$201m high-speed Saudi trains deal cancelled

Spanish trainmaker Talgo gave no explanation for the cancellation, announced on Wednesday.
(AFP/Getty Images)
(AFP/Getty Images)


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A $201m contract for six high-speed trains in Saudi Arabia has been cancelled, according to the Spanish trainmaker under contract to deliver them.

Talgo announced the cancellation on Wednesday without giving an expanation.

The contract was awarded to Talgo in February as part of Saudi's plans to build a high-speed rail line between Riyadh and Dammam.

The Kingdom is investing heavily in ungrading infrastructure as part of efforts to diversity its economy. 

Reuters reportes the cancellation could mean Saudi is scaling back some infrastructure projects due to low oil prices.

In its statement, Talgo said the cancelled contract would not materially affect its financial projections for 2015 and 2016.

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