-service systems, and big data analytics to optimize slot allocation
Develop list of potential projects suitable for private sector participation
In coordination with MoF/NCP, review and upgrade existing PPP and

concession regulatory framework to accelerate private sector investment
in the aviation sector
Review existing concession operating agreement framework to ensure the delivery

of satisfactory level of service to customers, along with adequate enforcing and
monitoring mechanism
Review and develop pricing guidelines that ensures affordability of "economy" air
services in light of new macro-economic trends, e.g. energy prices liberalization
GACA/SAVC to review and upgrade airport master planning guidelines to include

analysis of potential revenues from non-aviation sources
Create a prioritized list of customer service interventions at airports and

airlines, in order to propose potential policy interventions to improve
customer experience
Support the launch and activation of the international hub system for Jeddah,
Riyadh, and Dammam airports
314
PRELIMINARY
Initiative 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Work with airlines to effectively and efficiently activate most

attractive international links through creating new/expanding
bilateral agreements
GACA/SAVC to establish PMO and build internal project

management capabilities to supervise future projects and
TCO requirements
GACA/SAVC to design and deploy a stage gate process,

including comprehensive business case framework, to enable
fact-based investment decisions
Work with MoD to lift/reduce no-fly zone restrictions affecting the

top-10 most important air corridors over the Kingdom
GACA/SAVC to set minimum maintenance standards for service

operators (in particular airport operators) that guarantee optimal
lifecycle for aviation assets
Review and update mandates of GACA customer service department,

including definition of appropriate KPIs and KPTs, to further empower
their control over customer experience at airports
Expand KAIA (JED) to 80m Pax by 2030 through capital expansions

and operationsal improvements
315
Air sector - implementation schedule (2/4)
PRELIMINARY
Initiative 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029
Expand KKIA (RUH) to 47m pax by 2030 through capital

Expand KFIA (DMM) to 21m pax p.a. by 2030 through capital

Expand PMIA (MED) to 12m pax p.a. by 2030 through capital

Review and adjust capacity of regional airports to meet 2030

demand through operational improvements first
Review and adjust capacity of domestic airports to meet

2030 demand through operational improvements first
Expand Riyadh cargo city to 2m ton p.a by 2030 and transform it into
the parcel's hub for the GCC
Analyze and define list of opportunities for future development of

intermodal logistics zones, including cargo villages, at relevant airports
316
PRELIMINARY
Initiative 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Expand Taif (TIF) airport to 5.5mn pax by 2030 through capital investments
Develop Najran airport to 0.5M pax by 2030 through capital investments
Develop Farasan airport to 0.5m pax by 2030 through capital investments
Expand Sharorah airport to 0.5m pax by 2030 through capital expansions

Expand Baha airport to 1m pax by 2030 through capital expansions

Expand Al-Jouf airport to 1m pax by 2030 through capital expansions

Expand Yanbu airport to 3m pax by 2030 through capital expansions

Expand Tabuk airport to 3m pax by 2030 through capital expansions

317
PRELIMINARY
Initiative 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
Expand Qassim airport to 3m pax by 2030 through capital expansions

Expand Qaisumah airport to 0.5m pax by 2030 through capital expansions

Expand Hail airport to 3m pax by 2030 through capital expansions

Expand Jizan airport to 6m pax by 2030 through capital expansions

Expand Abha airport to 6m pax by 2030 through capital expansions

Expand Arar airport to 0.5m pax by 2030 through capital expansions

Expand Rafha airport to 0.25m pax by 2030 through capital expansions

Expand Al-Ahsa airport to 1m pax by 2030 through capital expansions

Expand Qurayat airport to 0.25m pax by 2030 through capital expansions

318
Contents

▪ NTS 2030
319
Key findings and conclusions
1. The transport sector governance is multi-layered with a large number of internal and
external stakeholders
2. Efforts are underway to streamline the sector’s governance and clarify roles and
responsibilities
3. However, important challenges still exist along a number of dimensions, diluting
accountability and reducing effectiveness of the sector
4. Action is required to refine the roles and responsibilities internally (within the sector) and
externally (authority matrix) to improve the sector’s health and enable achievement of its
objectives
320
external stakeholders
▪ The sector’s governance has an internal and external component
▪ Externally the sector interfaces with “end-users”, “asset owners”, “financiers” and regulators
– Private sector, SOEs, and governmental entities depend on the sector for effective operations
– A few players share the ownership of some transport assets
– MoF finances major infrastructure projects and approves budget requests of different
transport organizations (few exceptions for some bankable projects)
– MoMRA, MoI, SASO, etc… regulate parts of the transport sector such as urban public
transport, road safety, etc…
▪ Internally the sector has a number of players that interact formally/ informally
– The Ministry of Transport regulates roads, represents the sector at national level and chairs
affiliated regulators
– The Saudi Ports Authority owns and regulates most commercial and industrial ports
– The General Authority of Civil Aviation owns, regulates, operates airports, as well as regulates
airlines and air transport
– The Saudi Railway Organization (SRO) directly operates the freight and passenger network
connecting Riyadh to Dammam, and is responsible for the HHR project1
– SAR owns and operates the North-South freight and passenger network
1 HHR project is currently built under BOT arrangement with an international consortium
321
external stakeholders…
B
Transport sector external stakeholders CEDA (and council
of Ministers)
A
National regulators Transport sector system Asset Owners (e.g.
(e.g. MoMRA, MoI, PIF, Aramco, MoMRA)
Sector oversight Ministry of Transportation
SASO)
Dept. of
Mode regulators Roads
Dept. of
Asset owners Roads
Asset financiers (e.g. Operators

private
operators
Dept. of
Roads
&
MoF) private operators
End Users
1 The new holding company that will house all airports

2 Operator of Medina airport
1. …and number of transport assets outside of the direct purview of the Ministry and
its affiliates
Not covered by MoT/affiliates mandate and key strategies Partially2 covered
Saudi Aramco Security apparatus (i.e. MoMRA1 MoMRA

• Pipelines MoDA, MoI) • Intra-city municipal • Metros
• All other transport • All transport assets e.g. roads • Buses
assets e.g. – Private roads • Taxis
– Private roads – Airports
• Public transport
– Ports
– Airports
1 Municipality transport assets planning and strategy is not covered in the NTS
2 From a regulatory angle only
323
3
A. Internally the sector has a number of players some of which cover multiple roles
simultaneously
Description of key roles within the sector
▪ Regulates, owns (i.e., designs, builds, operates) and maintains national roads
▪ Represents the sector at national level (Council of Minister, CEDA, etc.) and internationally in conjunction with the
Ministry of transport (incl.
relevant regulator
Roads deputyship)
▪ Chairs all the players in the sector through the Minister providing guidance and, potentially, vetoing decisions
▪ Regulates, owns, operates airports, as well as regulates airlines and air transport
GACA (General authority of
civil aviation)
▪ Regulates and owns (i.e., designs, builds, operates and concessions) most commercial and industrial ports
SEAPA (Ports authority)
▪ Broad regulatory mandate that touches upon all transport modes except for air transport
– Regulates all inter and intra-city public transport (i.e., metros, taxis, inter-city buses, intra-city buses, commercial
PTA (public transport
trucks)
authority)
– Regulates rail assets and operations across the Kingdom
– Regulates maritime transport (i.e., ferries, Saudi ships)
▪ SRO directly operates the freight and passenger connecting Riyadh to Dammam, and it is responsible for the HHR1
project
SRO and SAR
▪ SAR owns and operates the North-South freight and passenger network
1 Haramain High-speed Rail

B. Externally, the sector interfaces with “end users”, “asset owners”, and “regulators”
Description of key role vis-à-vis the sector
▪ CEDA (and the Council of Ministers) is the entity responsible to approve the transport sector’s strategy
CEDA and asset development plans in accordance to the Kingdom’s objectives and targets
▪ Private sector, SOEs, and governmental entities like Modon, ECA, etc… are all transport sector’s end-
End Users users and depend on it for effective operations
▪ A few players share the ownership of some transport assets

– MoMRA (and the municipalities) owns all upcoming public transport assets
– The private sector owns private ports KAEC (KAP)
Asset owners – PIF currently owns the rail assets through SAR and it is expected to expand its asset portfolio to
acquire further transport infrastructure e.g., ports and airports
– Aramco owns all the pipelines, a few oil exporting ports as well as some airports
– The defense apparatus (i.e., MoD, MoI) owns few roads and airports
▪ MoMRA, MoI, SASO, etc… regulates parts of transport sector such as urban transport, road safety, etc..
National regulators
▪ MoF is the ultimate responsible for financing all the non-profitable infrastructure assets and to fund the
Asset financiers budget of the transport organizations

2. Efforts are currently underway to simplify the sector’s governance and clarify roles
and responsibilities
2016 ▪ Minister of Transport is appointed chairman of General Authority of Civil
Aviation (GACA)
▪ Minister of Transport is appointed chairman of Saudi Railway Company (SAR)
▪ PTA’ s mandate is amended to clarify its role as only regulatory authority for
rail, public, and maritime transport
▪ All national rail assets (i.e., SA, HHR, SRO) ownership moved to SAR
▪ Commencement of port sector reform by SEAPA to drive a corporatize high
performance sector
– Review of sector’s internal governance to define the structure roles and
responsibilities of different players in the sector
– Review of sector internal governance to define the key stakeholders and
their relationship with sector
▪ Commencement of Air sector reform to corporatize KSA airports and sector
governance
2017 ▪ Railway sector governance reform is being kicked-off by SRO
326
2. Furthermore, a number of steps are on-going to further improve sector performance,
in particular process and efficiency enhancements
2012 2013 2014 2015 2016 2017
Building Developing Building a

public transport urban transport logistics hub
systems masterplans
• Arriyadh Development • The public transport authority • MEP and MoT jointly crafted “logistics hub”
Authority (ADA) launched (PTA) developed 11 public strategy launching 10 key initiatives including:
the Riyadh public transport masterplans for key – Regulatory reforms to upgrade the sector
transport program to cities and towns across the governance – SEAPA ports reform
improve mobility and Kingdom, and is the process
reduce congestion within of launching another five
– Import/export process streamlining with
the Saudi Customs, to reduce dwell time
Riyadh city masterplans
– Infrastructure improvements – Dammam-
Riyadh rail network upgrade led by SRO
327
3. However, important challenges still exist along a number of dimensions, diluting
accountability and reducing effectiveness of the sector
 Asset regulations and ownership/operations are not always separated, resulting in

potential conflict of interest and diluting ability of the regulator to effectively monitor
performance
 Sector wide strategy and direction setting doesn’t happen systematically or at the right
level with sub-optimal coordination across modes
 Integrated multi-modal capital planning, effective multi-modal investment decision
tradeoffs and cross-mode interfaces design doesn’t happen systematically across the
sector
 Stakeholders often bypass MoT and interact/negotiate development of new
infrastructure assets directly with current mode managers, preventing integrated asset
development
328
3. Asset regulations, ownership and operations are often not separated, resulting in
potential conflict of interest and inefficient performance
Current operating models
Sector Entity Regulation Ownership Operation Emerging insights
▪ Single entity usually
Aviation performs regulatory and
Private Operators operation roles within
same mode
▪ Operating model creates
conflict of interest,
Rail leading to sub-optimal
performance
▪ Some assets outside
realm of regulators (KAP,
Roads Aramco airports)
Maritime
Private Operators

3. Sector wide strategy and direction setting doesn’t happen systematically or at the
right level with sub-optimal coordination across modes
Emerging insights
The last transport strategy (NTS 2011) was not developed as an
inclusive effort by all stakeholders; MoT led effort independently
resulting in narrow focus on transport sector
Affiliates across the sector developed their own strategy in

isolation from NTS 2011, resulting in a disparate set of action plans
Cross-mode coordination is deferred to mode initiative without a

structured approach and a strategic view of the transport sector
as a whole
Sector-wide guidelines on critical themes such as environment

protection, energy efficiency and safety, are missing leading to
important gaps and inconsistencies in mode specific regulations

3. Integrated multi-modal capital planning and cross-mode interface design doesn’t
happen systematically across the sector
Examples of sub-optimal cross-mode interface designs Emerging insights
▪ Silo planning and
Planned execution of projects
SAR North-
Haramain High lead to lack of
South Railway is
Speed Rail integration between
not connected
Project does modes
to SRO Riyadh-
not connect to ▪ No central entity to
Dammam Line
Medina Airport integrate and prioritize
across different modes
▪ No single entity to
oversee the individual
SAR Railway modes’ adherence to the
Planned Riyadh
network is not integrated guidelines
Metro does not
connected to and masterplan
connect to
King Khalid
existing SAR
International
Railway Station
Airport

3. Stakeholders often bypass MoT and interact/negotiate directly with current mode
managers, preventing integrated asset development
MoMRA National Spatial Strategy (NSS) Heads of region go directly to SEAPA

is not coordinated with MoT and only PTA SEAPA for new ports (e.g. Makkah governorate
marginally with PTA masterplans for PT and Al-lith port)
Ministry of
MoT Transportation
New projects planning and Local authorities interact and
Roads GACA
prioritization are often dictated by directly negotiate with GACA any
local authorities requests rather than requests for new airports without
strategic fact-based decision process MoT involvement
SAR/SRO
Modon, SOEs, and other industrial

estates engage in direct negotiations
with SAR for new rail requirements

4. To address the sector’s challenges, and improve and streamline its governance we
will need to answer 5 key questions
Key questions driving the improvement of the sector’s governance:

A. Should regulatory authority be separated from asset
ownership/operations?
B. Should the roads regulatory body remain within MoT or become a
separate authority?
C. What would be the structure and role of an independent roads asset
owner/operator
D. Should the other regulatory bodies be integrated into MoT or
maintain their independency?
E. What would be the role of MoT in a sector with independent
regulators and asset owners/operators?
F. In a system with separate regulatory entities, what is the appropriate
mandate for PTA?
333
A. Clear separation between mode regulators and asset owner/operators eliminates
conflict of interest and facilitates improved mode performance (1/2)
Option 1 – Unified regulators and asset owners/operators Option 2 – Separated regulators and asset owners/operators
Mode specific regulator (Regulator)

Mode specific regulator (Regulator) Mode Specific Asset
Mode Specific Regulator and Asset Owner/Operator Mode Specific Regulator
Owner/Operator
Description Description
▪ A single entity (transport mode authority) manages the entire transport mode covering the ▪ Clear separation between the regulatory authority and the asset owner/operator that acts as an
dual function of regulator and asset owner, and, potentially, asset operator independent organization
Role and responsibilities Role and responsibilities1
▪ The transport mode authorities: ▪ Mode Regulators:

– Define mode strategy and provide mode-specific inputs to MoT during master-planning – Define overall mode strategy
– Set, deploy, monitor and enforce regulations and operations/HSE standards for each – Set, deploy, monitor and enforce regulations and operations/HSE standards for each
transport mode transport mode
– Design concession framework and set tariff scheme for service providers, – Design concession framework and set tariff schemes for service providers
– Prepare, negotiate and manage PSP and concession agreements – Support mode-specific capital plans during master-planning
– Own, operate and maintain (directly or through concessions) existing assets – Represent mode on the international stage
– Propose and deliver new infrastructure assets ▪ Asset owners/operators:
– Own, operate and maintain (through concessions) existing mode assets
– Represent the mode on the international stage – Propose and deliver new infrastructure assets
– Prepare, negotiate and manage PSP and concession agreements
– Provide mode-specific input during creation of national masterplan
1 Extent of roles and responsibilities could be customized per mode and depending on the lifecycle of each one
A. Clear separation between mode regulators and asset owner/operators eliminates
conflict of interest and facilitates improved mode performance (2/2)
Option 1 – Unified regulators and asset owners/operators Option 2 – Separated regulators and asset owners/operators Recommended
option

ModeSpecific
Mode specificRegulator
regulator and
(Regulator)
Asset Mode Specific Mode Specific Asset
Owner/Operator Regulator Owner/Operator
▪ Simplifies and (potentially) accelerates decision making ▪ Improves overall system performance, driven by specialization
process and execution and potentially higher competitive pressure
▪ Creates conflict of interest, particularly heightened by assets ▪ Reduces/eliminates conflict of interest by leveling playing field
owned (and sometime operated)1 by the regulator for all players and introducing an independent gatekeeper (MoT)
▪ Reduces system performance, due to lack of specialization ▪ Requires more resources (i.e. financial, human) especially at the
and competitive pressure regulator’s level
1 GACA currently owns and operate the vast majority of KSA airports
A. Separation of regulatory authority from asset owners/operators is standard practice
across different countries
Ministry of Enterprise and

▪ Regulator: Swedish Transport Agency regulates activities across different ▪ European Commission
Innovation transportmodes1 recommends regulatory
▪ Asset owner: Swedish Transport Administration designs, procures and authority to be
Regulators Operators
delivers assets/infrastructure “independent from any
Swedish Transport Swedish Transport Administration ▪ Operator: Swedish Transport Administration operates2 rail and roads, infrastructure manager,
Agency
while private companies/consortia generally operate airports and ports charging body, allocation
body or applicant. It is
independent in its
▪ Regulator: Mode-specific bodies (CCC, ORR, Maritime and Coast guard
Department for Transport
agency) set relevant standards and regulations organization, legal structure,
Regulators Operators ▪ Asset owner/operator (public): Mode-specific state-owned funding and in its decision
companies/agencies (Network rail, highways England) design, procure, making”
Network Private
CAA
Maritime
Rail operators delivers and operates rail and roads assets ▪ Separation between
& Coast Guard
agency Private
▪ Asset owner/operator (private): Private companies typically build, regulatory entities and asset
ORR
Highways
England
operators maintain and operate ports and airports owners/operators guaran-
tees the full independency
Ministry of Transport, Ports ▪ Regulator: Mode-specific regulatory bodies (ANAC, ANTAQ, ANTT) set of the regulatory body
standards and regulations ▪ Asset owners/operators
and Civil Aviation
Regulators Operators ▪ Asset owner: Mode-specific state-owned companies (EPL, VALEC, acquire increasing
ANAC ANTAQ EPL Infraero
Infraero) design, procure and deliver assets/infrastructure specialization with
▪ Operator: Mode-specific state-owned companies operate and maintain significant improvement of
major assets. Maritime assets are generally operated by private operations performances
ANTT VALEC
companies
1 Public Transportation is generally under local authorities

2 Operates and maintains
SOURCE: European commission, Team analysis 336
B. Decoupling roads deputyship from the MoT will streamline decision making process
and increase accountability of roads department (1/2)
Option 1 – Road regulator as part of the MoT Option 2 – Independent road regulator and Ops Co. Detailed next
Roads deputyship remains within the MoT Roads deputyship separated in independent regulatory authority and Ops Co.
Roads
Roads Roads
Regulatory
deputyship company
authority
▪ Maintain the roads deputyship within the Ministry of Transport without altering the ▪ Spin-off the roads deputyship from the Ministry of Transport creating an independent
current role and responsibilities regulatory authority and potentially a state-owned Roads operations company
Role and responsibilities Role and responsibilities

▪ The road deputyship maintains the current responsibilities: ▪ Road regulatory authority:
– Set, deploy, monitor and enforce regulations and standards for the road assets – Defines overall roads strategy
– Plan, design and deliver new road assets – Sets, deploys, monitors and enforces regulations and standards for roads
– Design concession framework and set tariff scheme for future private operators, – Set tariff schemes within the appropriate concession framework for future private
– Prepare, negotiate and manage PPP and concession agreements operators
– Own, operate and maintain existing assets – Provide input on roads capital plans during master-planning
– Represent mode on the international stage

