Serco (SRP) received more good news this week after it signed a deal, as part of a consortium, with the Saudi Railway Company to provide management and technical support to the North South Railway project. The contract, which starts immediately, is worth £120m over five years to the support services group, whose shares rose 4 per cent on the day of the announcement.
The deal is Serco's first major rail contract in Saudi Arabia - it operates rail systems elsewhere in the Gulf region - and will involve the group acting as prime contractor and providing technical support for passenger operations. Other consortium members include Freightliner Group, which will take lead responsibility for freight expertise and support. The North South Railway is one of the largest rail projects currently under development in the world.