NEOM, the futuristic megaproject being developed by Saudi Arabia in the country’s northwest, has terminated Webuild’s contract for the Connector High-Speed Line, a high-speed rail line that was to link OXAGON to the linear city THE LINE. The decision comes at a time when international media are reporting that Saudi Arabia is postponing and scaling back some of NEOM’s most spectacular components, including the linear city THE LINE.

Webuild announced that NEOM has exercised its right to terminate the contract for the Connector High-Speed Line, a high-speed rail project planned for the Sharma area in Tabuk Province, along the northern coast of the Red Sea. The termination of the contract will take effect on May 27, 2026. At the time of termination, work will have reached approximately 20% completion, and the remaining work attributable to Webuild is estimated at approximately EUR 1 billion.

The Italian company notes that the project was already suspended and that no revenue from this contract was expected for the current year.

The High-Speed Line Connector contract was intended to be a key component of NEOM’s rail infrastructure. The project involved the construction of a 57 km line, which was to connect OXAGON, NEOM’s planned industrial hub, with THE LINE, the linear city promoted as one of the central components of the Saudi megaproject.

The contract included the design and construction of civil works for two high-speed rail lines and two freight lines, as well as viaducts, road bridges, and road and rail overpasses. When the contract was awarded in 2023, its value was approximately EUR 1.4 billion, and Webuild led the joint venture with local partner Shibh Al Jazira Contracting Company (SAJCO).

Read the full story at Railway Pro