B. Decoupling roads deputyship from the MoT will streamline decision making process
and increase accountability of roads department (2/2)
Recommended option
Option 1 – Road regulator as part of the MoT Option 2 – Independent road regulator and Ops Co.
Detailed next
Roads deputyship remains within the MoT Roads deputyship separated in independent regulatory authority and Ops Co.
Roads
Roads Roads
Regulatory
deputyship company
authority
▪ Strongly integrates between the Ministry and Roads’ agenda ▪ Streamlines decision making due to heightened independence and promotion to an
authority status
▪ Dilutes Ministry’s focus between strategic oversight of the full sector, and tactical
management of a single mode ▪ Improves specialization and mode-specific knowledge, driven by authority and
company’s ability to hire and retain best capabilities
▪ Reduces independence of the roads sector and could lead to lengthier/ more
bureaucratic decision making ▪ Reduces perceived favoritism by promoting Roads to a peer level with other
transport regulators
▪ Could (be perceived to) favor Roads vis-à-vis other transport regulators given
proximity to the Ministry ▪ Focuses the Ministry on being a strategic, sector-wide overseer and gatekeeper (if
Ministry retains no regulators)
▪ Requires a somewhat costly setup, separation and reattribution of roles across the
new entities

C. The new Roads company will be an independent state-owned (SOE) entity with
strong P&L responsibility and private sector mentality
Roads Operations Company structure Key features
▪ The Roads company will plan, deliver, operate and maintain the national road
network, directly or indirectly through PPP and concessions. Funds through:
MoT MoF – MoF for non-toll roads
– Private sector participation (PPP or concessions) or borrowing from capital
market for toll-roads (i.e. highways)
▪ Board of Directors will ultimately approve the company plans and budgets. It
Board of will have Ministry of Transport and Ministry of Finance representation
Directors ▪ CEO will develop plans, design budgets, and actively support selection of
current/ future assets to be delivered under alternative financing mechanisms
(e.g. PPP)
▪ VP Planning & Design, will identify and design future projects, through
comprehensive traffic forecasts analysis, socio-economic evaluation, TCO and in
CEO accordance with standards/guidelines set by the Road regulator
▪ VP of Construction and Maintenance, will contract and oversee delivery of new
projects, as well as maintenance of current and future projects
▪ VP of Safety and Quality, will guarantee the implementation of safety and
quality standards as well as national safety programs across the national roads
VP network
VP planning & VP Safety & VP PPP &
design
construction &
Quality concessions ▪ VP of PPP and Concessions, will prepare, concession out (incl. negotiate) and
maintenance manage (incl. revenue collection) all PSP agreements across the national road
network

C. Several developing countries established independent road SOEs to deploy national
roads, improve specialization and capital/operational efficiency
Country Entity Assets Description and Mandate
South Africa
SANRAL ▪ Highways ▪ The South African National Roads Agency (SANRAL), is an independent, statutory
▪ Major national company, fully owned by the Ministry of Transport
roads ▪ It is governed by a board of eight people, six appointed by the Minister of Transport;
a representative of the Minister of Finance, and the CEO appointed by the board
▪ SANRAL’s improves, manages, maintains and finances the national road network
▪ SANRAL’s primary sources of funding:
– National treasury for non-toll roads
– Borrowings from capital and money markets for toll roads or concessions of
roads to private sector consortia.
KGM ▪ Highways ▪ The General Directorate of Highways (KGM) is a state agency responsible for building
Turkey ▪ Motorways and maintaining all public roadways outside of cities and towns
▪ Province roads ▪ KGM is under the jurisdiction of the Ministry of Transport and Communication
▪ The agency operates through its 18 divisions across the country
▪ The agency manages and collects tolls from roads and bridges
NHAI ▪ Highways ▪ The National Highways Authority of India (NHAI) is an independent agency that
India reports directly to the Ministry of Road Transport and Highways
▪ NHAI implements the National Highways Development Project (NHDP)
▪ NHAI maintains, manages and collects toll across national highways
SOURCE: SANRAL, KGM, NHAI, Team analysis 340
D. Independent and empowered mode regulators will improve specialization and
facilitate decision making process (1/2)
Option 1 – Regulators as deputyships within MoT Option 2 – Regulators as independent authorities
Ministry of Transportation Ministry of Transportation
Transport & Transport

Roads Rail Maritime Aviation Roads Rail Maritime Aviation
PT & PT
▪ Ministry consolidates transport sector by integrating every mode regulators and ▪ Maintain independent mode regulators for each transport mode creating a new
transforming them into controlled deputyships independent regulatory authority for roads

▪ The Ministry as an extended regulator ▪ The regulators (in addition to their typical regulatory role):
– Sets, deploys, monitors and enforces standards and regulations for each – Translate sector-wide strategy into mode-specific strategies
transport mode – Act as a liaison between owners/operators and the Ministry of Transport
– Represents the sector and the individual modes at national level vis-à-vis other – Convey mode specific needs back to the Ministry
governmental agencies and Ministries
– Defines regulatory framework for PSP agreements and sets tariff schemes for the
service providers of each transport mode

D. Independent and empowered mode regulators will improve specialization and
facilitate decision making process (2/2) Recommended option
Option 1 – Regulators as deputyships within MoT Option 2 – Regulators as independent authorities
Transport & Transport

PT & PT
▪ Simplifies integration of mode agendas and execution of top-down Ministry ▪ Improves accountability, accelerates decision making and execution of mode specific
directions strategic decisions
▪ Limits regulators’ accountability, ownership and speedy execution of mode ▪ Improves specialization and mode-specific knowledge, driven by authority’s ability
specific strategic decisions to hire and retain best capabilities
▪ Fragments the Ministry’s focus across opposing tasks (i.e. sector-wide direction ▪ Allows the Ministry to focus on sector-wide strategic direction setting, oversight and
setting and mode specific tactical management) effective gatekeeping
▪ Reduces ability of different players to healthily challenge direction ▪ Enables a healthy dynamic between the different players to challenge mode-
specific/sector-wide strategies and directions
▪ Carries substantial challenges and friction to reintegrate the current
independent authorities in the Ministry ▪ Requires a shift in the Ministry’s attention and build-up of important oversight and
integration capabilities

D. In countries ranking high in the LPI1, the transport sector is regulated through several
mode-specific entities mostly independent from the Ministry
Country
LPI rank
Regulators of different transport modes in successful countries2
Germany UK USA UAE Canada France Australia
Transport modes 1st 8th 10th 13th 14th 16th 19th
Roads Intra-city
Inter-city
Rail Intra-city
Inter-city
Public Intra-city
Transport
Inter-city
Maritime
Air
1 Logistics Performance Index, World Bank 2 Countries selected based on LPI rank, size, population and political system (federal and centralized)
SOURCE: Press search, expert interviews, team analysis, World Bank LPI Index 343
E. Reaffirming the Ministry’s position as a central direction setter and planner will
provide a balance between sector wide and individual mode needs
Option 1 – MoT as a coordinating entity Option 2 – MoT as a central planner and overseer
Public Public
Transport Transport
▪ The Ministry becomes a conveners for completely independent strong regulatory authorities ▪ Ministry empowered to be the coordinator, gatekeeper and ultimate authority for the entire
that manage the specific transport mode end-to-end transport sector
▪ The Ministry: ▪ The Ministry:

– MoT convenes different modes and facilitates integration of mode strategies and capital – Sets the strategy and direction of the sector, including capital deployment plan by striking
deployment plans the right investment trade-offs between modes
– MoT facilitates coordination with other governmental entities and/or Ministries – Proactively coordinates between different transport modes to ensure the development of
– MoT acts as an observer in budget discussion with MoF adequate multimodal interfaces/hubs
▪ The Regulators – Oversees the individual modes to ensure they deliver on the sector direction
– Define mode specific strategy including capital deployment plans – Acts as a gatekeeper for the sector, managing ad-hoc requests from external
– Manage the specific mode end-to-end while regulating assets and operators including stakeholders, and ensuring their execution is in line with sector strategy
definition of regulatory framework and tariff scheme for concession – Represents the sector at national level vis-à-vis CEDA, the Council of Ministries and other
– Inform MoT of the mode specific development plans and strategy ministries, such as MoF, MoMRA, etc…
– Request and negotiate budget allocation with MoF

E. Reaffirming the Ministry’s position as a central direction setter and planner will
provide a balance between sector wide and individual mode needs
Option 1 – MoT as a coordinating entity Option 2 – MoT as a central planner and overseer Recommended option
Public Public
Transport Transport
▪ Improves mode specific planning and direction setting ▪ Guarantees a unified and homogenized sector strategy, that could be
effectively cascaded down to mode level
▪ Limits efficiency of integrated planning, especially along multi-
modal interfaces ▪ Guarantees a coordinated capital deployment approach where
different modes effectively coordinate and interface
▪ Limits ability to set an integrated sector-wide direction
▪ Enables strong gatekeeping by striking the right tradeoffs between
▪ Limits the gatekeeping ability of individual Modes vis-à-vis more individual mode plans and external stakeholders request/needs
powerful external stakeholders to prevent requests, outside of
agreed upon plans ▪ Enables objective and independent review and steering of individual
mode’s performance
▪ Relies on the regulator to monitor their own performance and
progress across individual modes ▪ Requires relatively fast build-up of important integration, planning
and oversight capabilities at the Ministry

E. The presence of a sector coordinator can be found in most countries that score high
on LPI
Xth Country
LPI rank
Transport sector governance models of successful countries2
Germany UK USA UAE Canada France Australia
1st 8th 10th 13th 14th 16th 19th
Sector
enablement
Sector Planning
coordination
&
integration1 In coordination with
Emirates’ authority
Delivery
oversight
Countries with successful transport sectors rely on sector integration entities often represented by the Ministry of Transport or similar authorities responsible for
coordination and enablement, planning, and delivery oversight
1 Refers to ultimate owner of sector integration, even if other entities are responsible of doing the planning, delivery oversight or enablement at a region or mode level
SOURCE: Company websites, Press search, expert interviews, team analysis, World Bank LPI Index 346
F. Several options are available for PTA structure and mandate, clarifying its authority
and responsibilities
PTA regulates Rail, Maritime, and Public Transport Completely separated mode regulators Road, Rail and PT regulation under PTA
MoT MoT MoT
GACA SEAPA Roads PTA GACA SEAPA Roads Rail PTA GACA SEAPA PTA
Mari- Public Mari- Public Mari- Public

Rail Rail Road
time Trans. time Trans. time Trans.
Pros and Cons Pros and Cons Pros and Cons
▪ Minimal disruption to the sector and to PTA structure ▪ Increased focus on and accountability across each mode ▪ Maximizes coordination across land transport
▪ Increased focus on and accountability across Roads ▪ Quick and direct decision making process ▪ Reduced time, resources and friction costs associated
with implementing new structure
▪ Important time and resources required to ramp up the ▪ Significant friction costs required to adjust PTA mandate ▪ Improved ability for MoT to coordinate, given lower
new authority and set up a new road authority number of system players
▪ Significant build-up of coordination and planning ▪ Significant effort to effectively manage and coordinate
capabilities at MoT within PTA
▪ Significant accumulation of power within PTA, potentially
challenging MoT’s position
International Examples with International Examples with International Examples with

Similar Structure Similar Structure Similar Structure
Germany UAE (Dubai RTA)
South Africa

F. Public transport agencies/authorities have a unique scope in each country
depending on their maturity level
One regulator covering all One regulator
sectors One regulator by mode by location Hybrid model
▪ Only several cities

(e.g., NY, and
Dubai New York state UK Japan Turkey Malaysia Dubai) have one
regulator covering
Buses Road Transport Bureau all the public
transport sectors
In city (also operator)
Land Public Transport ▪ Other countries

Metro/ Commission
are organized
train depending on
Railway Bureau their maturity
level
(non-ministerial Turkish State Railways Railway Assets
government Corporation &
Rail department)1
– By Mode (UK,
Japan) with a
Inter-city regulator at
General Directo-rate
of Highways
city level
Buses Road Transport Bureau Regulation
(TBC)
– By location
(Turkey)
9 + authorities
(Ferry) General Directorate of EXAMPLES: Port Klang – Hybrid model
Maritime Maritime Bureau Sea and Inland
Waterways Regulation
Authority
Johor Port Authority (Malaysia)
SOURCE: Company Websites, Press Search, expert interviews, team analysis 348
Key actions across the sector are required to ensure a governance that drives the
desired objectives and sector performance…
Key questions Key recommendations Rationale
A Should regulatory authority be separated ▪ Complete separation between regula-tory ▪ Elimination of the conflict of interest and
from asset ownership/operations? authority and asset ownership/ operations simultaneous improvement of system-mode
performances
B Should the roads regulatory body remain ▪ Spin-off road regulatory body from MoT ▪ Improve decision making and performances
within MoT or become a separate creating independent authority of road entity while increasing strategic focus
authority? of MoT
C What would be the structure and role of ▪ Create independent state-owned roads ▪ Increase specialization, accountability and
an independent roads asset company responsible for operation and P&L responsibility of roads delivery entity
owner/operator maintenance of the road network
D Should the other regulatory bodies be ▪ Maintain full independency of the ▪ Optimize mode-specific specialization and
integrated into MoT or maintain their regulatory bodies across all the transport flexibility by leveraging current structure
independency? modes
E What would be the role of MoT in a ▪ Re-affirm role of MoT as the coordinator, ▪ Provide strong coordination to the sector
sector with independent regulators and gate keeper and ultimate authority for the while maximizing value of investments
asset owners/operators? transport sector through optimum capacity allocation across
modes
F In a system with separate regulatory ▪ Maintain PTA current structure while ▪ Minimum disruption to the sector to ensure
entities, what is the appropriate mandate clarifying its mandate according to the sufficient time is given to build-up maturity
for PTA? recently issues Royal decree and capabilities within PTA

…implying fundamental shifts across the sector’s value chain
From… …To
▪ Ad-hoc strategy setting effort with limited ▪ Coordinated and centralized strategy setting effort
Strategy consultation among sector players and external combining all modes’ aspirations and stakeholders’
development stakeholders needs, and orchestrated by a central body
▪ Mode-driven master planning efforts with no ▪ Centrally driven, integrated master planning with
Integrated holistic and integrated sector view coordinated inputs from different modes1 and required
planning tradeoffs effectively managed
▪ New assets deployment requests, often directed ▪ Strong, central entity with gate-keeping authority that
Sector to the mode, based on external stakeholders receives, filters, prioritizes and manage stakeholders’
gatekeeping individual needs requests in conjunction with individual modes
▪ Limited separation between asset ownership and ▪ Assets ownership and regulation clearly separated, with
Asset regulation across different modes mode regulators having defined responsibilities and
ownership authority independent from asset ownership and
operations
▪ Assets operated by asset owners or by private ▪ Assets operated by independent and specialized
Asset operators with suboptimal contracts to drive players, contracted under optimal regimes that drive
operations profitability and operational excellence operational excellence and profitability (whenever
possible)
1 And their stakeholders

4. This will result in a new sector topology with improved roles and responsibilities
across key players…
Detailed next Chairmanship/Board representation Regulation Shareholding
MoT
PIF/share- ▪ MoT sets sector direction/strategy and overall capital deployment plan
holders ▪ MoT acts as sector’s gatekeeper
▪ Each regulator is an independent body that reports to the MoT (through
Mode chairmanship of its board)
regulators Asset Co(s) ▪ Asset companies (owners) are regulated by respective mode regulator
▪ Independent asset owners that develop, maintain and operate (directly or through
Roads Roads Co. concessions) infrastructure within each mode
▪ MoT sits on the board of asset companies (owners) and has strong veto powers over
Air Airport Co(s)
capital deployment decisions and could support lobbying vis-à-vis MoF to secure
additional required funds
Ports Port Co(s)
▪ The public transport regulator regulates all public and private transport
Rail SAR
Core beliefs
Maritime transport ▪ The value of having independent regulators capable of effectively challenging central
direction and providing some level of guidance to the mode is critical
Public transport
▪ Capabilities should be retained at the mode level, and it is hence easier and faster
for the mode regulators to secure them at (and sometimes above) market rate
PTA
▪ It will be costly to challenge the existing power play at the level of the regulators,
leading to important delays/setbacks in impact assurance

4. …and a new MoT with upgraded roles, responsibilities and key functions
Strategy & Planning Delivery and support Asset Deployment & Investment Innovation and New Ventures
• Strategy; Develops integrated • VRO (oversight & delivery); • Stage gate/gatekeeping; • Energy & environment;
sector strategy Oversees/supports strategy Oversees capital deployment Oversees compliance with, and
• Master planning; Consolidates deployment across regulators plans across asset companies, supports development of
sector masterplans and capital and manages interfaces with reviews/homogenizes key energy and environment
deployment plans them investment decisions outside preservation regulations
• Internal PMO: Manages and the masterplan and helps • Transport safety; Oversees
• Statistics and DS unit; manage external/ad-hoc
Develops tools and data to monitors MoT specific projects compliance with, and supports
requests for transport development of transport
support planning and strategy • Government relations: infrastructure
manages the interfaces and safety regulations
• Strategic partnerships; • Board representation;
Develops and manages interactions with key public • New tech/future proofing;
sector counterparts Manages MoT representation Develops the strategic units
strategic partnerships with across various asset co boards
local and international players that will support the
• PPP/PSP/alt. funding; development/ deployment of
Manages and supports sector technologies and tools that will
PPP agenda and supports enable those strategic thrusts
funding provision when
needed
352
Contents

▪ NTS 2030
– Approach
– Transport Model Base Case
354
General National Transport Masterplan – approach
Completed in current phase
To be completed in next phase
Identification and prioritization of main centers of socio-economic activity (nodes) and transport
corridors
Development of a socio-economic model to forecast future demand for mobility of goods and
people at each node
Definition of current & projected demand, and O/D matrices across different transport modes (for
different demand scenarios), including main interfaces
Definition of the optimum NTS 2030 end-state transport infrastructure footprint for the Kingdom
Analysis of existing transport modes’ interfaces to ensure proper interconnection between different
modes
Redefinition of current capital deployment plans through prioritization of infrastructure projects to

satisfy demand of mobility for goods and people
355
8-step approach to develop the general national Completed in current phase
transport master-plan To be completed in next phase
1 2 3
Socio-economic Current network

Zoning system ▪ Collect
model model
actual/real
people and
▪ Define nodes ▪ Gather socio-economic ▪ Input current transport network 4 goods traffic
▪ Group nodes into data related to goods and into modelling software data
transport zones people ▪ Input current socio-economic
Current ▪ Account for all
▪ Define main transport ▪ Develop socioeconomic data into the modelling software transport modes
demand
corridors models and forecasts
(real) ▪ Run model to
assess current
Reiterate/ syndicate demand vis-à-vis
network supply
8 7 6
▪ Calibrate model
5 outputs based
on the actual
Projects financial Future demand
Interface analysis Future network data collected
assessment (software)
▪ Define high level budget ▪ Identify and analyze major ▪ Conduct capacity gap ▪ Set strategic outputs on the basis of
estimate for selected intermodal nodes analysis on current network country overall objectives (Vision
projects ▪ Assess current and future ▪ Analyse sector specific 2030), and sectors specific strategies
▪ Define capital deployment needs for intermodal strategies to harmonize ▪ Set time horizon for the forecast and
plan hubs/links initiatives across modes analysis
▪ Run model for future state ▪ Input forecasted socio-economic data
▪ Define and prioritize for transport zones
interventions/ projects to ▪ Conduct interviews to define preferred
bridge gap and satisfy future transport modes
demand
SOURCE: Expert interviews, team analysis 356
Masterplan – Steps description (1/3)
Description Data Collected

▪ Divide the country into transport zones by grouping centers of ▪ Comprehensive KSA map
activities or nodes based on geographic location, importance and ▪ Governorates boundaries (transport zones)
Zoning system type of activity ▪ Main transport corridors
1 ▪ Define main transport corridors that go between the zones (consider ▪ Existing transport network (ports, railway, airports, roads)
future development and socio-economic activities during zoning)
▪ For people, compile population’s current and forecasted social and ▪ For each governorate, get current:
economic characteristics in each zone/municipality (e.g., area, land – Land use – Trades: internal
use, population, average income, unemployment) – Population and external
Socio- ▪ For freight, compile major economic activity centers, assess current – Age groups – GDP (national and
2 economic production and forecast future, assess current cost of transport – Households main cities)
model Main economic
– Average household size –
– Employment activities per region
▪ Input current transport network supply (e.g., roads capacities, ▪ List of roads
Current airports capacities) into transport software (PTV Visum) ▪ Railway network
network ▪ Input the current socio-economic variables into the traffic modelling ▪ List of airports
3 model1 software ▪ List of ports (including dryports)
▪ Capacity for roads, ports, airports and railways
▪ Existing transport link for each mode
1 Modeling and transport software expert is needed; in freight, modeling can be done manually 2 Not exhaustive
SOURCE : Expert interviews, team analysis 357

