A TOP government official has put the cost of Haramain Railway’s terminal in Makkah, Saudi Arabia, at SR3.2 billion ($853 million), following an inspection of the site.

Transport Minister Jabara Al Seraisry also said that real estate valued at more than SR600 million ($159 million) has been appropriated for the high-speed railway linking the holy cities of Makkah and Madinah via Jeddah, according to a report in the Arab News.

The minister, who was inspecting the progress of work at the station, said that project is progressing well and according to plan, “despite the difficulties in the land acquisition process”.

The high-speed rail link will be completed in 2014 when passenger trains start running and the main station in Makkah would be ready before that, he said adding that the ministry would ensure the project was of high quality.

Al Seraisry said real estate owners would be fairly compensated for land and buildings as long as they possessed valid titles, according to the report.

Al Seraisry inspected the railway station on King Abdul Aziz Street in Madinah.

In addition to the five stations being built for the project – Jeddah city, King Abdul Aziz International Airport, King Abdullah Economic City in Rabigh, Makkah and Madinah – the railway will have an additional one at Abyar Ali in Madinah, according to the report.

Saudi Crown Prince Naif bin Abdulaziz Al Saud, Deputy Premier and Minister of Interior, approved the new station because it was the location where pilgrims traditionally change into their ihram (sacred dress) before heading to Makkah for Haj or Umrah.

The government recently signed a SR30.815 billion ($7.9 billion) contract with a Saudi-Spanish consortium – the Al Shouala Company JV – for implementing Phase Two of the project. When completed, the railway will represent a quantum leap in the kingdom’s transport sector.

The final phase of the project includes construction of railway tracks, installation of signals, telecommunications, electrification system, operational control centre, procurement and manufacture of rolling stock, and maintenance of rolling stock and the entire infrastructure for a period of 12 years.