Alsa secures 10-year contract for long-haul coach routes in Saudi Arabia

Spanish public transport company Alsa has announced that it has secured a 10-year contract with the Transport General Authority (TGA) in the Kingdom of Saudi Arabia. This significant agreement will see Alsa operating 27 long-haul coach routes, connecting 80 destinations in the southern region of the country.

These newly introduced routes are poised to facilitate the transportation of an estimated 1.5 million passengers annually. In order to ensure smooth and efficient operations, Alsa will deploy a fleet of 129 coaches and employ a workforce of approximately 600 dedicated professionals.

Alsa’s entry into the Saudi Arabian market comes as part of a strategic joint venture with the Saudi Public Transport Company (SAPTCO), the principal intercity transportation operator in the country. The collaboration is anticipated to generate substantial revenues, with the contract expected to yield a total of €500 million over its 10-year duration, with revenue generation closely tied to ticket sales.

The implementation of these long-haul coach routes signifies a progressive move by Saudi Arabian authorities to enhance regional connectivity and raise the standards of intercity transportation services. This initiative opens doors for qualified operators with a proven track record of technical expertise.

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Francisco Iglesias, CEO of Alsa, expressed his enthusiasm for the company’s international expansion, stating: “The commencement of operations in Saudi Arabia is a pivotal milestone in our journey toward becoming a global leader in mobility services. It is a testament to our expertise and technological innovation in the management of public contracts.”

In addition to its endeavours in Saudi Arabia, Alsa has set its sights on further international expansion. The company anticipates launching metropolitan transportation services in Porto by the end of 2023. This expansion follows the successful initiation of services in Lisbon in 2022, solidifying Alsa’s significant presence in Portugal’s two major cities.

The Alsa-SAPTCO joint venture, along with its commitment to enhancing transportation services globally, is set to usher in a new era of connectivity and convenience for passengers in Saudi Arabia, while also contributing to the company’s growing international footprint.