Contract is valued at AED680-million and will run until 2021
The kingdom is one of a number of countries around the world, including the United Arab Emirates and India, which are looking to embrace Hyperloop technology.
The package includes all design and build, civil and track works of the 139km package A of stage two of the UAE national rail network to connect Ruwais with Ghuweifat on the UAE border with Saudi Arabia.
The event was attended by the CEO of Etihad Rail and the CEO of Etihad Rail DB, along with a number of employees of both companies.
According to media reports, Saudi Arabia has floated a tender to build a new dry port and logistic zone, as well as a King Abdullah Port railway
Within the UAE, the 605-kilometre-project will extend from the borders of Saudi Arabia all the way to Fujairah and the northern emirates
At least 25 people were killed and more than 40 injured when a locomotive crashed through the station barriers at speed, colliding with a fuel tanker, causing the fire and explosion.
The development of the network in the UAE will cost an estimated US $11billion with around 1,200km of track across the Emirates.
Saudi Arabia will become the first country in the region with a functioning Hyperloop system, says Colin Rhys, VP, Arabian Gulf, Virgin Hyperloop One.
Khalifa Port's station will be Etihad Rail's largest, and one train set will transfer a load equivalent to 300 trucks
The railway will connect Port of Aqaba with a future dry port in Jordan's Ma'an governorate
The agreement was signed by Shadi Malak, CEO of Etihad Rail, and Saeed Eisa Mohammed Al Khyeli, Director-General of ZonesCorp.
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