▪ Collect data on actual traffic flow (e.g., classified counting for roads and
▪ Volume of traffic on main roads (by category)
Current converting to PCU1, counting tickets for rail passengers) ▪ Volume of ports activity for each port
demand (real) ▪ Differentiate between people and goods traffic (e.g., goods have different ▪ Type of port activity for each port
modes, measurement units, routes) ▪ Air volume in each airport: goods and people
▪ Input choice of desired modes; that can be concluded through academic ▪ Volume for rail (goods and people)
papers, previous studies, surveys/ interviews and socio-economic modelling ▪ Type of rail activity (for goods)
(e.g., usage of personal cars, usage of rail for goods)
4
▪ Run the model using the current socio-economic data as inputs, where the
output determines the current state and traffic load on the current network
▪ Calibrate the model where data gathered is not used all at once to cater for
more than one round of calibration
▪ Set the model time horizon ▪ For each governorate, get forecasted
Future ▪ Input forecasted socio-economic forecasts for each zone (2020-2025-2030):
demand ▪ Input choice of desired end-state modes choice (e.g., desired usage of – Land use – Employment
(software) personal cars vs. railway) based on strategic objectives and travel – Population – Vehicles registration
preferences (e.g., to minimize freight travel cost) – Age groups – Trades: internal and
5 ▪ Run the model using the projected socio-economic data as inputs, where – Households external
the output determines the future state and traffic load on the current – Average – GDP (ideally per
network household size sector)
– Income brackets – Main economic
activities per region
1 Passenger car unit 2 Not exhaustive


▪ Conduct capacity gap analysis on current network ▪ Future plans and projects for each sector
▪ Input network’s development plans and strategic initiatives based on strategies of
each authority (e.g., airport expansion plans, new roads)
Reiterate/ syndicate
▪ Determine network’s development plans and strategic initiatives based on

strategies of each authority (e.g., airport expansion plans, new roads)
Future ▪ Input expected and planned projects into the software to get the future network
6 ▪ Re-run model with planned projects and expansions to assess the future traffic
network
demand and load on the network
▪ Iterate process modifying future network assets until reaching optimum traffic
load conditions for the end-state
▪ Analyze current and future location of transport mode exchange (for goods and ▪ Existing and planned logistic interfaces
Interface people)
analysis ▪ Assess current and future needs for additional capacity or new intermodal hubs
7
and links
▪ Ensure correct transition between different modes for good and people
▪ Estimate preliminary cost (CapEx and OpEx) for new projects based on available ▪ Capital and operational costs for relevant assets
Projects historic information (e.g., average cost per Km of road/rail, airport terminal
financial expansion)
assess- ▪ Determine high level budget requirements and capital deployment plan for the
8 ment
selected time horizon
1 Not exhaustive
Contents

▪ NTS 2030
– Approach
– Transport Model Base Case
360
Role of the strategic transport model in transport masterplans
A strategic transport model is a tool enabling an assessment of changes in a transport system with respect to changes in
external factors (do nothing scenarios), future transport supply and with respect to new transport policies.
Data Modelling Planning

DEFINITION OF
IDENTIFICATION OF STRATEGIC
Socio-economic ANALYTICAL
OBJECTIVES, AND CONSTRAINTS
Data FRAMEWORK
BASE YEAR MODEL CURRENT SITUATION ANALYSIS

Strategic (Yr 2017) Transportation System
Network Data MASTERPLAN
FUTURE SCENARIO MODELS MONITORING
(+ 5 yrs, + 10 yrs, + 15 yrs) PROJECT IDENTIFICATION
Travel and Gap Analysis, Capacity Assessment,
Behavioural Data Do Nothing SWOT Analysis, Future Requirements
Do Minimum
Planned SCENARIO GENERATION AND
Developments & TECHNICAL ASSESSMENT
Do something scenarios
Projects
TOTAL IMPACT ASSESSMENT
Economic Impact PROJECT
Commercial Assessment PRIORITISATION
Environmental Impact
361
Specifics of national transport models
In contrast to urban transport models, national transport models :

• Cover far more land area within the same country
• Cover many more facilities within the same country
• Are often concerned with economic developments that extend well beyond the borders of a region,
such as national and international trade issues and trends
• Focus on intercity travel and traffic
• Incorporate long distance, multiday trips
• Cover freight transport in much greater detail
The most common fields of national transport model application include:
• Corridor planning
• Traffic and environmental impact statements
• Bypass studies
• Project level traffic forecasts
• Freight and intermodal planning
• Long-term investment studies
• Project prioritization
• Toll, pricing, or tax studies
• Intercity bus planning
362
Process of national transport model development
Base year model

Specification of Design of base Model application
Preparation phase calibration and
model use year model - Forecasting
validation
Estimation for future

Design of modelling Integration of model
Supply model development of
methodology components
Model functionalities external variables
Specification of
Data acquisition and Passenger demand Tests of model
future projects and
data gap analysis model functionalities
policies
Implementation
context Specification of Check for Modelling of
Freight demand
model quality compliance with changes in transport
model
(acceptance criteria) acceptance criteria system
363
Software tool for strategic transport modelling – PTV VISUM
Examples of applications
• Transport for London Transport
• PRISM West Midlands (UK) Network
• Various UK ‘WebTAG’ models Modelling
• Flanders Region (Belgium)
• Lyon
• Munich
• Germany, 10k zones Organizations where in use
GIS
• Dubai • DB (Germany)
• Qatar • OBB (Austria)
Public
• Beijing Demand • Swiss Rail
Transport
• +++ Modelling • Centro (UK)
Modelling
• Abu Dhabi Bus Office
• Metro de Medillin (Columbia)
• PJ (Malaysia)
• +++
364
Examples of PTV VISUM national transport models
Inter National Traffic Model

• Representing 750 million residents within European
neighbourhoods
Network Scale
• 50 100 Traffic Zones (soon: over 20 000)
• ca. 50.6 million Links
• ca. 2 Billion Daily Trips
Data Source
• HERE navigation network – continuously updated
• Travel behaviour data from MiD 2015
• Socio-economic data – updated annually, aligned with official
statistics
Demand Model
• Car and Truck traffic
• 20 trip purposes
• 50 person groups
365
Examples of PTV VISUM national transport models
National Transport Model

• Integrated passenger and freight
model
Network Scale
• 1 075 traffic analysis zones
• 4.8 mil. residents
• Extensive supply network incl. 11 000
km of public transport links
Data Source
• NAVTEX
• Local traffic studies
• RTA Transport Model (Dubai)
Passenger Demand Model
• Tour based approach
• 15 types of trip chains
• 12 person groups
366
PTV VISUM – Integrated of transport data supported by GIS
• Everything in one place • Visual analysis in seconds

• Built-in functionality for all standard • Fuse datasets with Intersect and MapMatcher
procedures • Integrated and synchronised with data model
• Multi-modal
367
PTV VISUM – Database functionalities
• Self-contained relational database • Advanced customisation of model design and

• Network objects automatically synchronised reporting via VBA and Python scripts
• Routes stored for post-assignment analysis
• Relational analysis and calculation
368
PTV VISUM – Advanced functionalities for public transport planning
• Timetable and headway based assignments

including capacity constraint
• Data model suited to external timetable sources
• Simple and complex fare models available
• Paths saved for post-assignment analysis
369
PTV VISUM – Demand modelling and matrix calibration tools
• Variety of built-in models (scripting is optional) : • Adjust matrices using a wide variety of measures
4-step ; EVA ; tour-based nested (UK WebTAG) ; • Reflect varying confidence in real world data by
Visem specifying ranges
• Matrix operations such as Fratar and gravity • Simple projection also available
model estimation
• Flexibility and extension through customized
scripting
370
PTV VISUM – Model handling and scenario management
• Create programs as procedure sequences • Create projects with a base and alternative scenarios
• Build in control loops (e.g. variable demand) • Group multiple network and demand modifications into
• Automate generation of model outputs Scenarios
• Distribute procedures between multiple computers • Distribute processes across multiple computers
• Multi-user access
• Pre-define graphical and tabular scenario comparisons
371
Key steps in transport model design
Behavioural data 3 Land use data 2 Network model 1
Home - Job Home - School Home - Shopping
70
60
50
% per hour
40
30
20
10
0
0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23
TIME
Model area
1
Traffic zones
Input
Land use Segmentation 3
Transport Model How many trips? 4
Choice
Behaviour Where? 5
Which mode? 6
Which way? 7
Output
Interrelations Traffic volumes Traffic flows
372
Transport model design - Step 1: Network model
Importing and/or editing of network objects and their Definition of types of traffic, modes and respective demand
attributes (e.g. link speed, number of lanes, etc.) segments
PrT PuT
Editing of PuT infrastructure and services
Validation of
integrated PrT
and PuT network
model
373
Transport model design - Step 2: Land use data
Specification of land use parameters at the level of zones
Definition of zoning system with

respect to natural borders, land
use data structure and model use
374
Transport model design - Step 3: Travel behaviour
Definition of demand segments with homogeneous travel behaviour characteristics
Population segments Trip purposes Transport modes Time

• local, expats • work related • car • Peak season / hour
• males, females • personal business • train • Off-peak season /
• … • leisure activities • air hour
• … • … • …
Cross-product of categorical variables and aggregation into demand segments
Demand segments (types of trips)

• local x male x work related x car x peak season
• expat x female x leisure activities x train x off-peak
• …
375
Transport model design - Step 4: Trip generation
Objective
• Estimate number of trips generated and attracted by each zone
Key assumption
• Demand for travelling is driven by human need to participate on out-of-home activities.
Inputs Trip generation model Output

• Demand segments • Dependence of trip • Number of trips
• Zoning structure, frequency on generated in each
incl. population and demand segment zone by each
land use attributes characteristics and demand segment
• Information on values of external • Indicator of zone
travel behaviour for factors influencing attractivity to each
?
each demand demand for travel demand segment
segment,
• Values of external
factors influencing
trip rates, e.g. GDP
per capita
376
Transport model design - Step 5: Trip distribution
Objective
• Estimate spatial distribution (destinations) of trips generated by each zone
Key assumption
• People want to perform their activities in the most attractive destinations with minimal
travel costs 40 min
20 min
• Number of trips • Spread of traffic • Set of matrices (one 15 min
generated in each produced by zones for each demand
zone by each among remaining segment) with
demand segment zones based on number of trips
• Indicator of zone zone attractivities, among zones
attractivity to each costs of travelling
?
demand segment and travel
• Information on preferences within
travel behaviour for demand segments
each demand
segment
• Costs of travelling
among zones
377
Transport model design - Step 6: Mode choice
Objective
• Split demand between transport modes used to move among origin and destination
zones
Key assumption 30 min
• People tend to minimize perceived costs of travelling to destination zones
40 min
• Set of matrices (one • Split of traffic • Set of origin-
for each demand among origin and destination matrices
segment) with destination zones with number of trips
number of trips based on zone among zones
among zones costs of traveling specific for each
Travel preferences and travel demand segment
?
•
of each demand preferences within and mode
segment demand segments
• Travel costs
associated to each
mode connecting
origin and
destination zones
378
Transport model design - Step 7: Traffic assignment
Objective
• Estimate flows on sets of links (routes) connecting each origin-destination pair 30 min
Key assumption 90 SAR
• People tend to choose the route with the lowest perceived costs of travelling to the
destination zone by selected mode
40 min
70 SAR
• Set of mode- • For each origin • Flows on transport
specific matrices destination pair network (links,
with number of trips calculates routes nodes, turns, …)
among zones preferred by each
• Travel preferences demand segment
of each demand
?
segment
• Travel costs
associated with
each route
connecting origin
and destination
zones
379
Specifics of KSA National Strategic Transport Model
• Population is concentrated in settlements with clear

borders spread throughout the whole country (except the
southern part of Al-Ahsa region)
• Overwhelming majority of inter-city trips exceed
distances classed as long-distance travel
• Significant reliance of passenger travel on road and air
transport
• Most incoming freight flows pass through few major ports
• Seasonal peak travel demand (Hajj)
Challenges
• Heterogeneous sources of transport supply and land use
data unified through fusion with external data sources
(HERE maps, GPS floating car data)
• Missing public transport supply data in GIS format
• Local specifics of travel behaviour required adaptation
and local validation of travel demand models from GCC
region
380
Classification and purpose of KSA National Strategic Transport Model
Kingdom of Saudi Arabia National Strategic Transport Model
Hierarchy of transport models by purpose and level of spatial Strategic transport model designed to assess change of transport demand
detail and traffic flows with respect to :
• Changes in economic and social factors
• Rehabilitation of existing infrastructure and/or opening of new
infrastructure
Passenger travel
Strategic Transport Model
(VISUM)
• Improvement of public transport services on current infrastructure
• Implementation of new transport policy measures, incl. different prices for
the range of services offered by railway and air transport
• Evolution of the level of motorization caused by different levels of taxation
or legal requirements
Cordon Area Model (VISUM) • Infrastructure capacity analysis in Hajj season with focus on infrastructure
in areas around Mecca, Medina, Jeddah and Taif
• Development of economic factors (sectors of production and
consumption), especially the influence of opening of new industrial areas,
warehousing, mines
Freight transport
Changes in port attractivity (time, reliability) on through traffic
Microsimulation Model (VISSIM)
•
• New freight services on existing infrastructure (e.g. road train)
• Development of multimodal transport terminals
• Changes in the structure of the fleet of trucks for international and transit
Local Area Model (VISTRO) cargo
• Changes in cross border procedures (costs, waiting periods)
• Improvement in interconnectivity of multimodal networks
381
KSA NSTM – PTV VISUM as data integration platform
Rail and Air

network and
Services
Socio-Economic In Car Navigation
& Land use data System/Taxi/Bus/Truck
GPS - Speed Data
Network models
(iHere©, MoT
database)
Travel Demand Parameters
Surveys Previously Undertaken (Traffic

Logistics & Freight Data, Counts, PuT Tickets) and Local
Import-Export Data Academic Papers incl. Stated
Preferences, Roadside Interviews, etc.
382
Framework of KSA NSTM - Integrated passenger and freight model
MODEL INPUTS
Intermodal network Detailed spatial segmentation Localised travel behavior
• Roads (subset of 3.9 mil. links) • Level of governorates • Reference to regional
• Railways (all links and services) • Additional refining of zones with surveys and models
• Airports (national and heterogeneous land use • Demand segmentation
international) • Major ports and industrial areas as specific for KSA
• Ports (all major) specific zones • Focus on religious tourism
• Long distance public transport
MODELLING PROCESS Supply model Land use model Passenger demand model
• Integrated road, rail, air • Sources and attractors of • All long distance travel
Macroeconomic forecasts
and water infrastructure passenger and freight • Business, private, commercial
• Demographic changes • Existing & planned traffic • By car, rail, bus, air and ferry
• Economic growth
• Changes in input costs Freight demand model
• Trends in choice behavior Assignment
• OD relations by commodity type
• Integrated passenger and freight assignment • Mode choice with inter- and
• Traffic assigned to routes with lowest perceived costs multimodal interactions
MODEL OUTPUTS • Actual and forecasted flows on network objects (24h model)
• Ready for accessibility analysis
• Passenger and freight model database ready for forecasting and scenario testing
• Testing of known and planned infrastructure changes
• Integrated freight and passenger traffic forecasting
• User friendly software environment with professional support
383
Definition of model area
Core model area Kingdom of Saudi Arabia Extended model area Surrounding countries
• Area defines scope of • Areas interacting with
detailed analysis of model area
model outputs • Network model limited to
• Contains detailed links influencing flows
network model within KSA
• Spatial disaggregation • Spatial disaggregation into
into transport analysis transport analysis zones at
zones at the level of the level of countries
governorates
Rest of the World

• Virtual zones representing major
origins and destinations of freight
flows from and to GCC region
• Airports and ports serve as points
of entry of passenger traffic flows
from regions beyond extended
model areas (rest of the World)
384
Definition of selected modelling terms
Skim matrices
• Describe properties of each relation from origin to destination zone
• Typical example is the mean travel time from zone A to zone B, calculated from travel times
of all paths found
Impedance
• Function representing effort related to the movement on or among network objects (e.g.
on links or among zones)
• Effort is usually measured in time and costs, but subjective criteria (comfort, attractivity, etc.)
can be added as well
• Impedance function converts various components of travel effort to one number (e.g. time)
SOURCE : Source 385

Detail of Passenger Model Framework
Network model 4-step passenger demand model Legend:
Model component
Trip generation Output
Output of component
Link costs for each Nr. of produced and
transport system attracted trips for each
Trip rate model
demand segment and Output analysis
zone
Zones and land use Trip distribution Output
Nr. of trips for each

Gravitation model demand segment and
Zone productions pair of zones
and attractivity
Mode choice Output
Travel behavior demand segment,
Logit model
mode and pair of
zones
Homogeneous
demand segments Assignment Output
and their travel Equilibrium (PrT) Nr. of trips on each
preferences Headway b. (PuT) network link
386
Passenger Model Framework
Model component
Output of component
Trip rate model
zone

and attractivity
Mode choice Output
Logit model
mode and pair of
zones
Homogeneous
387
Network model: Basic description
Network model contains transport supply represented by private, public and freight transport infrastructure and all services relevant
to long distance travel within KSA and from/to external zones
Network model is composed of multimodal network with 8 transport systems relevant for long-distance passenger and freight traffic :
• Car, Taxi (PrT)
• Truck, Rail, Maritime (freight)
• Bus, Ferry, Train, Air (PuT)
• PuT access links
Road network Rail network Air infrastructure Long distance buses
388
Network model: Road network data and setup
Network and link classification : Road network implemented in PTV Visum

 Based on detailed external database of road network in
KSA (HERE data) with 3.8 mil. links
 Fusion with official data provided by KSA Ministry of
Transport
 Network shape was validated using satellite pictures
 Final network reduced to the level relevant for long
distance travel (cca. 0.5 mil. links)
Connections to external zones (around KSA)

 Major links connecting KSA with surrounding countries
are included in the model
 Setup of link parameters done according to satellite
pictures
Model follows link classification structure provided by MoT

 Single carriageways
 Dual carriageways
 Expressways
389
Link speed
• Defines highest (free flow) speed allowed on each link for each type of vehicle
• Basic setup according to official speed limits by type of road and environment (urban / rural area)
• Validation and adjustment of basic setup with data obtained from external large scale survey using floating
car data (8.5 million trips)
• Local adjustments according to satellite pictures and local research
Link capacity
• Defines theoretical daily capacity of link
• Value derived from Highway Capacity Manual*
• Final daily capacity = HCM Capacity per hour and per lane x number of lanes x hourly / daily ratio
• Hourly / daily ratio is based on Saudi traffic counts analysis and equal to 15.
Volume delay function

• VD functions are based on generally applied Bureau of Public Roads (now FHWA) formula
• Parameters a and b of the formula are based on HCM recommendations
* Highway Capacity Manual. "HCM2010." Transportation Research Board, National Research Council, Washington, DC (2010). 390
General setup of link attributes in KSA NSTM 1/3

