Saudi rail deal gives boost to Spanish train sector

Saudi Arabia has ordered 20 new high-speed trains from Spain’s Talgo SA (TLGO.MC), the company and Spain’s transport minister have announced.

In a statement, Talgo said the deal adds 1.33 billion euros ($1.57 billion) to its order backlog, bringing it to a total of nearly 6 billion euros, a record. The contract also covers maintenance for the trains.

The agreement is a boost for the Spanish rail sector, which has taken a heavy hit to its reputation in the wake of a train collision near Cordoba last month that killed 46 people. The accident raised questions over whether investment to maintain the network is keeping pace with surging passenger demand.

Transport Minister Oscar Puente lauded the deal in a post on X.

“We guarantee the continuity of (state rail company) @Renfe as manager of Saudi high-speed rail until 2038 and the purchase of 20 new trains from @TalgoGroup with an injection of more than 2.8 billion euros for our companies,” he wrote.

Saudi Arabia’s rail system has been operating Talgo trains since 2018.