NUM of HCM2000_CAPACITY RATIO PEAK HOUR/DAY VD FUNCTION BPR_B
LINK TYPE ID NAME CAPACITY (veh/day) Speed (km/h) VD FUNCTION BPR_A Coeff
LANES (veh/hour/lane) TRAFFIC Coeff
7 Express Roads 4 lanes 120 4 126000 120km/h 2100 15 0.39 6.3
8 Express Roads 3 lanes 120 3 94500 120km/h 2100 15 0.39 6.3
9 Express Roads 2 lane 120 2 63000 120km/h 2100 15 0.39 6.3
10 Dual CarriageWay Roads 3 lanes 140 3 85500 140km/h 1900 15 0.39 6.3
11 Dual CarriageWay Roads 2 lanes 140 2 57000 140km/h 1900 15 0,39 6,3
12 Dual CarriageWay Roads 1 lane 140 1 28500 140km/h 1900 15 0,39 6,3
15 Dual CarriageWay Roads 1 lane 120 1 28500 120km/h 1900 15 0,39 6,3
16 Ramp 3 lanes 100 3 85500 100km/h 1900 15 0,39 6,3
17 Ramp 2 lanes 100 2 57000 100km/h 1900 15 0,09 6
18 Ramp 1 lane 100 1 28500 100km/h 1900 15 0,09 6
19 Ramp 3 lanes 70 3 76500 70km/h 1700 15 0,07 6
20 Ramp 2 lanes 70 2 51000 70km/h 1700 15 0,07 6
21 Ramp 1 lane 70 1 25500 70km/h 1700 15 0,07 6
25 Foreign Motorways 2 lanes 100 1 30000 100km/h 2000 15 0,25 9
26 Foreign Motorways 1 lane 100 1 30000 100km/h 2000 15 0,25 9
30 Single CarriageWay Rural Road 3 lanes 90 3 54000 90km/h 1200 15 0,34 4
391

32 Single CarriageWay Rural Road 1 lane 90 1 18000 90km/h 1200 15 0,34 4
35 Foreign Roads 2 lanes 80 1 18000 80km/h 1200 15 0,39 6,3
36 Foreign Roads 1 lane 80 1 18000 80km/h 1200 15 0,34 4
40 Express Urban Road 3 lanes 80 3 94500 80km/h 2100 15 0,1 10
42 Express Urban Road 1 lane 80 1 31500 80km/h 2100 15 0,1 10
43 Dual CarriageWay Urban Road 3 lanes 80 3 81000 80km/h 1800 15 0,07 6
45 Dual CarriageWay Urban Road 1 lane 80 1 27000 80km/h 1800 15 0,07 6
50 Single CarriageWay Urban Road 3 lanes 60 3 54000 60km/h 1200 15 1 5
52 Single CarriageWay Urban Road 1 lane 60 1 18000 60km/h 1200 15 1 5
32 Single CarriageWay Rural Road 1 lane 90 1 18000 90km/h 1200 15 0,34 4
35 Foreign Roads 2 lanes 80 1 18000 80km/h 1200 15 0,39 6,3
36 Foreign Roads 1 lane 80 1 18000 80km/h 1200 15 0,34 4
392

42 Express Urban Road 1 lane 80 1 31500 80km/h 2100 15 0,1 10
45 Dual CarriageWay Urban Road 1 lane 80 1 27000 80km/h 1800 15 0,07 6
52 Single CarriageWay Urban Road 1 lane 60 1 18000 60km/h 1200 15 1 5
393
Network model: Road network model outputs
Link costs and impedances Volume dependent link travel time

• For each link, costs and impedances specific for each mode • Implemented volume delay functions ensure that link travel
(car, taxi, truck) are calculated time changes with respect to link capacity and assigned flow
• E.g. free flow travel time, travel time after assignment,
general costs (impedance), toll, etc. BPR curves
Occupation rate
40% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140%
01
02
02
03
Loaded / unloaded travel time

03
04
04
05
05
06
06
07
07
Express way Express urban roads Major urban rorads

Minor urban rorads Minor rural roads
394
Network model: Road network model functionalities
Shortest path calculation Accessibility analysis

• Costs of travelling between two points / zones in the • Plot of isochrones showing time needed to access a certain
network object in the network according to link cost attributes
• According to link cost attributes
Shortest Path example between 2 nodes Private transport isochrone example from a node
395
Network model: Road network model quality assessment
Road links with Express way from

Express way from MoT
MoT
Assessment of road classification
• Network data from the HERE network were
adjusted and cross-validated with data
provided by the Ministry of Transport (in light
blue on pictures)
• Network model respects road network
classification present in MoT database
• Network is a reasonable fit
Road links with Dual Carriageway
– Expressways are on top Dual Carriageway from MoT
from MoT
– Dual carriageways are below
• MoT links under construction are not included
in the base year model
• Additional verification/validation performed
through aerial photographs
SOURCE : KSA transport model 396

Summary of link characteristics by link type 1/2
Number of
Link Type Name Capacity Speed Number of links Length (km)
lanes
7 Express Roads 4 lanes 120 4 126000 120km/h 531 413
9 Express Roads 2 lane 120 2 63000 120km/h 133 235
11 Dual CarriageWay Roads 2 lanes 140 2 57000 140km/h 50 16
12 Dual CarriageWay Roads 1 lane 140 1 28500 140km/h 30 123
15 Dual CarriageWay Roads 1 lane 120 1 28500 120km/h 6726 3592
16 Ramp 3 lanes 100 3 85500 100km/h 2 1
17 Ramp 2 lanes 100 2 57000 100km/h 683 233
18 Ramp 1 lane 100 1 28500 100km/h 2814 829
19 Ramp 3 lanes 70 3 76500 70km/h 29 3
20 Ramp 2 lanes 70 2 51000 70km/h 1465 340
21 Ramp 1 lane 70 1 25500 70km/h 2413 449
30 Single CarriageWay Rural Road 3 lanes 90 3 54000 90km/h 64 2
9 Express Roads 2 lane 120 2 63000 120km/h 133 235
397
Summary of link characteristics by link type 2/2
Number of
Link Type Name Capacity Speed Number of links Length (km)
lanes
31 Single CarriageWay Rural Road 2 lanes 90 2 36000 90km/h 5087 888
32 Single CarriageWay Rural Road 1 lane 90 1 18000 90km/h 238267 104097
40 Express Urban Road 3 lanes 80 3 94500 80km/h 2309 549
41 Express Urban Road 2 lanes 80 2 63000 80km/h 4918 1287
42 Express Urban Road 1 lane 80 1 31500 80km/h 149 46
43 Dual CarriageWay Urban Road 3 lanes 80 3 81000 80km/h 6350 764
44 Dual CarriageWay Urban Road 2 lanes 80 2 54000 80km/h 61977 6688
45 Dual CarriageWay Urban Road 1 lane 80 1 27000 80km/h 1065 109
50 Single CarriageWay Urban Road 3 lanes 60 3 54000 60km/h 1172 78
51 Single CarriageWay Urban Road 2 lanes 60 2 36000 60km/h 14825 1128
52 Single CarriageWay Urban Road 1 lane 60 1 18000 60km/h 60709 4775
398
Number of lanes Number of lanes

• Number of lanes is a key input to
the calculation of link capacity
• Number of lanes in HERE data
was cross-checked with values in
MoT road network database and
with satellite pictures
399
Road link capacity Capacities on links

• Capacity is used in volume delay functions to
determine travel time
• Capacity per lane is based on Highway Capacity
Manual
• Values of link capacity range from 18 000 to 126
000 veh./day
• Highest capacities are on 4 lanes expressways
• Values of link capacities are consistent with
number of lanes
400
Speed Speed limits

• Speed is used in volume delay functions to
determine travel time 1
• Setup of speed is based on HERE data and
cross-validated using MoT road network data
and data from floating cars
• The setup of average speed is consistent with
road hierarchy. The average speed is the 1
highest on expressways and dual
carriageways. Average speed is the lowest on 2
links in urban areas.
Minimum Maximum
Link Main Type
Speed Speed
Express Roads 120 km/h 120 km/h 2

Dual CarriageWay
120 km/h 140 km/h
Roads
Single CarriageWay 90 km/h 90 km/h

Ramps 70 km/h 100 km/h
SOURCE : KSA transport model, HERE, MoT 401
Skim matrices analysis - Network distance between pairs of zones Distribution of network distance among zone pairs
• Most relations are between 500 and 1 500 km 35%
• Values are consistent with the size of KSA(1 800 km from north to 30%
south) 25%
20%
• Less than 5% of relations are above 2 000 km. Most of them are 15%
relations to external zones. 10%
05%
00%
Skim matrices analysis – Travel time and speed
• Reasonable travel time for car trips.
• Consistent speed according to the speed limits in the network.
• Car operating cost are proportional to distance. The rate is 0,366
SAR/km according to “The Responsiveness of Fuel Demand to
Gasoline Price in Passenger Transport”.
Distribution of travel speed among zone pairs
Distribution of travel time among zone pairs 45%
50% 40%
35%
40% 30%
25%
30% 20%
15%
20% 10%
05%
10%
00%
0%
]0h;1h] ]1h;5h] ]5h;10h] ]10h;20h] ]20h;30h] More than 30
h
402
Ratio of link distances to direct distances Distribution of ratio between network and
• This validation test identifies zone pairs set up with direct distance
extremely low or high distances
100% 93%
• Most of the relations have an expected ratio between
90%
1 and 1,5
80%
• No relation with a ratio less than 1
70%
• Few relations with a relatively high ratio (more than 2):
60%
– Mostly short distance relations. Missing local
network leads to longer trips. Influence on model 50%
outputs is negligible 40%
– Relations with external zones (for example with 30%
Port Salalah) 20%
Analysis of ratio of link distances to direct distances 10% 04%
00% 01% 01%
shows high level of consistency with assessment criteria. 00%
Less than 1 ]1;1,5] ]1,5;1,75] ]1,75;2] More than
2
SOURCE : Source 403

Network model: Public transport network data and setup
Rail network Train passenger line

• 450 km of existing railway links for passengers (in each
direction)
• All stations with regular train service for passenger
lines (1 line opened for passengers : Riyadh –
Dammam)
• HERE database and local adjustments according to
webpages of train service operators
• Future lines according to the Saudi Railways Master
Plan1 Airports location
Airports
• 150 direct connections among 27 existing airports
(2 airports not currently used for commercial activities)
• 10 planned airports implemented for future
connections
• All airports are implemented as specific zones
1 North-South passenger rail is considered future plan as base case refer to 2016. Line is coded and will be used for scenario analysis with proper assignment
404
Long distance bus network Ferry-boat connection Bus lines

• Model includes all stops with long
distance bus services (provided by
SAPTCO)
• In total 39 150 km of road links used by
279 bus lines
Ferries
• Passenger transport to Farasan island
• Ferry line with passenger sea transport
services inserted as specific link (ferry link
type) opened for cars, buses, taxis and
trucks
• Speed of 5 km/h represents low service
frequency and travel time
405
Stop points for public transport

• A stop point represents the actual location where a public service stops : an airport, a train station, a bus stop…
• Stops are located according to the following resources :
– Innovata via DiioMi and HERE for the airport
– Data provided by Saptco for the buses
– Data from SAR and SRO website for the train lines
Public transport stop points

• Stop points are grouped inside one stop in order to allow transfer between lines and transport systems (e.g. between bus and train)
• Transfer times are calculated to represent a transfer made by taxi or urban public transport (30 km/h of travel speed) inside the cities
(minimum transfer time is set to 15 min)
• Additional fixed transfer time for airports set to
– 2 hours when arriving to the airport
– 1 hour when leaving the airport
Relation to zones and connectors

• All zones are connected through a specific public transport connector to at least one stop
• Distance is a choice criteria for zone connection to public transport zones
– The bus stop has to be inside the zone perimeter to be connected
– 40 km for train stations
– 70 km for airports
406
Stop points of Riyadh Stop Transfer time matrix example on a stop
407
Network model: Public transport services data and setup
Services on public transport lines Time profile of the train passenger line
• Public transport lines define connection between stops with regular
service for each transport system (plane, bus, train)
• Each line possesses a travel time according to the data provided or
according to PuT operators’ websites
• Each line route contains information on service frequency
– Daily number of services in the case of trains
– Weekly number of services in the case of planes and long
distance buses Fare value and distance between 4 airports
• The sources of the data for routing, travel time and frequency are:
– Innovata via DiioMi for the planes connections and travel time
– Data provided by SAPTCO (long distance buses)
– Data from SAR and SRO website (trains)
Fares
• Fare systems are specific for each transport system (planes, trains,
buses).
• The fare (in SAR) is related to the distance. Linear regression
model is estimated using fare data from above mentioned
resources:
– Fare = 0.1656 x Distance + 0.00 for long distance bus
– Fare = 0.5200 x Distance + 0.00 for planes
– Fare = 0.3499 x Distance + 12.07 for train
SOURCE : KSA transport model, SAPTCO, SAR, SRO 408

Network model: Public transport outputs
Line costs and impedances Number of trips for time intervals (in minutes)
• For each line, costs and impedances specific
for each transport system (bus, train, plane)
are calculated
• E.g. travel time, number of transfers, total
costs, general costs (impedance), fare, etc.
Impedance function for public transport
409
Network model: Public transport functionalities
Cheapest path calculation Accessibility analysis

• Costs of travelling between two points / zones in the network • Accessibility analysis of PuT infrastructure enables
• Calculated according to fare cost attributes identification of accessibility gaps
• Sensitivity to changes in fare • Possible to plot isochrones showing time needed to access
• Sensitivity to improvements in infrastructure and services certain objects in the network according costs
• Sensitivity to improvements in urban transport (transfer times) • Analysis of changes of accessibility with introduction of new
services
Connected zones to long distance buses Access time to airport, by car
410
Network model: Multimodal network functionalities
Accessibility of the zones

• Travel time and travel costs of travelling among zones by certain mode can be displayed in matrix format
Average travel time between governorates (for the 15th first, time in minutes)
Average travel times between governorates

(for the first 15 governorates, time in minutes)
SOURCE : KSA transport model 411

Network model: Public transport supply quality assessment
Bus stop points Bus stop points

• A stop point represents the actual
location of bus boarding or
alighting
• Data were provided by SAPTCO
• 272 bus stop points are coded in
the model
• Model covers all stops provided by
SAPTCO
SOURCE : KSA transport model, SAPTCO 412

Distribution of public transport lines according the

Public transport frequency
number of services per week
• Frequency of services is integrated into the calculation of shortest path in 140 122
public transport assignment step 120
100 86
• Data on bus service frequency are provided by SAPTCO 80 64 63
60
• Line routes with highest frequencies have been checked against available data 40 24 24 19
11
• Values implemented in the model are consistent with data available on 20 8 8
1 1
0
SAPTCO webpage
[20 services;50 services[
More than 100 services
More than 100 services


$LINE:NAME TSYSCODE FREQ_W CLASS_FREQW
RUH - JED Air 259 More than 100 services
RUH - DMM Air 104 More than 100 services
RUH - AHB Air 117 More than 100 services
JED - RUH Air 254 More than 100 services
JED - DMM Air 107 More than 100 services
DMM - RUH Air 103 More than 100 services
DMM - JED Air 106 More than 100 services
AHB - RUH Air 118 More than 100 services Air Bus Train
$LINE:NAME TSYSCODE FREQ_W CLASS_FREQW

Riyadh - Dammam Bus 140 More than 100 services
King Fahad Airport - Dammam Station Bus 140 More than 100 services
On line data = 20 Dammam Station - King Fahd Airport Bus 140 More than 100 services
departures per day, Dammam - Riyadh Bus 140 More than 100 services
King Fahd Airport - Khobar Bus 133 More than 100 services
hence 140 per week Khobar - King Fahd Airport Bus 133 More than 100 services
Madinah - Al-Haram Al-Makki Bus 119 More than 100 services
Jeddah - Riyadh Bus 112 More than 100 services
Al-Haram Al-Makki - Medina Bus 112 More than 100 services
Riyadh - Jeddah Bus 105 More than 100 services
Madinah - Jeddah Bus 105 More than 100 services
SOURCE: KSA transport model, SAPTCO 413
Validation of routes among selected pairs of zones

• In-vehicle time, transfers and fares are key attributes of PuT supply.
• Figures found in the table are an average taking into account the split of demand between all PuT modes available. For example, figures between
Riyadh and Dammam also include bus and train services.
• Fare systems are set for each transport system (planes, trains, buses). The value of fare is in SAR.
• The fare is related to the distance and is based on ticket prices, estimated by linear regression model.
• In-vehicle travel time seems reasonable, considering modes available for each zone-pair. Between Abha and Al Qahma, the fare is low as there is no
direct air connection.
Characteristics of routes Selected OD pairs
Origin zone Destination zone Destination zone In veh. travel time Transfer time
Origin zone name Number of transfer Fare (SAR)
number number name (hours) (minutes)
10010201 Riyadh_1 60620202 Abha_2 1,4 0 0,0 444,3

10010201 Riyadh_1 60620201 Al Qahma_1 4,3 2 15,0 471,2
10010201 Riyadh_1 50510201 Dammam_1 2,1 0 0,0 183,2
60620202 Abha_2 10010201 Riyadh_1 1,6 0 0,0 444,3
60620202 Abha_2 60620201 Al Qahma_1 2,5 1 3,8 22,9
60620202 Abha_2 50510201 Dammam_1 1,8 0 0,0 608,8
60620201 Al Qahma_1 10010201 Riyadh_1 4,6 2 17,8 471,5
60620201 Al Qahma_1 60620202 Abha_2 2,5 1 15,5 23,1
60620201 Al Qahma_1 50510201 Dammam_1 4,8 2 26,5 635,9
50510201 Dammam_1 10010201 Riyadh_1 1,5 0 0,0 183,2
50510201 Dammam_1 60620202 Abha_2 1,9 0 0,0 608,8
414
Model component
Output of component
Trip rate model
zone

and attractivity
Mode choice Output
Logit model
mode and pair of
zones
Homogeneous
415
Zones and Land Use: Zones data and setup
Zones
• Zones are aggregates of origins and destinations of all trips and define :
– Level of detail of transport analysis
– Dimensions of all matrices in the model
Zones structure
• Each zone contains centroid located in the zone centre of gravity
• Most zones are defined by boundaries
• Shape of zone boundaries is based on
– HERE and mapsofworld.com data (internal zones)
– Aerial maps (external zones and external ports)
– Annual Report Saudi Custom (34th edition issued in May 2016) (border crossing)
Zones classification
• The classification allows rapid identification of zones and aggregation of contained values
• Some zone attributes are specific for certain zone classes
• 10 classes are present inside the model
– 8 classes for internal zones
– 2 classes for external zones
416
Zones classification
Num type Name Class Class name No. of zones

0 Passengers zones 2 Administrative 169
1 External 3 External zones 32
Border
99 12
Crossing
2 Freight zones 4 Mine 12
5 Agricultural 36
6 Industrial 119
Freight
7 33
terminals
Transport
3 8 Sea ports 12
infrastructure
9 Airports 41
4 Military 10 Military 17
417
Zones numbers and names:

• ID number of zone is set according to its administrative and geographic
position. It is composed of 8 or 9 digits.
• Zone name
– For the administrative zones - combination of corresponding
governorate and number (in cases when the governorate level zone
is split to more sub-zones)
– For non-administrative zones - the name with description of zone
function (e.g. Medina Train Station) Sample of connectors
implementations
Connectors:
• Connect zones with the network to convey passenger and freight flows
• Setup of transport systems allowed on connectors enables control of :
• Flows of demand for public transport
• Flows of freight or private transport
• Zones of type 3 are connected to their specific node representing the
stop point
• Zones are connected to the closest node allowing access to all other
zones of the network
418
Population data: Hajj traveller at international gateways:

• Number of inhabitants is used to generate trips between zones • Hajj travellers are input data for passenger demand
• Population data are segmented according to the following 3 category variables: model
– Male or female • Current number of passengers per gateway serves as
– Active or not active weight factor to define the value per gateway as a ratio
– Saudi or non-Saudi (all non-Saudi considered as active) of total number
• Segment of dependent children (up to 14 years) does not enter trip generation model • Data sourced from Hajj statistics
• Data sources and data processing
– Population statistics for 2016 at regional level (GASTAT)
– Population statistics for 2010 at governorate level and statistics for settlements International traveller
with population > 5000 (GASTAT) • Number of arriving and departing travellers is an input
– Estimates of population in settlements with population < 5000 (Google maps) data in passenger demand model
– Data from 2016 are segmented to zone level spatial units using split factors • Data source from MoT statistics (Annual report 2014,
derived from 2010 governorate level data and estimates of population in small chapter 3)
settlements
Sample of processed value per zones

$ZONE:NO NAME GOV_POP_SUM POP_SPLIT_FACTOR POP_SUM_2016 Saudi-Male-Active Saudi-Male-Non_activeSaudi-Female-Active Saudi-Female-Non_active Non_Saudi-Male Non_Saudi-Female Children_0-14_years GOVERNORATE_N
606202001 Abha_1 376974 0.042740348 18043.47535 4074.995627 787.0473986 1958.956145 2648.275566 3003.653091 998.6409085 4571.906618 Abha
606202002 Abha_2 376974 0.916256824 386811.4824 87358.73041 16872.524 41995.60869 56773.06491 64391.55882 21408.6124 98011.38315 Abha
606202003 Abha_3 376974 0.041002828 17309.95522 3909.335117 755.0516162 1879.318839 2540.615406 2881.545793 958.0432301 4386.04522 Abha
607002001 Ohod Rafeedah_1 74614 0.865976894 107565.0044 25216.78053 4496.208252 12088.59916 19536.07251 10649.60886 3160.571868 32417.16318 Ohod Rafeedah
607002002 Ohod Rafeedah_2 74614 0.134023106 16647.32169 3902.680616 695.8566645 1870.894723 3023.504583 1648.189071 489.1466041 5017.049429 Ohod Rafeedah
607202001 Balqarn_1 29956 0.33382294 27571.03124 5575.645267 1370.080733 4063.162557 5027.800818 3471.474276 934.0099879 7128.857601 Balqarn
607202002 Balqarn_2 29956 0.66617706 55020.74994 11126.75769 2734.133111 8108.447198 10033.47931 6927.674064 1863.910332 14226.34823 Balqarn
606402001 Bisha_1 187200 1 230352.8522 48727.41737 9927.040597 30392.96978 40312.22729 28741.62661 8830.011749 63421.55879 Bisha
419
Zones and Land Use: Model outputs
Attributes specific for each zone Changes in zone attributes
• Population • Show the evolution of stored values (e.g. airport
• Capacity of airport capacity changes)
Zones inhabitants Capacities on airports
420
Zones and Land Use : Quality assessment
Aggregate check of population (by region)

• Population is used for trip generation and distribution
• Population is based on 2016 data provided by Ministry
• Population figures implemented in Visum are consistent
with values from 2016 data
Table ( 1 ) ( 1 ) ‫ﺟدول‬
( ‫ﻏﯾر ﺳﻌودي‬/‫اﻟﺳﻛﺎن ﺣﺳب اﻟﺟﻧس واﻟﻣﻧطﻘﺔ اﻹدارﯾﺔ واﻟﺟﻧﺳﯾﮫ ) ﺳﻌودي‬

Population by sex, Administrative Area and Nationality ( Saudi/ Non-Saudi )
Total ‫اﻟﺟﻣﻠﺔ‬ Non - Saudi ‫ﻏﯾر ﺳﻌودي‬ Saudi ‫ﺳﻌودي‬

Administrative Area ‫ﺟﻣﻠﺔ‬ ‫اﻧﺎث‬ ‫ذﻛور‬ ‫ﺟﻣﻠﺔ‬ ‫اﻧﺎث‬ ‫ذﻛور‬ ‫ﺟﻣﻠﺔ‬ ‫اﻧﺎث‬ ‫ذﻛور‬ ‫اﻟﻣﻧطﻘﺔ اﻻدارﯾﺔ‬
Total Females Males Total Females Males Total Females Males
Al-Riyadh 8002100 3267091 4735009 3422530 1062562 2359968 4579570 2204529 2375041 ‫اﻟـرﯾــــــﺎض‬
Makkah Al-
8325304 3593383 4731921 3884733 1405337 2479396 4440571 2188046 2252525 ‫ﻣﻛــﺔ اﻟﻣﻛـرﻣـﺔ‬
Mokarramah
Al-Madinah Al-
2080436 915813 1164623 727334 242038 485296 1353102 673775 679327 ‫اﻟﻣدﯾﻧﺔ اﻟﻣﻧورة‬
Monawarah
Al-Qaseem 1387996 588092 799904 396964 98891 298073 991032 489201 501831 ‫اﻟﻘﺻﯾــــــــم‬
Eastern Region 4780619 1913869 2866750 1692932 433660 1259272 3087687 1480209 1607478 ‫اﻟﺷــرﻗﯾـــــﺔ‬
Aseer 2164172 981020 1183152 444222 111668 332554 1719950 869352 850598 ‫ﻋﺳـــــــــﯾـر‬
Tabouk 890922 390667 500255 180223 45050 135173 710699 345617 365082 ‫ﺗﺑــــــــــوك‬
Hail 684619 307066 377553 155607 39953 115654 529012 267113 261899 ‫ﺣــــــــﺎﺋـل‬
Northern Borders 359235 161685 197550 73749 19771 53978 285486 141914 143572 ‫اﻟﺣدود اﻟﺷﻣﺎﻟﯾﺔ‬
Jazan 1533680 703802 829878 346396 117167 229229 1187284 586635 600649 ‫ﺟــــــــــــــﺎزان‬
Najran 569332 253868 315464 138621 39916 98705 430711 213952 216759 ‫ﻧﺟـــــــــران‬
Al-Baha 466384 217366 249018 90180 22294 67886 376204 195072 181132 ‫اﻟﺑـﺎﺣـــــــﺔ‬
Al-Jouf 497509 214622 282887 123847 30717 93130 373662 183905 189757 ‫اﻟﺟـــــــــوف‬
Total 31742308 13508344 18233964 11677338 3669024 8008314 20064970 9839320 10225650 ‫اﻟﺟﻣــــــــﻠﺔ‬
SOURCE : MoMRA, GASTAT, KSA transport model 421

Zones and Land Use : Quality assessment
Location of zones
• Location of zones derived from GIS data sources (HERE maps) was confirmed by
comparison with satellite pictures
• Aerial photographs show the consistency of land use coded in the model
SOURCE : Source 422

Model component
Output of component
Trip rate model
zone

and attractivity
Mode choice Output
Logit model
mode and pair of
zones
Homogeneous
423
Travel behaviour: Basic description
Passenger model contains all demand components that are relevant to long distance passenger travel
within KSA and from/to external zones
In Visum a passenger model consist of following components
 Model definition („Basis“)
 Person groups (population segments with similar travel behaviour)
 Activity pairs (activities in origin and destination of the trip)
 Demand strata (basic demand object that combines activity pairs with person groups)
Demand model („Basis“)
Resonable combinations
Person groups Activity pairs
Demand strata
424
Travel behaviour: Model setup
Model definition (“Basis“) Definition of model types in PTV Visum

• Two models are defined
– Standard model: national and international long distance trips
– Hajj model: International guests for Hajj
• Each model has
– a model type and
– one or more related modes
The design of two specific demand models is motivated by
• seasonality of trips - daily trips during the whole year trips (standard
model) and trips in specific time of the year (Hajj model)
• differences in the number of trips per day, trip distribution, length
and mode choice in each season
Model type:
• 4-step passenger demand model applied in both cases.
• Such approach is in line with state of the practice that ensures easy model handling and minimises data requirements
Modes:
• Both models include modal split component with private car and combination of public transport modes
425
Person groups Person group setup in PTV Visum
• Person groups define population segments with similar

travel behavior
• Three main personal characteristics are used in the
segmentation1:
– Nationality (Saudi, Non-Saudi),
– Gender (Men, Women),
– Status of economic activity
• Active: working, entrepreneur, students (higher
education)
• Non-active: seniors, housewives
• The combination of characteristics leads to six person
groups (see table)
• Person group setup ensures easy maintenance of the model
(updatable by data published by GASTAT) and sensitivity of
the model to main changes in population structure
1 Al-Ahmadi, H.M.: Development of Intercity Mode Choice Models for Saudi Arabis
426
Activity pairs Activity pair setup in PTV Visum
• An activity pair is a combination of an activity at the origin

and destination location. Following activities related to long
distance travel are implemented in the model:
– Home
– Mandatory activity (work, business, higher education)
– Social and recreational activity
– Umrah and Hajj trips
– Miscellaneous – “all activity-collection” for Non-Saudis
– International gateway for KSA visitors
• Activity pairs are defined according to local academic
resarch1. In addition to this, segments “miscellaneous Non-
Saudis” and international travellers were created to cover
their specific travel demand
• Activity pairs represents trip purposes. Basic list of trip
purposes is derived from academic reseach1
1 Development of Intercity Mode Choice Models for Saudi Arabia

427
Demand strata
• A demand strata is a combination of activity pairs and one or more person group(s). Demand strata define
homogeneous demand groups (market segments).
• Only reasonable combinations of person groups and trip purposes were considered (combinations with significant trip
frequency)
Demand strata setup in PTV Visum
428
Travel behaviour: Outcome
Final segmentation of demand in KSA NSTM
Segmentation of travel demand

• Segmentation is made to define the structure of travel behaviour in
the Visum implementation.
• The segmentation is with respect to:
– Trips within KSA (national trips)
– Border crossing trips (international trips)
– Trips concerning national and international Hajj and Umrah
trips
429
Network model 4-step passenger demand model

Link costs for each Trip rate model Nr. of produced
transport system and attracted trips
for each demand Output analysis
segment and zone

Gravitation model Nr. of trips for each
demand segment
and pair of zones
Zone productions
and attractivity
Mode choice Output
Logit model Nr. of trips for each
mode and pair of
zones
Homogeneous
430
4-step passenger demand model: Basic description
The 4-step passenger demand models consist of subsequent steps

• Trip generation – estimation of number of trips originating and ending in each zone
• Trip distribution – estimation of number of trips among zone pairs (origin – destination matrices)
• Mode choice – split of origin destination matrices to mode specific matrices
• Assignment – conversion of origin destination matrices to the flow on transport network
Trip generation Trip distribution Mode choice Assignment to each

for each zones from zone i to j for mode k route r
k=4
network
k=3
Oi
k=2
vijkr Dj
k=1
Oi vij
vijk Route Search and Choice

Dj V
Oi – sum of trips of one demand vij – number of trips of one vijk – number of trips of one demand Vijkr – number of trips of one demand segment with
segment originating in zone i demand segment between segment with one mode k between origin one mode k between origin zone i and destination
Dj – sum of trips of one demand origin zone i and zone i and destination zone j zone j on an specific route/way r
segment with destination in zone j destination zone j
V – sum of all trips generated in
one demand segment
431

segment and zone

demand segment
and pair of zones
Zone productions
and attractivity
Mode choice Output
mode and pair of
zones
Homogeneous
432
4-step passenger demand model : Trip generation
Trip generation with trip rate model
1 Trip rate corresponds to the number of trips per person

and day in each demand stratum 3
2 Trip volumes are calculated by multiplying trip rates with
number of persons
3 Finally, subset of long-distance journeys is extracted from
the total volume of daily trips. Final trip volumes generated / attracted by zones
1
1
433
4-step passenger demand model : Trip generation data
Number of persons
• The number of persons in zones is derived from population data (2016).
• Details of zone-level data processing are described on slides related to zoning and land use data.
Zone attributes for person groups Person group size in each zone
434
Trip rates Demand strata
• Defines daily number of trips per person in each

demand strata.
• For international trips, crossing border trip volumes
from statistics1 are used to define the trip rates
• For Hajj and Umrah trips, official statistics2 are used
to define volume of demand.
• Trip rates are sensitive to household income. Visum-Implementation: zone attributes for person groupes
Sensitivity of trip rates is derived from academic
research3
value=0; base model

value=0.2; HHI +20%
1 Annual report 2015 Chapter 3…for international trips / border crossing trips
2 20170322_Hajj data from client-transplated_ptv.xlsx
3 Dargay,J. Clark,S.:The determinants of long distance travel: an analysis based on the british national travel survey, table 7
435
Separation of long distance trips / split-off short distance trips Procedure steps to extract long–distance trips
• A specific function determines the ratio of long distance
and short distance volumes depending on city size.
• The values implemented as zone attribute.
• To develop this function an heuristic approach is used,
based on professional experience in other models and
based on literature
• Source: German household surveys1 & professional
experience and transfer from other models2
Function applied in the heuristic estimation of long distance trips

distance trips
Ratio of long
0 settlement village city megacity

Size of home settlement
* MID 2008 - German Household Surveys, table W 3.1A. Ratio of interzonal trips is in the range of 75%…20% depending on county/city size;
**Integrated Travel model for Berlin and Dresden (Visum models)
436
4-step passenger demand model : Trip generation output
Volume of generated trips Zone attributes storing results of trip generation step
• calculated for each origin and destination zone and

for each demand strata
The result (number of generated trips) is available as

zone attribute for each demand strata within the groups
• Production (trips with origin in zone) and
• Attraction (trips with destination in zone).
437
4-step passenger demand model: Trip generation functionality
Effect of future changes

• The setup of KSA trip generation model allows us to study effect of
development of structural properties on the volume of trips with origin
and destination in specific zones of KSA model.
• Trip generation model is sensitive to changes in following structural
properties and changes:
– Economic factors (GDP)
– Population growth
– Changes in ratio Saudi / Non-Saudi
– Changes in women independent travel policy
– Effects of changes of border crossing to KSA network
438
4-step passenger demand model: Trip generation quality assessment
Acceptance criteria
Test Validation criteria Target
Number of generated trips Reasonableness -
Number of trips per person group Reasonableness -
Number of trips per trip purpose Reasonableness -

Sensitivity to changes in land use
Reasonableness Correct sign of change
(population)
SOURCE : KSA transport model, acceptance criteria report for KSA model 439
Number of generated trips Segments in German household survey Trip rates

All segments 3.4
Validation criteria
• Men 3.5
• Nationwide German household survey shows a mean (3.4) and the
• Women 3.3
range the range (2.9 to 4.0).
• Regional data are available for cities: Distribution1 according stage of life
– Dubai 2.7 Source: Dubai HIS (2007) • Full time professionals 3.8
– Abu Dhabi 2.8 Source: Abu Dhabi HTS (2009) • Part time professionals 4.0
– Qatar 3.21 Source: Qatar HIS (2006) • Students 3.5
• Housewifes/ Housemen 3.3
Result
• Retired people 2.9
• Overall trip rate of KSA-Residents is 3.03. This value includes all
modes, all distance classes, all days of week, all KSA zones and all
population segments
Conclusions:
• Trip rate is within the range of values observed in other regional
models
1 MID 2008: German household survey, table P29.1B trip rates per person (all person groups, all modes, all weekdays, all area types)
440
Number of trips per person group Sample of Regional Surveys Trip rates
Validation criteria
• The ratio of trip rates from other surveys1 shows the state. Qatar (Qatar HIS (2006))
– Trip rates for women are significantly lower than for men • Nationals Male 3.85
– Trip rates of economically active people are higher comparing to • Nationals female 1.50
other segments
Results
• Trip rates in women segments implemented in KSA NSTM are lower
Dubai (Dubai HIS (2007))
than trip rates for men (about by one half).
• Nationals Male 2.69
• Trip rates for active person groups are higher then trip rates in non-
active person groups. • Nationals female 1.74
Conclusion
• Model setup is reasonable. The trip rate values are in line with values
from other models.
1 MID 2008: German household survey, table P29.1B trip rates per person (all person groups, all modes, all weekdays, all area types)
441
Number of trips per trip purpose Volumes of long distance trips by demand segment
Validation criteria
• The Ratio of mandatory – non-mandatory trips compared to surveys. 0 100,000 200,000 300,000
– German household survey*: 25% : 75% Home - mandatory activities (Saudi)
Results Mandatory activities - Home (Saudi)
• Mandatory to non-mandatory ratio for KSA-Residents is 60% : 40% Home - social/recreational Activity
(Saudi)
• The trip rate for national Umrah trips is low (0.01) compared to other trip
purposes due to analysis period (all rates are related to average day) social/recreational Activity - Home
(Saudi)
Conclusion: Home - Miscellaneous activities (Non-

Saudi)
• The assumption is reasonable and reflects the life style specifics Miscellaneous activities - Home (Non-
– KSA has a high ratio of accompanied travel. This leads to more mandatory
Saudi)
trips in male segments Out - In
– KSA has high number of households members comparing to western

countries or Germany (GER 2.25, KSA >6). This reduces the number of non- In-Out
mandatory trips for visiting relatives

*MID 2008: German household survey, table W2.1 A
442
Sensitivity to changes in population size Implementation test

Trips per purpose generated by Saudi & Non-Saudi
Validation criteria - before and after changes in Non-Saudi population -
• Volume of trips decreases with decreasing

population
Result
• Population data are available as zone attributes and
divided in person groups:
• Economic active / non-active Number of Non-Saudi falls to 50%
Number of trips decreases as well
• Men / Women
• Saudi / Non-Saudi
• GDP
• Decrease in population size leads to lower volume
of trips
Conlusion
• Model is sensitive to changes in population.
443

segment and zone

demand segment
and pair of zones
Zone productions
and attractivity
Mode choice Output
mode and pair of
zones
Homogeneous
444
4-step passenger demand model: Trip distribution
Trip distribution mode is implemented using a traditional gravity model Excursus impedance function:
• Calculates long distance flows from each origin to each destination zone A impedance imp from origin i to destination j is
(distribution) given by
• Input  outputs from trip generation (zone volumes)
𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 = exp(−β � 𝑡𝑡𝑖𝑖𝑖𝑖 )
• Output  matrices with volumes among zone pairs whereby:
Types of models applied t time or mean time of modes
𝛽𝛽 parameter <0
Single constraint
• Generated volumes on production or attraction side are fixed and has to Excursus Gravitation model for trip distribution
be maintained during the calculation (double constrained)
• It is used to ensure that the number of trips corresponds to known trip
generation indicators (e.g. number of households) A flow f from origin i to destination j is given by
𝑓𝑓𝑖𝑖𝑖𝑖 = 𝑂𝑂𝑖𝑖 � 𝐷𝐷𝑗𝑗 � 𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖𝑖 � 𝑞𝑞𝑖𝑖 � 𝑑𝑑𝑗𝑗
Double constraint With respect to sum condition
• Generated volumes on both production and attraction sides are fixed and 𝐷𝐷𝑗𝑗 = ∑∀𝑖𝑖 𝑓𝑓𝑖𝑖𝑗𝑗 and 𝑂𝑂𝑖𝑖 = ∑∀𝑗𝑗 𝑓𝑓𝑖𝑖𝑖𝑖
have to be reached during trip distribution calculation
• Applied in cases when the volumes of produced and attracted flows are f flow
known for each zone (e.g. Hajj trips of international guests) O,D zone volumes
q,d solution factors to meet both sum
Model produces input matrices for the next step - mode choice
conditions
445
4-step passenger demand model: Trip distribution data
Trip distribution with gravity model

• Exponential function of impedance (specific for long distance travel)
– Parameters specific for each demand strata
– Distribution impedance represents the effort to travel among zones:
• Depends on trip time (as a proxy for effort)
• For long distance: time, otherwise infinitely high
• Calculated as mean time of all available modes
• Calibrated logit parameters:
– Initial values are set by assumption of a possible probability for
choosing a destination according to the trip length
– Further calibration was done according to model results in comparison
to volume of trips, mean of trip length and counts on links
446
4-step passenger demand model: Trip distribution output
Origin-destination flows List of available matrices
• Available in matrix form

• One matrix for each demand strata
Detail of distribution matrix displayed in Visum matrix editor
447
4-step passenger demand model: Trip distribution functionalities
Effect of future changes Geographical OD-Flow analysis OD-flows between zones

(visualisation of matrix values)
The setup of KSA trip distribution model The setup of KSA trip distribution model
allows us to study effect of the following allows us to study
future changes on the trip distribution:
• the spatial distribution of traffic flows
• Influence of rehabilitation of and their changes
infrastructure and new built
• the effect on specific trip length
infrastructure
(according to trip purpose)
• Influence of improvement of the
services or new categories of service Trip lenght distribution
250000
• Influence of implementation of
transport policy measures
200000
number of trips
150000
• Influence of development of inter and
intra city transport
100000
50000
These changes have an effect on values
(1000;…
0
within skim matrices and therefore on
(950; 1000)
(0; 50)
(100; 150)
(150; 200)
(200; 250)
(250; 300)
(300; 350)
(350; 400)
(400; 450)
(450; 500)
(500; 550)
(550; 600)
(600; 650)
(650; 700)
(700; 750)
(750; 800)
(800; 850)
(850; 900)
(900; 950)
(50; 100)
distribution of flows.
448
4-step passenger demand model: Distribution model quality assessment
Acceptance criteria
Average trip length per activity Reasonableness Higher values for activities
with sparse and strong
activities
Shape of trip length distribution Reasonableness Positive skewness
Sensitivity of trip distribution to Reasonableness Negative

increased link impedances
Sensitivity of trip distribution to Reasonableness positive
increased PuT standards
Average trip length by trip purpose (in km)
Average trip lengths per activity 0 200 400 600 800
Home - mandatory Activities (Saudi)

Validation mandatory Activities - Home (Saudi)
• Activities with sparse and strong attractors Home - Social/Recreational Activity (Saudi)
should have higher values of trip lengths Social/Recreational Activity - Home (Saudi)
Home - Umra (Saudi)

Result
Umra - Home (Saudi)
• The mandatory purposes have longer trip
Home - miscellaneous Activities (Non-Saudi)
length than non-mandatory purposes (see
graph) Miscellaneous Activities - Home (Non-Saudi)
Out - In
Conclusion In-Out
• The model setup is reasonable Out - Umrah
Umrah - Out
450
Shape of trip length distribution Average trip length by trip purpose (in km)
250000
Validation
• The frequency graph should have positive skewness 200000
Result
The trip length distribution in the model has a positive
150000
number of trips
•
skewness
• The graph has more than one peak. This is the typical 100000
effect for polycentral areas

• As expected, model has no (intra-urban) short distance 50000
trips
Conclusion 0
• The model setup is reasonable
451
Sensitivity of trip distribution to increased link impedances Car travel time increased by 20% for each OD-pair
Validation
Trips distance frequencies before and after changes in impedance
• Higher impedances (travel costs) will lead to increased demand 250000 120%
for travel to closer destinations
200000 100%
Result
80%
150000
60%
• As expected, the frequency of trips to closer destinations 100000
40%
increases in reaction to the increase of travel costs 50000 20%
Conclusion: 0 0%
• Trip distribution model is sensitive to travel costs

case 0 case 1 [ % of changes]
Higher travel impedances (higher travel time) lead to the shift

of trips to closer destinations.
452

segment and zone

demand segment
and pair of zones
Zone productions
and attractivity
Mode choice Output
mode and pair of
zones
Homogeneous
453
4-step passenger demand model: Mode choice
Mode Choice Model with Logit-Model Excursus Logit-model for mode choice:
• Mode choice model splits each single OD flow (from distribution
model) into mode specific flows Market share of a mode k is given by
• Utility function defines attractivity of mode exp(𝑈𝑈𝑘𝑘 )

𝑟𝑟𝑘𝑘 = ∑
𝑘𝑘′ exp(𝑈𝑈𝑘𝑘′ )
• Final conversion of (car) passenger trips to car (vehicle) trips is done
by attribute "car occupancy rate"
whereby:
• Model generates mode specific matrices used in final assignment of
flows on transport networks U: utility function for a mode (linear combination
• Following modes are considered in the mode choice model: of mode specific values (f.e. time, costs,…) and
corresponding parameters“generalized costs“)
– Private transport (Car)
– Public transport (PuT) integrating following transport sub- The mode flow for k from zone i to j is given by:
systems:
• Air 𝑓𝑓𝑖𝑖𝑖𝑖𝑖𝑖 = 𝑟𝑟𝑘𝑘 � 𝑓𝑓𝑖𝑖𝑖𝑖
• Long distance bus
• Train
• PuT Access – access of public transport stop
• The integration of several PuT systems in one mode, PuT, ensures
intermodality, e.g. combination of air and train within one trip
454
Utility functions Sensitivity to economic changes

• The model specification is based on local research1 • The sensitivity to development of GDP per capita is enabled
• The utility function structure and the parameters are using variation of time coefficients
implemented in Visum (initial parameter set) and adjusted to • The sensitivity of value of travel time to GDP per capita is taken
local specifics from academic paper2
• Travel time and travel costs are the main factors influencing
mode choice
Implementation of utility function and Logit model in Visum
1 Shires, J.D.: An international meta-analysis of values of travel time savings

2 Al-Ahmadi, H.M.: Development of Intercity Mode Choice Models for Saudi Arabia 455
Conversion of car passenger trips to car vehicle trips Car occupancy rate per demand strata
• Conversion is necessary due to comparability to link

capacity (unit: [car/day])
• Car occupancy rate per demand strata is:
– Implemented and available in Visum list
– Current values take into account ban of women driving
– Data available from local studies1
• Car matrices are available in Visum:
– Calculated after mode choice
– Passenger matrices per demand strata multiplied with
car occupancy rate per demand strata
• Car matrices per segment are used in subsequent
assignment step
* Osra, Khalid: Vehicle occupancy rates and trip purpose in Makkah during Ramadan and Hajj periods,
Algunaibet, M. and Walid, M.: The Responsiveness of Fuel Demand to Gasoline Price in Passenger Transport. A Case Study of Saudi Arabia
456
4-step passenger demand model: Mode choice output and functionalities
Mode Flows Visum-Graph: Modal-Split per zone (example) List for all mode matrices
• For each demand strata mode matrices (Car and
PuT) are available.
• Modal split of long distance trips can be
calculated
– per zone / per aggregated area
– per OD pair
• The setup of KSA mode choice model allows us
to study effect of following external factors on
mode choice:
– Development of economic and social factors
– Economic structural changes
– Improvement of infrastructure
or new infrastructure
– Improvement of service or
new service
– Changes in transport policy
– Changes in international travelling
(time, administration, infrastructure)
457
4-step passenger demand model: Mode Choice quality assessment
Acceptance criteria

Share of modes per demand strata Reasonableness -
Trip distribution per mode (car, air, Reasonableness -

train, bus) by trip distance
Mean trip length for Car, air, train Relative differences -
bus
Share of modes per demand strata Reasonableness -
Share of modes per demand strata mode share per demand strata
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Validation
Home - mandatory Activities (Saudi)
• The share of long-distance modal-split should show
reasonable results. mandatory Activities - Home (Saudi)
Home - Social/Recreational Activity (Saudi)

Result
Social/Recreational Activity - Home (Saudi)
• For mandatory trips there is only a light preference to car
travelling. Home - Umra (Saudi)
• Social trips/ Umrah trips the mode car is more often used Umra - Home (Saudi)
(travel with family). Home - miscellaneous Activities (Non-Saudi)
• External trips are done mostly by car. Note that for these Miscellaneous Activities - Home (Non-Saudi)
demand strata the model describes the trip only between
the gateway and the destination within KSA. The „crossing Out - In
the border trip“ by an airplanes are not included in the In-Out

model.
Out - Umrah
Conclusion Umrah - Out
• The model setup is reasonable.

Car Passenger PuT passenger
459
Trip distribution per mode by trip distance trip distribution per mode by trip distance
0% 20% 40% 60% 80% 100%
Validation (0; 50)
• The share of long-distance modal-split should have (50; 100)
(100; 150)
reasonable results. (150; 200)
(200; 250)
(250; 300)
Result (300; 350)
(350; 400)
• The charts shows the ratio of modes by trip distances. The (400; 450)
share of PuT decreases not very constantly. On some (450; 500)
(500; 550)
upper distance classes are a high PuT ratio. This is due to (550; 600)
the fact that the transport system air is a part of PuT. If (600; 650)
there are OD-pairs with a good air connection, high
(650; 700)
(700; 750)
percentage of PuT is shifted to these OD pairs. (750; 800)
(800; 850)
(850; 900)
Conclusion (900; 950)
(950; 1000)
• The model setup is reasonable (1000; MAX)
Car passenger PuT passenger
460
Mean trip length for modes
Validation
• The mean of long-distance modal-split should show reasonable results.
Result
• The mode air has the longest trip length. Air is a transport system within the mode
PuT. Therefore the trip length for PuT should be significantly longer than PrT.
• In the model the specific trip length means are:
– PuT: 630 km
– PrT: 282 km
Conclusion
• The model setup is reasonable.
461
4-step passenger demand model: Setup Hajj model
Hajj model for international guests Sketch: Hajj travel segmentation

• Due to the very specific travel behaviour of Accomodation round
Hajj-trips and the hight amount of travellers Medina Airport
to specific areas within a very short time Purpose no 4:
period, for Hajj-trips a separate passenger Accom. near to Medina –
demand model is build. Checkpoint Makkah
Medina
Segmentation for Hajj model Airport Purpose no 3:
1. Arrival trips from all gateways to Makkah Medina Airpoint –
Acc. near to Medina
(air, land, boat)
(air, land, boat)

All gateways
(Holy place)
All gateways
2. Departure trips from Makkah to all
Makkah
gateways
3. Arrival trips to accommodation round
Medina (specific for Medina Airport)
4. Trip from accommodation round Medina to Purpose no 1: Purpose no 2:
Makkah (only to Medina Airport Arrival to Makkah Departure from Makkah
passengers)
All trip purposes are independently. More complex trip chains can be added.
462
4-step passenger demand model: Setup Hajj model
Trip generation
• The amount of Hajj travellers is given by arrivals for airports and other checkpoints.
• The generation of arrivals to Hajj and departures from Hajj according to the weight of airports and checkpoints
(weight: volume specific checkpoint / sum of volumes of all checkpoints).
• The factor for Hajj demand per day estimated from temporal distribution of flows during the Hajj period.
Trip distribution with gravity model
• There is no need to destination choice because the destination zone is given (Makkah)
• Logit function (specific for Hajj demand strata) without distance sensitiveness to impedance
• Distribution model is double constrained, because the amount of Hajj travellers is given by official statistics and
controlled through visa policy. In result, generated volumes of production and attraction side are fixed and have to
be reached through trip distribution modelling.
Mode choice with Logit mode choice model

• Model specification is based on local academic research*
*Al-Ahmadi: H. M.: Development of Intercity Mode Choice Models for Saudi Arabia 463
4-step passenger demand model: Hajj model outcome
Purpose no. 1: Arrival to Makkah Purpose no 3: Medina Airport – Accom.
Purpose no 2: departure from Makkah Purpose no 4: Accomodation - Makkah
464

segment and zone

demand segment
and pair of zones
Zone productions
and attractivity
Mode choice Output
mode and pair of
zones
Homogeneous
465
4-step passenger demand model: Assignment
Traffic assignment model converts origin-destination matrices provided by mode choice model to flows on transportation networks
100 car trips

Origin X Destination Y Output of mode choice model
Route A 700 cars
Origin X Destination Y Output of assignment model
Route B 300 cars
Assignment procedures are specific for each transport system:

• Private transport - Equilibrium assignment, based on calculation of route choice according to route impedances (time, costs)
• Public transport - Headway based assignment, combining public transport modes with respect to several public transport specific impedances
(access to public transport stop, transfer time, waiting time, travel time, fare, etc.)
466
4-step passenger demand model : Private Transport Assignment
Private transport assignment procedure is based on the assumption that travellers try to find the path with the lowest impedance.
Network equilibrium occurs when travellers cannot reduce travel costs by shifting to another path.
Impedance functions for private transport assignment (car) Private transport impedance (VISUM implementation)
• Utility function structure is consistent with international modelling

standards
• Utility function parameters are based on local academic research1
– Value of time used in assignment procedures is consistent with
value of time applied in mode choice component
– Car operating costs are based on local research2
• Private transport impedance function is composed of
– loaded network travel time (depending on speed, capacity, flow
volume, volume-delay function of links)
– car operating costs (SAR/km) multiplied by time/cost ratio and
length of links
– toll multiplied by time/cost ratio
1 Al-Ahmadi, H.M.: Development of Intercity Mode Choice Models for Saudi Arabia
2 The Responsiveness of Fuel Demand to Gasoline Price in Passenger Transport
467
4-step passenger demand model : Public Transport Assignment
Headway assignment for Public Transport is specified for each PuT demand segment. Demand segments and associated matrices are shown in the table
below.
Demand segments assigned in public transport assignment procedure
Impedance functions for Public Transport Assignment

• The value of service headway enters the assignment procedure. It is based on public transport operator data indicating the average gap between
two departures within one day (bus and rail) or one week (air). The minimum value is one service per week
• Utility function parameters are based on local academic research1
• Unit of public transport impedance is a second. General structure of the impedance is:
Impedance = Perceived journey time (including weighted transfer times) + time/cost ratio * fare.
*Al-Ahmadi, H.M.: Development of Intercity Mode Choice Models for Saudi Arabia 468
4-step passenger demand model: PrT assignment quality assessment
Calibrated model assessment is done on the model with OD matrices adjusted to fit observed network flows (count data), according to “FHWA Travel
Model Validation and Reasonableness Checking Manual” validation standards.
Test Validation criteria Results Conclusion

Observed vs. Modelled %RMSE < 30% %RMSE = 24,02% Performance of model reaches
Root Mean Square Error validation target
Observed vs. Modelled 85% of counts with GEH < 32 (equivalent for daily assignment of GEH < 10 95% of count locations with GEH below Performance of model reaches
Link GEH Comparisons for an hourly assignment) 32. validation target
Observed vs. Modelled R squared value > 0.85 R² = 0,967 Performance of model reaches
Count XY Scatter Plots Line of best fit y = 0.9x to 1.1x Y = 0,9101x validation target
Route choice Randomly selected O-D pairs. Highest share for the fastest route Flow bundle analysis matched with Route choice is consistent with
shortest path search (based on impedance
impedance)
Model Convergence of the This indicator is the difference between the costs along the chosen routes The assignment reached convergence Performance of model reaches
PrT Assignment and those along the minimum cost routes, summed across the whole after 3 of a maximum of 20 iterations validation target
network and expressed as a percentage of the minimum costs. A transport with a GAP of 0.002%.
model is deemed to have reached convergence when δ is less than one per
cent
469
Observed vs. modelled count XY scatter plot of PrT assignment Observed vs. modelled link flow GEH comparison (logarithmic scale)
45 300
y = 0.9101x
40 300 R² = 0.9673
30 000
35 300
30 300
Estimated values
Estimated values
25 300
20 300
3 000
15 300
10 300
5 300
300 300
300 5 300 10 300 15 300 20 300 25 300 30 300 35 300 40 300 45 300 50 300 300 3 000 30 000
Observed values Observed values
470
Shortest path search and flow bundle analysis
471
4-step passenger demand model: PuT assignment quality assessment
Public transport assignment assessment is done according to “FHWA Travel Model Validation and Reasonableness Checking
Manual” validation standards :
Test Validation criteria Results Conclusion

Observed vs. 70% of counts with GEH < 32 (equivalent for daily 88% of counts with GEH Performance of model
Modelled Link assignment of GEH < 10 for an hourly assignment). below the limit reaches validation
GEH Bus lines have been calibrated with more restrictive target
Comparisons GEH < 10 as volumes are lower, even for a daily
period
Observed vs. R squared value > 0.85 R² = 0,9901 Performance of model

Modelled Count Line of best fit y = 0.85x to 1.15x Y = 0,9938x reaches validation
XY Scatter Plots target
472
4-step passenger demand model: PuT assignment quality assessment
Observed vs. modelled count XY scatter plot of PuT assignment

60 300
y = 0.9938x
50 300 R² = 0.9901
40 300
Estimated values
30 300
20 300
10 300
300
300 10 300 20 300 30 300 40 300 50 300 60 300
Observed values
473

segment and zone

demand segment
and pair of zones
Zone productions
and attractivity
Mode choice Output
mode and pair of
zones
Homogeneous
474
Passenger model functionality: Assignment of private transport demand
Assigned flows on road network in base year model
475
Passenger model functionality: Assignment of public transport demand
Assigned flows on public transport networks in base year model (air, train and intercity bus)
476
Passenger model functionality: Volume to capacity ratio in base year model
Link volume / capacity ratios after the assignment of long distance private transport trips
477
Freight Model Framework

segment and zone

demand segment
and pair of zones
Zone productions
and attractivity
Mode choice Output
mode and pair of
zones
Homogeneous
478
Application of transport modelling to freight
The public interest in modelling transport demand is to test the impact of

interventions on the performance of shared networks.
This requires making assumptions on

• The current and future generation and distribution of traffic flows
• The way in which users respond to the (generalised) cost of using those
networks.
Traffic flows can be estimated by conducting sample surveys and

• Generalising the results to estimate how the whole passenger and freight
populations behave
• And/Or by using experience from other work, grossing up to available data.
479
Freight modelling as compared with passenger modelling
Passenger behaviour and the value that passengers derive from networks and
interventions
• Will be based upon prices paid and the time spent travelling and waiting.
• The prices charged are often not related to costs but are set by authorities
following public policy strategies
Freight behaviour is much less influenced by time spent travelling

• Mainly influenced by prices in the transport market.
• But providing there is active competition, prices in the freight market will reflect
underlying resource costs
Some external shipping costs are highly influential in determining the point of
entry of exit (into the KSA)
• These costs are calculated in an external model that identifies global liner
shipping services and the cost of fuel, port entry, ship charter and other costs.
480
Freight modelling and shared networks
For this study, the short time available led to heavy reliance on data already
available and international experience to establish passenger and freight models.
Models generally consist of descriptions of :

• networks (road, rail and terminals),
• scheduled public passenger services using those networks
• demand from passengers and freight described by their origins and destinations
A single freight and passenger network was defined :

• including current and foreseeable links and terminals
• identifying as appropriate which are open to passengers and freight respectively
The output is traffic flows by road and rail and through ports and the overall cost
of moving freight within KSA (‘system costs’)
481
Freight model structure
A traditional 4 part freight model was employed to reflect

• The volume of cargo generated
• The destinations to which that cargo was distributed
• The choice of mode
• The routes (road, rail and by port) that were selected
A base year model run was developed that

• reflected current port throughputs
• approximated to current road traffic counts and rail traffic
Finally those traffic counts were employed as further evidence on traffic
distribution to calibrate the freight model
482
Zones and land use 4-step freight demand model
Output
Freight generation
Zones of Freight tonnes by
production and mode of appearance
Freight by mode of
attraction category produced and
appearance
attracted by zone
Output analysis
Freight Demand
Segmentation
OD Output
Freight distribution
Freight tonnes between

Freight allocation
zones
Tonnes by mode of models
appearance, origin
and destination
Output
Port and Mode choice
Allocation of freight
units to ports and
Network model Logit models
Links shared with modes
passenger network;
can be turned Assignment Output
on/off specific to
freight usage; costs Freight units on each
for each transport Minimum cost solution network link;
system System costs
483
Zones and land use: Freight
The zone structure for KSA is shared between the passenger and freight models e.g. population centres as well as zones specific to freight
such as intermodal terminals
Zones relevant to freight are categorised as follows:

• Administrative – these are the population zones and are the main consumers of freight
• External – these include world regions and neighbouring counties
• Freight Terminal – these are access points onto and off the rail network, to and from roads and other zones including dry ports
• Industrial – these include industrial cities as well as plants, refineries and other producers, consumers and distributers of freight
Administrative zones External zones Freight terminals Industrial zones
484
Zones and land use: Freight
Other zones relevant to freight are categorised as follows:

• Mines
• Sea Ports
• Airports
Mines Sea Ports Airports
485
Zones and land use: Data and setup
Zones Zone structure implemented in PTV Visum
• Zones are the origin and destination
of every freight movement
• Population and land use attributes
are used throughout the model as
proxies for freight production and
consumption
Connectors
• Represent connection between the
zones and the network
• Can be used to show freight flows
• Allow discriminate access between
zones and different parts of the
network e.g.
trucks only
486
Zones and land use: Data and setup
Zones attributes
Attribute Units Description
FREIGHT_CLASSIFICATION This is used to tell parts of the freight model how to use the zone
FREIGHT_ACTIVE Yes/No This determines whether or not an industrial area is considered in the model
FREIGHT_PRODUCTION_TONNES Tonnes The annual production of the given material produced within a zone
FREIGHT_INBOUND_CONTAINERS Tonnes The annual tonnage of containers from each world region or neighbouring country
FREIGHT_OUTBOUND_CONTAINERS Tonnes The annual tonnage of containers leaving each port

FREIGHT_INBOUND_GENERAL_CARGO Tonnes The annual tonnage of general cargo entering a port
FREIGHT_INBOUND_SOLID_BULK Tonnes The annual tonnage of solid bulk entering a port
FREIGHT_MARITIME_COST_FROM_EUROPEANDMED SAR/TEU The shipping cost, per TEU, of shipping from Europe and Med to the port
FREIGHT_MARITIME_COST_FROM_FAREAST SAR/TEU The shipping cost, per TEU, of shipping from Far East to the port
FREIGHT_MARITIME_COST_FROM_GULFANDISC SAR/TEU The shipping cost, per TEU, of shipping from Gulf and ISC to the port
FREIGHT_MARITIME_COST_FROM_NORTHAMERICA SAR/TEU The shipping cost, per TEU, of shipping from North America to the port
FREIGHT_MARITIME_COST_FROM_SUBSAHARANAFRICA SAR/TEU The shipping cost, per TEU, of shipping from Sub-Saharan Africa to the port
FREIGHT_PORT_ADDITIONAL_COST SAR/TEU The representative cost of customs processing at the port
FREIGHT_CUSTOMS_BENEFIT SAR/TEU The representative cost saving of using a dry port
487
Zones and land use: Model outputs
Map of cement producing zones
Attributes of the zones

• Land space occupied by industrial areas
• Freight production for specific products e.g.
tonnes
of cement
488
Zones and land use: Model functionalities
Accessibility of the zones

• Travel cost from zone to zone as matrices and by mode
• Total cost of freight transport from zone to zone, by road and by rail, and accessible as matrices
Example cost matrix
489
Zones and land use: Quality assessment
Quality assessment
• Costs by mode between zones checked to be representative of real world costs
• Port and terminal throughputs checked to be realistic against actual data
490
Output
Freight generation
Freight by mode of
appearance
attracted by zone
Output analysis
Freight Demand
Segmentation
OD Output

Freight allocation
zones
appearance, origin
and destination
Output
units to ports and
passenger network;
on/off specific to
system System costs
491
Freight segmentation
Modes of appearance
Freight is categorised using the following modes of appearance :
• Containers
• General Cargo
• Solid Bulk
• Liquid Bulk
Further segmentation
Domestically produced freight is categorised further :
• Cement
• Gasoline
• Steel
• Bauxite
• Phosphate
• Air
492
Output
Freight generation
Freight by mode of
appearance
attracted by zone
Output analysis
Freight Demand
Segmentation
OD Output

Freight allocation
zones
appearance, origin
and destination
Output
units to ports and
passenger network;
on/off specific to
system System costs
493
Network model: Basic description
The Network model describes transport supply represented by all private, public and freight transport infrastructure and services relevant
to long distance travel within KSA and from/to external zones
Network model is composed of a multimodal network with 4 transport systems relevant for freight traffic :
• Truck, Rail Freight, Maritime, Air (freight)
Road network Rail network Maritime network Air network
494
Network model: Road network
Road network implemented in PTV Visum

Network and link classification
• Based on the same road network as the passenger
model
• Link travel times are calculated as 1.5 time the car
travel times
• This relationship can be altered in the model
inputs
Outputs and functionality
• Travel time and distance across links
• Ability to restrict access to trucks on certain links
or make them accessible only to trucks
• Set road tolls specific to trucks
• Add or remove road access to intermodal
terminals
Quality assessment
• Same as for passenger model
495
Network model: Rail network data, outputs
Network and link classification Rail freight network implemented in Future rail network links available for
• Rail network comprises passenger-only, freight- PTV Visum future testing implemented in PTV
only as well as passenger and freight rail links Visum
• Future railways i.e. not yet built, are included in
the network and capable of being activated as
required
• Used for assignment of rail flows as determined
by the mode choice model
• Source: Saudi Railway Masterplan
• Rail speeds are defined in the rail cost model
• This speed can be altered in the user inputs
Outputs and functionality
• Access to the rail network through terminals
can be switched on and off using the transport
system attribute
• This allows interventions such as new
intermodal terminals to be activated and
deactivated as necessary
Quality assessment
• Same as for passenger model
496
Network model: Maritime network data and setup
Network and link Maritime network implemented in PTV Visum

classification
• Represents shipping
routes between KSA
and the rest of the
world
• Source: UNCTAD Port
Connectivity
Connections to external
zones (around KSA)
• Major links connecting
KSA with surrounding
countries are included
in the model
• Setup of link
parameters done
according to
connections between
ports and zones.
497
Output
Freight generation
Freight by mode of
appearance
attracted by zone
Output analysis
Freight Demand
Segmentation
OD Output

Freight allocation
zones
appearance, origin
and destination
Output
units to ports and
passenger network;
on/off specific to
system System costs
498
Freight demand model: Freight generation and distribution data and setup
In the absence of a freight survey or domestic origin – destination data

• Model based upon characteristics of the KSA economy
• Data derived pragmatically from production, import and export statistics
• Distribution modelled on the basis of cost minimisation and international patterns of primary and secondary
distribution
• Empty movements based on balancing vehicle movements
• Modelled on the basis of tonnes reduced to daily heavy goods vehicle equivalents
The following data was used to help to estimate freight demand in the base year, all based on zones
• The capacity of refineries and local consumption of gasoline
• The capacity of cement plants and their annual production
• The production of steel plants
• The production of phosphate and bauxite
• The distribution of industrial land (square kms)
• The distribution of the population
• The throughput of tonnages through individual ports
• The throughput of air cargo at principal airports
• Freight vehicle traffic counts (to improve distribution estimates)
• Rail traffic movement
499
Freight demand model: Underlying assumptions
In the case of imported container and ro-ro traffic cargo and onward distribution
• to originate or be destined for world cargo areas (or local countries) based on distribution of trade
• to be defined in absolute terms by KSA port statistics and border crossing data
• goods assumed to be carried as primary distribution to centres pro-rata to industrialised areas
• goods then carried from those areas to populations (secondary distribution)
In the case of cement and gasoline
• cargo assumed to pass from the nearest plant to population (which is taken as a proxy for consumption),
consistent with plant capacity
In the case of steel
• cargo assumed to be distributed nationally on the basis of population, assuming each plant produces
specialised output
In the case of phosphate and bauxite
• cargo assumed to pass to dedicated ports by rail for export or processing
Air cargo to be distributed on the basis of population distribution and nearest principal airport
Different cargo categories modelled on the basis of their distribution characteristics, depending on whether
flows are specific to particular sites (e.g. mine to port/factory), serve a population as efficiently as possible with
an homogenous commodity (e.g. cement) or involve distribution to populations (through ports and
distribution centres)
500
Freight demand model: International traffic data and onward distribution
International freight demand

• Used to represent freight entering KSA from outside of the Kingdom
• Based on port throughput values provided by Saudi Ports Authority official port statistics
• Allocated to world regions using MDST World Cargo Database
• Stored in the attribute “FREIGHT_INBOUND_CONTAINERS”
Processing
• The MDST World Cargo Database records trade flows between countries
• Origins of cargo destined for KSA were scaled to match SPA port statistics and aggregated
to estimate origin region to KSA cargo flows
501
Freight demand model: International demand and onward distribution
International freight World region container flows

demand
• Volumes of containers
being imported from the
various world regions as
well as neighboring
countries are recorded
as zone attributes
• These are distributed
among internal zones
according to industrial
land use and population
502
Freight demand model: International demand and onward distribution
International freight Zone attributes used in demand model

demand
• Land area and
population of zones can
be seen here
• Land area can be
manipulated by
manually resizing zones
using the network editor
Distribution
• Python scripts are used
to distribute
international traffic
amongst
internal zones
503
Freight demand model: Cement and gasoline
Cement and gasoline Zone attributes used in demand model

• Major links connecting KSA with surrounding
countries are included in the model
• Setup of link parameters done according to
satellite pictures
• The purpose of this component is to model
the flows of cement and gasoline throughout
KSA
• The inputs to this component are the zones
producing cement and gasoline and their
production values
• The industrial land use and population data
• Source: production and consumption statistics
• Attributes:
– FREIGHT_CLASSIFICATION: Cement or
Gasoline
– FREIGHT_PRODUCTION_TONNES: annual
production
504
Implementation Model implementation in Python
• Cement and gasoline production at each site is fixed according to the values
supplied in the zone attributes
• Production is shared amongst population centres as well as industrial areas
• Cement is distributed according to population only
• Gasoline is distributed 75% to population and 25% to industrial areas
• A doubly constrained gravity model is used for distribution – the production and
consumption of each zone is fixed with the production volume being transported to
the nearest consumer first
(𝐴𝐴𝑖𝑖 𝐵𝐵𝑗𝑗 𝑂𝑂𝑖𝑖 𝐷𝐷𝑗𝑗 )
• 𝑇𝑇𝑖𝑖𝑖𝑖 = 𝑘𝑘 5
𝑑𝑑𝑖𝑖𝑖𝑖
• T = tonnes between origin i and destination j

• k=1
• Ai = production correction
• Bj = consumption correction
• Ai = origin production
• Bj = destination consumption
• d2ij = transport cost between origin and destination
• Constraints:
– ∑𝑖𝑖 𝑇𝑇𝑖𝑖𝑖𝑖 = 𝐷𝐷𝑗𝑗
– 𝑗𝑗 ∑ 𝑇𝑇𝑖𝑖𝑖𝑖 = 𝑂𝑂𝑖𝑖
• This is an iteration based model reaching convergence when total production and
consumption numbers reach the correct values
505
Output matrices in PTV Visum

Outputs
• The production of each
plant/refinery
• The origin-destination flows of
cement and gasoline
throughout KSA
• Individual demand matrices for
each
Functionalities
• New production plants can be
added to the zone structure
• Production values can be
updated
• Changes in land use will
change distribution of flows
506
Freight demand model: Steel
Steel Zone attributes used in demand model
• The purpose of this component

is to model the flows of steel
throughout KSA
• The inputs to this component
are the zones producing steel
and their production values
• The industrial land use and
population data
• Source: production statistics
• Attributes:
– FREIGHT_CLASSIFICATION:
Steel
– FREIGHT_PRODUCTION_
TONNES: annual production
507
Model implementation in Python

Implementation
• Steel production at each site is fixed according to the
values supplied in the zone attributes
• Production is shared amongst population centres as well
as
industrial areas
• In the base case, steel is distributed 50% to population
and 50% to industrial areas to reflect assumptions on
consumption
• A deterministic model is used as for steel, unlike cement,
each plant is assumed to be producing a different
product which will have a
national market
508
Outputs Output matrix in PTV Visum
• The production of each plant

• The origin-destination flows
of steel throughout KSA
• Individual demand matrix
Functionalities
• New production plants can
be added to the zone
structure
updated
509
Freight demand model: Mine outputs
Zone attributes used in demand model

Phosphate and bauxite
• The purpose of this
component is to model the
flows of phosphate and
bauxite throughout KSA
are the zones producing
phosphate and bauxite and
their production values
population data
• Source: rail data and
production statistics
• Attributes:
Phosphate or Bauxite
– FREIGHT_PRODUCTION_
TONNES: annual
production
510
Freight demand model: Mine outputs
Output matrices in PTV Visum

Outputs
• The production of each mine
• The origin-destination flows of
phosphate and bauxite
throughout KSA
• Individual demand matrices for
each
Functionalities
• New production plants can be
added to the zone structure
updated
511
Freight demand model: Air freight
Zone attributes used in demand model

Air freight
• The purpose of this
component is to model the
flows of air freight throughout
KSA
are the airports and their
freight handling volumes
population data
• Source: air freight statistics
• Attributes:
Air
– FREIGHT_PRODUCTION_T
ONNES: annual production
512
Implementation Model implementation in Python

• Air freight at each airport is fixed according to the values
supplied in the zone attributes
• Demand is shared amongst population centres as well as
industrial areas
• Freight is distributed 50% to population and 50% to
industrial areas to reflect assumptions on consumption
patterns
• A doubly constrained gravity model is used for
distribution – the production and consumption of each
zone is fixed with the production volume being
transported to the nearest consumer first
(𝐴𝐴𝑖𝑖 𝐵𝐵𝑗𝑗 𝑂𝑂𝑖𝑖 𝐷𝐷𝑗𝑗 )
• 𝑇𝑇𝑖𝑖𝑖𝑖 = 𝑘𝑘 2
𝑑𝑑𝑖𝑖𝑖𝑖
• Constraints:
– ∑𝑖𝑖 𝑇𝑇𝑖𝑖𝑖𝑖 = 𝐷𝐷𝑗𝑗
– ∑𝑗𝑗 𝑇𝑇𝑖𝑖𝑖𝑖 = 𝑂𝑂𝑖𝑖
• This is an iteration based model reaching convergence
when total production and consumption number reach
the correct values
513
Output matrix in PTV Visum
Outputs
• The freight demand at each airport
• The origin-destination flows of air
freight
throughout KSA
• Individual demand matrices for each
Functionalities
• New airports can be added to the zone
structure
• Air freight values can be updated
• Changes in land use will change
distribution of flows
514
Freight demand model: Coverage, empties and conversion to daily flows
Modelling was based on tonnages so initially only loaded units are modelled. Empty trucks
estimated by:
• calculating regional imbalances and ‘allowing’ trucks to return to ‘base’.
Model was limited to long distance freight movements. Principal exclusions are therefore:
• intra-urban movements involving local deliveries
• the local movement of aggregates (approx. 300m tonnes p.a.)
• local movements of trucks moving between points of discharge and points of re-loading with
back-hauls
All modelling was conducted in annual tonnes. Conversion of freight tonnages to freight units
involved:
• assuming 20 tonnes per loaded unit or container (inc. tare weight)
• division by 365 to produce daily flows
• rail traffic being reflected as daily truck or container equivalents
515
Modelling empties; assumptions Model implementation in Python
• Trucks are able to pick up backloads

and do not necessarily return
directly back to the zone they
originated in
• We therefore balance origin-
destination matrices at the main
zone level
• Flows in one direction from main
zone-main zone are matched in the
opposite direction
• These main zone flows are then
disaggregated back to zone-zone
flows
516
Model implementation in Python
Modelling cement and gasoline

empties
• In the case of cement and
gasoline, specialised road or rail
vehicles are likely to be used for
transport
• These will then return to base
empty
• We therefore balance these
flows at the individual
zone level
517
Road and rail cost models: Associated with network links and terminals
Road cost model implemented in Python Rail cost model implemented in Python
The cost of road and rail freight
transport throughout KSA is
modelled using road and rail cost
models
Components making up the cost
models:
• Fuel price
• Financing, insurance,
depreciation, overheads,
maintenance and employment
costs
• Interzone distances
• Travel times
• Tolls (infrastructure charges)
518
Road and rail cost models: Road data and setup
Road cost model Road cost matrix in PTV Visum

• For each zone pair within the zone structure there is a road cost
associated with it based on distance and time spent
loading/unloading
• This represents the cost of moving one truck between the two zones
Inputs
• Zone-zone travel time (car)
• Zone-zone distance
• Zone-zone tolls (infrastructure charges)
• Cost assumptions
Processing
• Fixed costs are summed and distributed over working hours to give
cost per hour
• Fuel costs per km are calculated using fuel price and fuel economy
inputs
• Costs per time and distance are multiplied by travel time and
distance matrices
Outputs
• Zone-zone cost matrix
519
Road and rail cost models: Inputs
Road inputs
Name Value Unit Remarks
FREIGHT_FUEL_PRICE_PER_LITRE_ROAD 0.64 SAR/litre Current price in KSA
FREIGHT_ROAD_DEPRECIATION_PERIOD_YEARS 5 Years Typical for bank financing
FREIGHT_ROAD_DRIVER_SALARY_ANNUAL 37,500 SAR Typical in the Arabian peninsula
FREIGHT_ROAD_EQUIPMENT_COSTS 562,500 SAR Based on international market prices
FREIGHT_ROAD_FUEL_KM_PER_LITRE 2.7 Km/litre Typical of heavy goods vehicles
FREIGHT_ROAD_INSURANCE_AND_ 112,500 SAR Reasonable assumption
REGISTRATION_ANNUAL
FREIGHT_ROAD_INTEREST_RATE 10 % Combined percentage to reflect profit and finance costs
FREIGHT_ROAD_JOURNEY_TIME_MULTIPLIER 1.5 Time taken per journey relative to car speeds
FREIGHT_ROAD_LOAD_DISCHARGE_TIME_HOURS 4 Hours Time taken to either load or discharge a vehicle and to reposition for return load
FREIGHT_ROAD_OVERHEADS_TYRES_MAINTENANCE_ 112,500 SAR Reasonable assumption based upon road haulage companies
ANNUAL
FREIGHT_ROAD_WORKING_DAYS_ANNUAL 250 Days Typical asset productivity for heavy goods vehicles
FREIGHT_ROAD_WORKING_HOURS_DAILY 20 Hours Typical asset productivity in the Arabian peninsula, shared between two drivers
FREIGHT_TEU_PER_CONTAINER 1.65 TEU/container Ratio of TEU to containers, equating to approximately 1 x 20’ containers for every 2 x 40’
containers.
520
Road and rail cost models: Rail data and setup
Rail cost model Rail cost matrix in PTV Visum

• For each zone pair within the zone structure there is a rail cost
associated with it
• This represents the cost of moving one load via rail between the
two zones where terminals are available
• Costs are based upon the cost of assets (locomotives and wagons),
labour costs, fuel consumption and infrastructure maintenance
costs, asset productivity (train speeds and turnaround time) and
handling costs
• Costs also based upon wagons per train and a load factor for
container trains. Train lengths are based upon international practice
and the capability of the KSA network when volumes/train have
been optimised.
• Trains speeds are based upon typical practice internationally for
longer haul traffics (approximately 40 kph for overall journey
speeds).
• Many zones are not connected to rail
• In this case, the road cost associated with getting to and from the
rail network is also included (i.e. a local road collection and delivery
cost)
SOURCE: Source: UK Office of Rail Regulation report, ETIHAD Rail report 521
Road and rail cost models: Inputs
Rail inputs
Name Value Unit Remarks
FREIGHT_FUEL_PRICE_PER_LITRE_RAIL 0.64 SAR Current price in KSA
FREIGHT_RAIL_CREW_SALARY_ANNUAL 75,000 SAR Typical labour costs for the Arabian peninsula
FREIGHT_RAIL_DEPRECIATION_PERIOD_YEARS 20 Years Typical financed lifetime of mobile rail assets
FREIGHT_RAIL_FUEL_LITRES_PER_KM 10 Litres/km Typical consumption for this length of train
FREIGHT_RAIL_HANDLING_COST_PER_TEU 112.5 SAR/TEU Typical cost of transferring containers between modes (note one container = 1.65 x TEU)
FREIGHT_RAIL_INTEREST_RATE 10 % Combined percentage to reflect profit and finance costs
FREIGHT_RAIL_LOAD_FACTOR 75 % To maintain frequency container trains generally do not operate at 10% load factor
FREIGHT_RAIL_LOCOMOTIVE_COST 11,250,000 SAR Based on international market prices
FREIGHT_RAIL_MAINTENANCE_RATE 10 % Based on typical experience for diesel locomotives (% of new build cost)
FREIGHT_RAIL_NUMBER_OF_CREW 5 People Required to cover the full operation of the train (including rest periods)
FREIGHT_RAIL_NUMBER_OF_LOCOMOTIVES 2 Locomotives To haul 50 wagon train; shorter trains could be hauled by one locomotive.
FREIGHT_RAIL_NUMBER_OF_WAGONS 50 Wagons Based on capability of the KSA rail network
FREIGHT_RAIL_OVERHEADS_AND_INSURANCE_RATE 20 % Typical experience for rail operators
FREIGHT_RAIL_TEU_PER_WAGON 4 TEU/wagon Assumes double stack wagons able to carry 2 x 40’ containers
FREIGHT_RAIL_TRACK_ACCESS_CHARGE_PER_KM 0 SAR/km Assumes zero toll to recover initial capital cost
FREIGHT_RAIL_TRACK_MAINTENANCE_PER_KM 18.75 SAR/km Long term maintenance charge for infrastructure based upon weight of trains using the route.
FREIGHT_RAIL_TRAIN_SPEED_KM_PER_HOUR 40 Km/h Typical of similar long haul trains
FREIGHT_RAIL_TURNAROUND_TIME_HOURS 6 Hours Time taken to unload and re-load a train before returning
FREIGHT_RAIL_WAGON_COST 375,000 SAR Based on international market prices
FREIGHT_RAIL_WORKING_DAYS_ANNUAL 250 Days Typical asset productivity for rail
FREIGHT_RAIL_WORKING_HOURS_DAILY 20 Hours Typical asset productivity in the Arabian peninsula
FREIGHT_TEU_PER_CONTAINER 1.65 TEU/container Ratio of TEU to containers, equating to approximately 1 x 20’ containers for every 2 x 40’ containers
522
Port choice model: Linked to maritime network and sources
Sea port locations

Much of the international freight bound for KSA enters
through the major sea ports located within the
Kingdom as well as in the UAE. This freight is allocated
between these ports using various cost parameters.
Components making up the port choice model
• Sea ports (zones)
• Shipping service costs from each of the world regions
• Customs related “delay and administrative costs”
upon entering KSA
• Inland costs associated with road and rail freight
transport
• International freight demand from each world region
to KSA
• Land use and population data determining the inland
destination of the international freight
523
Port choice model: Costs incurred within the ports
Shipping service costs Shipping costs implemented in PTV Visum

• Used to represent the cost of moving
goods from around the World to KSA
• Based on real shipping services recorded
in the MDST Containership Databank,
currently used by UNCTAD Customs costs implemented in PTV Visum
• Costed using the MDST Containership
Business Model
• Recorded for each relevant port and split
by world region
Customs related costs
• Used to represent the relative attractivity
of a port where its customs procedures
are concerned
• Based on time cost of holding freight
during processing upon entering KSA
524
Port choice model: Inland costs
Inland costs implemented in PTV Visum

Inland costs
• Used to represent the cost of moving
goods from port to inland zone within
KSA
• Based on data as specified in the section
on cost models
• Consists of an origin-destination road
cost matrix and road/rail cost matrix
• Costs are determined using the road
and rail cost models
525
Port choice model: Allocation of cargo volumes
International demand implemented in PTV Visum

International freight demand
• Used to represent freight entering KSA
from outside of the Kingdom
• Based on port throughput values
provided by Saudi Ports Authority
official port statistics
• Allocated to world regions using MDST
World Cargo Database
• Stored in the attribute
“FREIGHT_INBOUND_CONTAINERS”
526
Port choice model: Allocation of cargo volumes
International demand implemented in PTV Visum

Port choice implementation
• Port choice is determined using a combination of
these shipping costs, customs costs and inland
costs
• A logit model is employed to represent the real Port choice model implemented in Python
world spread across the ports
𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐
−𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝
• 𝑒𝑒
• The lowest cost port, with all costs considered, will
get most of the traffic with some being allocated to
the other ports
• Logit parameter can be adjusted (UDA:
FREIGHT_PORT_CHOICE_LOGIT_PARAMETER)
527
Port choice model: Cargo distribution outputs
Port to inland zone matrix

Volumes show modelled tonnes of
containerised goods passing
through each gateway p.a. (baseline
model)
528
Mode choice & assignment: Based on relative costs
Mode choice between road and rail is based upon the relative cost of Mode choice implemented in PTV Visum
road and rail
• costs include local road delivery costs and handling
• share is based upon relative costs and is not ‘all or nothing’
Route assignment is based upon minimum cost routeing (road or rail)
The purpose of this component is to calculate the road and rail share of
cargo transport around KSA
• Between each pair of zones, there is a road cost and a road/rail cost
• These two cost options are fed into a logit model
𝑐𝑐𝑐𝑐𝑐𝑐𝑐𝑐
−𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙𝑙 𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝𝑝
• 𝑒𝑒
• The lowest cost mode will get most of the traffic with some being
allocated to the other mode
• Logit parameter can be adjusted (UDA:
FREIGHT_ROAD_RAIL_CHOICE_LOGIT_PARAMETER)
529
Mode choice & assignment: Network assignment
Base year, whole network assignment implemented in PTV Visum
530
Mode choice & assignment: Mode choice outputs and quality assessment
The outputs of the mode choice model Rail assignment (Dammam – Riyadh) Road assignment (Dammam – Riyadh)
are two matrices
• A matrix of road flows measured in
trucks per day
• A matrix of rail flows in units per day
Quality assessment
• The matrices are assigned to the
road and rail networks
• Assigned road flows are checked
against count point vehicle counts
• Rail flows are checked against
known values i.e. Dammam to Rail flows (Dammam – Riyadh): 96% of known Road flows (Dammam – Riyadh): 2% and
Riyadh volumes volume of 3.28m tonnes westbound at 20 15% difference to traffic counts
tonnes/unit, 365 days p.a..
531
Output
Freight generation
Freight by mode of
attraction category produced
appearance and attracted by zone
Output analysis
Output
Freight
Freight Segmentation
Demand OD Freight distribution
Freight tonnes
Freight allocation
between zones
models
Tonnes by mode of
appearance, origin
and destination
Port and Mode Output
choice Allocation of freight
units to ports and
Logit models modes
Network model
Links shared with
passenger network; Assignment Output
can be turned on/off Freight units on each
specific to freight Minimum cost
network link;
usage; costs for each solution System costs
transport system
532
Calibration and validation
Calibration of distribution matrix uses traffic counts to refine results

• allocation exercise shown above may exaggerate lengths of haul
• if so that would produce traffic counts that exceeded those observed
• a procedure within VISUM allows matrices to be adjusted to take this into account
 Pre traffic count calibration: 55 thousand road movements per day (based on land use,
population, port throughputs and mineral outputs)
 Post traffic count calibration: 53 thousand i.e. pre calibration is within 4% of observed
values
Calibration of mode choice achieved through adjusting the degree to which users choose
minimum cost mode to assess mode choice.
Calibration of port choice achieved through adjusting cargo delay assumptions and handling
costs.
Calibration completes the process of producing a base year model that can then be tested
through sense checks when testing forecasts and interventions.
533
Calibration and validation
Traffic count locations used in calibration
534
Freight model functionality: Forecasting and testing interventions
Forecast flows for the origin-destination matrix produced by

• estimating imports and exports from trade forecasts
• estimating development of industrial zones and population for future years
Interventions are introduced such as:
• new road and rail link
• new terminals
• policies permitting heavier road trucks
• changing fuel prices
Evaluations can be made by considering:
• impact on individual road and rail links
• volume success of certain new projects
• Overall SYSTEM costs that indicate the overall savings for the KSA economy when
scenarios compared
These impacts can then be considered against the costs involved.
535
Freight model functionality: Forecasting future freight flows
Forecasting:
• Forecasting of policy, pricing or physical interventions will be by user entries of different values
and creating new or modified links
• Forecasting over time will be based upon changes in:
– changes in land use or population at the zone level (user entry)
– changes in specific industrial/extractive outputs at the zone level (user entry)
– changes in containerised goods or general cargo entering or leaving KSA based upon
economic growth
• The impact of economic growth on the propensity to import can be based upon a global
relationship over the last 20 years between TEU imports/head and GDP for each country so
that KSA transition to a high GDP/head can be taken into account. The values reflecting that
relationship can be entered by the user. The user may also enter his own forecasts
536
Freight model functionality: Impacts of policy
User inputs implemented in PTV Visum

• Influence of implementation of transport policy
measures, e.g. different prices for rail transport
and ports, internalization of external costs for all
modes of transport, other specific measures to
promote rail and sea transport, on demand for
container, dry bulk, liquid bulk, semi-bulk
transport, modal distribution and traffic flows.
• Influence of structure of the fleet of trucks for

international and transit cargo (if the changes can
be represented in transport costs) on changes in
total transport costs, with special focus on the
reduction of small players at road freight transport
market
537
Freight model functionality: Impact of changes in Customs procedures etc.
• Influence of changes in Zone attributes implemented in PTV Visum

cross border procedures
(costs, waiting periods) on
flows of international and
transit cargo, particularly
• Influence of port
competition and related
policy measures on
through traffic
• Worked example based on
cutting user costs of
procedural delays in ports
• Impact shown on road and
rail flows at UAE border
• Port choice is determined
by all relevant costs
538
Freight model functionality: Example Jeddah – Riyadh rail landbridge
• Potential for testing new Assignment with land bridge active

assets
• Activation of the pre-
coded assets (e.g., Land-
bridge)
• Rail flows will be assigned
along the new rail route
• Analysis of the new
distribution of freight
across the network
539
Freight model functionality: Example Jeddah – Riyadh rail landbridge
ILLUSTRATIVE
• Analysis of the new Updated port volumes matrix

volumes across the
different ports
• New asset influences the
attractiveness of other
component of the network
• E.g., Port volumes have
changed – Jeddah has
gained 800,000 tonnes of
containers
540
BACKUP
541
Looking at international benchmark we found that countries mainly use three
governance archetypes based on level of centralization and integration (1/2)
A Decentralized not integrated B Decentralized moderately integrated C Centralized integrated
Transport governance archetypes
Centralized
1
Nature of the C
country’s
governance
How power is
shared between
central and
regional bodies B
in the country Decentralized
Not integrated Integrated

How are transport modes integrated 2 Transport sector integration
at a planning, delivery and transport
sector enablement level
SOURCE: Web search, expert interviews 542
Looking at international benchmark we found that countries mainly use three
governance archetypes based on level of centralization and integration (2/2)
Two main country drivers… …determines the type of transport governance archetypes
Nature of Transport Transport
country’s sector governance
Driver Definition Country governance integration archetype
Countries with a more
Nature of How power is centralized governance
Sweden Centralized Yes A system typically have an
country’s shared between
governance central and regional independent central
bodies in the planning body that
country Brazil Centralized Yes B integrates all transport
modes
Australia Decentralized Yes B
Transport sector How are transport Germany Decentralized No C

integration modes integrated Federal systems with
at a planning, United States strong regional
delivery and Decentralized No C
governments have a
transport sector more decentralized
enablement level Canada Decentralized No C transport governance
set-up
France Decentralized No C
SOURCE: Web search, Team analysis 543

Sweden has a centralized system with separate bodies responsible for
regulation and operation across all modes for whole country
Organizational structure Mandate
▪ Swedish Transport Administration responsible for

Ministry of Enterprise and long-term infrastructure planning for all modes of
Innovation Planning transport: road, rail, maritime and aviation
▪ Swedish Transport Agency Responsible for majority of

the regulations and development of the policy
Regulation framework for all transport modes
Swedish Transport Agency Swedish Transport
Administration
▪ Swedish Transport Administration monitors design and

construction of key infrastructure assets
Design &
construction
▪ Swedish Transport Agency approves designs of
infrastructure assets to ensure adherence to regulation
▪ Swedish Transport Administration is responsible for

Operation & operating and maintaining state roads and railways
Maintenance ▪ Port and Airports are typically operated and
maintained by private companies/consortiums
544
Germany has a highly decentralized system with state level entities controlling
most aspects of planning and regulation
▪ Ministry of Transport and Digital Infrastructure plans

Ministry of Transport and and coordinates projects and cooperates with political
Digital infrastructure stakeholders at EU and national level
Planning
▪ Federal states responsible for infrastructure planning
at a state level and coordinate with mode-specific
directorates
▪ Regulatory authority is shared between government

and state level agencies with strong delegation to
Land Road
Aviation Water- Regulation state level except for aviation
Trans- Const-
Direct- ways &
port ruction
▪ Aviation regulation done centrally by Aviation
orate Shipping Directorate
Directorate Directorate
Directorate
▪ Ministry of Transport and Digital Infrastructure
Design & responsible for design and overseeing construction of
construction all main infrastructure projects (rail, road, rivers/
Rail transport canals) in Germany
Rail transport
Rail transport ▪ Road, Rail and Public transport assets operated and
State-level entities across sectors maintained by state-level entities
Operation & ▪ Maritime assets operated on a central level by
Maintenance Waterways and Shipping Directorate
▪ Airports are typically operated and maintained by
private companies/consortiums
545
Brazil has a centralized planning function, with clearly distinct
mode-specific regulatory and operating bodies
▪ Ministry of Transport, Ports and Civil Aviation is

Ministry of Transport, Ports responsible for setting strategy for national transport
Planning
and Civil Aviation through establishment of guidelines for its
implementation and coordinating it across all entities
Regulators Operators
▪ Mode-specific state-owned companies (EPL, VALEC,
Design & Infraero) are responsible for the design and
construction construction of key infrastructure assets and their
connection across modes
ANAC ANTAQ EPL Infraero
▪ Mode-specific regulatory bodies (ANAC, ANTAQ,
ANTT) are responsible to set standards and
Regulation
regulations relating to safety, energy efficiency and
rates
ANTT VALEC ▪ Mode-specific state-owned companies are responsible

for the operations and administration of key
Operation &
infrastructure assets
Maintenance
▪ Maritime assets are typically operated by private
companies
546
Based on global best practices and the KSA specific context, we identified 7 design
principles to develop the transport sector new institutional framework
Design principle Description
1 Central strategy setting, planning and ▪ Convening different modes to ensure asset integration and synergetic operations across the sector
coordination ▪ Reconciling mode-specific information, with national objectives to deliver coherent sector strategies
and asset deployment plans
2 Central regulatory guidelines setting ▪ Translating sector-wide strategies and objectives into clear regulatory guidelines to be further detailed
by each mode
3 Ability to translate sector strategy/master

plan/guidelines in a mode specific agenda
▪ Authority and ability to integrate mode prerogatives with top-down direction and sector strategies/
guidelines to deliver mode specific objectives, strategies, asset plans and regulations
and regulations
4 Separation of asset ownership, operations

and regulations
▪ Reducing potential conflict of interest resulting from concentrating regulations and asset ownership,
while raising quality of assets and quality of their operation
▪ Allocating value chain activities to their most competent and natural owner
5 Central support and oversight to enable

regulators to deliver high-performing
▪ Providing the right checks and balances to ensure regulators develop adequate mode strategies and
implement them effectively and efficiently, delivering the desired results
modes ▪ Injecting capabilities (when and where needed) to support achievement of the above
6 Effective licensing, oversight and

monitoring of activities per mode
▪ Raising the regulators’ ability to monitor OpCos and AssetCos to ensure they comply with desired
sector strategies and guidelines1
▪ Raising regulators’ ability to effectively use licensing and licensing regimes to enable the above
7 Central lobbying and facilitation on behalf

of each mode at the national level (i.e.,
▪ Representing/lobbying on behalf of all modes, while being capable of opening the right doors at a
sovereign level (e.g. Ministries level an above)
ministries and above) ▪ Supporting different modes escalate and discuss key issues at a national/sovereign level
1 Including the right operating standards, service level agreements, etc...

547
The 7 design principles support a shift toward a layered and corporatized sector with
well-defined role and responsibilities across the modes
From… To…
▪ Fragmented strategy and lack of clear guidelines for the ▪ Unified and comprehensive strategy and guidelines for the
transport sector as a whole entire transport sector
▪ Decentralized and independent planning with poor integration ▪ Centralized coordination and planning for the sector to ensure
across different transport modes optimization of the network across different transport modes
▪ Combined regulatory authority and asset ownership and ▪ Regulatory authorities separated from assets ownership and
management management
▪ Divided representation at national level and vis-à-vis other ▪ Single representation at national level and in front of other
governmental entities (e.g., MoMRA, municipalities, regions, governmental authorities
etc…) ▪ ….
▪ ….
MoT
Ministry of Transport
Regulatory authorities Operating companies
MoT Roads Roads Co.
PTA SAR
GACA Airport Co.

MoT Public transport
SEAPA GACA
Roads authority
SEAPA Port Co.

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National Transport Strategy 2030

Final Document v.10

▪ Context and Aspirations

▪ Context and Aspirations

Air Sea Rail Road

SOURCE: Team analysis 3

Not covered by MoT/affiliates mandate and key strategies Partially2 covered

Saudi Aramco Security apparatus (i.e. MoMRA1 MoMRA

Heighten the sector’s performance through National

Enhance the sector’s health to ensure a

Transport Entities Key Industrial Players Documents Reviewed

Public Sector Entities Countries Benchmarked

1 Mission & vision

5 Prioritization of Mode-Specific Initiatives

6 Funding, Investment and Capital plan

▪ Context and Aspirations

Objectives ▪ Syndicate NTS2030 proposed objectives and

Transform KSA into a logistics hub Enhance liveability across KSA

Enhance fiscal sustainability Improve public entities performance

Improve public entities performance

Transforming KSA 1 Ensure efficient and effective internal (within KSA)

2 Minimize the rate of transportation accidents and

5 Optimize transport assets’ TCO through effective

delivery of new assets and efficient use and

1 Total cost of ownership

SOURCE : Team analysis 15

Rd3 Improve urban mobility, including reduce congestion

Regional ▪ Ensure efficient and ▪ Roads Density-Total ▪ 6.01 0.6

▪ HCM Level of ▪ 100%

Livable ▪ Minimize the rate of ▪ Road Fatality- ▪ 20 by 2020 (NTP 5.4

▪ % of Highways and ▪ 70% of highways ▪ Netherlands currently has 99% of its

Livable Cities ▪ Improve urban ▪ Congestion- Increase ▪ 20% London 40

SOURCE: INRIX Database, Press Search, Transport Entity Websites 19

▪ % of projects ▪ 60% by 2020

▪ Maintenance cost ▪ 601 126

1 Number to be escalated by inflation YoY starting 2019

Fiscal ▪ Realize maximum ▪ Annual CAPEX ▪ 200012

▪ Number of projects ▪ 4 by 2020 ▪ Based on specific context for MoT and

SOURCE: Local Transport Agencies, McKinsey OHI Database 22

SOURCE: European Infrastructure Report 23

7 Ensure appropriate sector governance, adequate operating models and ▪

8 Build a collaborative, high-performing, and customer-oriented organization

9 Create an external oriented organization capable of monitoring and selectively ▪

SOURCE: PTA, team analysis 24

▪ Intermodal connectivity-% of ▪ 100% ▪ Based on strategic vision of and specific context

SOURCE: PTA, Public Transport Entities Websites, team analysis 25

Livable ▪ Ensure adoption ▪ Safety accident rate (mass ▪ 2.0 by 2030

▪ Stimulate the use ▪ Public Transportation ▪ 2-3% of average daily

▪ Accessibility- Percentage of ▪ 100%

Livable ▪ Limit ▪ % public vehicles (taxis, ▪ 20% by 2020

Min standard applied to all heavy-duty vehicles

Livable ▪ Limit ▪ Clean Fleets- % of PT fleets ▪ 25% by 2025 Toronto

SOURCE: ADAA, MoT Strategy, team analysis 30

modes to ensure efficient logistics operations in the Kingdom

6 Increase private sector participation in delivering and operating transport assets ▪

7 Ensure appropriate sector governance, adequate operating models and ▪

and regulations R10

 Ensure coordination, interoperability, and interconnectivity between SRO and SAR

SRO: Establish a high 7.9

SOURCE: International Union of Railways-2015 Synopsis 33

Regional SAR: Efficiently and ▪ Passenger train punctuality- % ▪ 90% (2020)

▪ Freight Train Punctuality (Bulk) - ▪ 50% (2020)

SOURCE: Train Operator Websites 34

1 Based on proposed target for PTA