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Railway Services Improvement in the Saudi Arabia Report

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Updated: Feb 14th, 2021

Information Abstract

To lessen the hazards of the ordinary people arising from the use of the traditional modes of slow, inefficient, and outdated transports, some students of the XXXX University are looking forward to establishing a highly developed railway service network that can keep a significant contribution over the societies of the country. The focus of this business plan is to serve the regular passengers of the Kingdom of Saudi Arabia, the busy students of different educational institutions, the pilgrims of different nations from around the world who more often tend to be old and frail, as well as the national or international oil-exporters and other companies dealing with haulage of bulks.

Introduction

Definition, Description, and Background

Hajj is the fifth pillar of Islam and the principal pilgrimage (sacred assembly) in Islam; every Muslims who are fit in terms of physic and capable to pay should make this tour at least once; so, it is a most significant concern of the government of KSA to guarantee compliant, protected, and inexpensive haulage structure for the Muslims in the planet. Furthermore, the investment capacity of the global visitors have diminished because of unpleasant occurrence of global financial turmoil; as a result, a huge number of Muslims from the Middle East nations and the rest part of the earth remained unsuccessful to visit KSA to do the hajj; moreover, numerous pilgrims required to work hard to organize finance for air tickets.

On the other hand, numerous aged citizens today prefer to have a secure trip at reduced expenses, while some of them cannot discover the correct path; so, it is indispensable to enhance the railways of the country.

Conversely, this venture would assist countless Muslims to carry out hajj with inadequate funds, assist the entire regime to guarantee a secure journey, and boost the number of pilgrims and travelers as this plan possesses the competence to serve up about one million travelers; moreover, it is also notable that the charge of rail tickets are lesser than air tickets.

Although the perception of the expansion of the rail hauling services is a huge scheme in terms of requisite economic speculation, it is not doubtful to execute this scheme fruitfully for the small- scale private entrepreneurs. This is mainly due to the reason that Saudi Arabia is the state of World Trade Organization that provides the prospect to the overseas firms to spend and offer scientific support for the progress of transport systems; besides, the strategy makers and neighboring investors would be enough interested about the business with the view of benefits in terms of profit margins.

Purpose of the Report, and Intended Audience

The key purpose of this research is to enhance the railway services of the Kingdom of Saudi Arabia with other Middle East regions; moreover, this proposed plan will play an extremely noteworthy role in the future advancement of the entire rail network of the country apart from constructing several new railroads along with abundant trains.

The intended audiences of this rail network are the Muslims living in the Middle East nations who confront enormous predicaments to travel to KSA for the pilgrimage, as by this extremely sophisticated railway system; it would get more unproblematic and suitable for them to visit this religiously divine realm for performing hajj. Yet, together with people willing to do hajj, another intended audience for the network is the regular passengers or tourists of the country and the other Islamic countries traveling all through the day; additionally, this modern rail facility would also intend the audiences of different companies to carry crude-oil amongst several regions and haulage of additionally colossal reserves.

Methods of Inquiry

The main objective of this research is to identify the extent to which the regular passengers, pilgrims, and companies need an extremely fast, modern, and high tech railway facility to move from one place to another, visit Mecca to do hajj, and carry bulky material like oil from different sites proficiently and conveniently. As a result, it was important to survey the passengers, pilgrims, and the companies to get an idea about the market demand and to quantify the result for a better understanding.

It is notable to state that the survey form was distributed among 100 respondents, amongst which 70 interviewees were regular passengers of our university and the national and international pilgrims. Conversely, the rest 30 respondents were representatives of oil company SABIC who need to transport oil to and from different regions; a sample of the survey questionnaire is presented in the appendix of this paper. Furthermore, to carry out this study, it was essential to research numerous articles, studies, and journals as well.

Limitations of the Study

Several limitations could influence the success of this business-plan; to put simply, huge funds are required for the project; moreover, the presence of several legal issues, barriers arising from the requirement to obtain permission from the related governmental authority, and uncertainty about the ability of the engineers to completely comply with construction plans can lead to major limitations. Most importantly, there will be uncertainty regarding the issue that whether the overseas investors and financial institutions like banks and other local businesses will be trusting the private entrepreneurs owing to low- level experience to deal with such tough circumstances.

Working Definitions

The Oxford Dictionary defines railway as a path or roadway comprising of one or numerous parallel-series of iron-metal or steel-rails, elaborated and attuned to be trails for the wheels of trains, and rightfully propped on a cradle or base; conversely, the train is defined as a public-transport provided by a line of railway-cars joined together and strained by a locomotive

Scope of the Inquiry

There is a huge scope of this inquiry arising from the fact that the success of this project will not only be profitable for the Saudi Arabian government, national economy, and the entrepreneurs, but also be a great assistance for the regular passengers, national and international pilgrims, and the oil companies who want to lower their costs of transportation expenditure.

Conclusion of the Inquiry

It can be hereby concluded that besides operating as a business organization, this railway service will work as a medium of social welfare, with the Muslim communities will achieve great benefits. Such an advanced technological service will also keep significant contributions in modernizing the societies of the country in terms of hi-tech services.

Collected Data

Necessity of Technologically Advanced Railway for Passengers & Pilgrims

Definition

Railway service is continuously improving in other parts of the Middle East; however, it is now time to focus on its development in KSA for the civilians

Findings

Amongst 100 respondents, 70 interviewees were chosen from regular passengers of our university as well as the national and international pilgrims. Notably, a range of responses is received from the survey; as a result, at this stage of the paper, it necessary to look at the findings received from the conducted research.

Questionnaire for Passengers and Pilgrims

  • Question1: Do the respondents think that the traditional methods of transports are not suitable today for the busy students and the working people (especially for regular passengers and university students) –

It is significant to note that in answering the question that whether respondents think that the traditional methods of transports are not suitable today for the busy students and the working people, 60 percent has said yes, whereas 30 percent has said no and 10 percent has said no comments. This has been illustrated in the figure below to show that the majority believes the traditional methods of transports to be unsuitable:

Traditional methods of transports are not suitable today for busy people.
Figure 1: Traditional methods of transports are not suitable today for busy people.
  • Question 2: Do the respondents think that it is risky for old aged and frail passengers and pilgrims to travel through outdated, insecure, and low-speed public transportation –

Out of 70 respondents, 80 percent has said that they agree that it is risky for old aged and frail passengers and pilgrims to travel through outdated, insecure, and low-speed public transportation; on the other hand, 10 percent has said no, whereas 10 percent has said no comments. The figure below demonstrates that most of the interviewees have agreed to this proposed point:

It is risky for old aged/ frail passengers to travel through outdated transports.
Figure 2: It is risky for old aged/ frail passengers to travel through outdated transports.
  • Question 3: Do the respondents think that old aged and frail passengers and pilgrims must travel through secure transportation –

It is noteworthy to observe that to the proposed question, 70 percent has said that old aged and frail passengers and pilgrims must travel through secure transportation; conversely, 10 percent has said no, whilst 20 percent has not commented anything on this. Such great positive responses from the part of the people are visible from the following graph:

Old aged passengers & pilgrims must travel by secure trains.
Figure 3: Old aged passengers & pilgrims must travel by secure trains.
  • Question 4: Do the respondents prefer to have separate areas for both men and women for performing Salat while doing a train journey (especially for Hajj pilgrims).

It is notable that out of 70 respondents, 90 percent has said that they prefer to have separate areas for both men and women for performing Salat while doing a train journey. On the other hand, it is quite surprising that none of the respondents has said no; however, 10 percent of people have said that they do not want to comment anything on this question; the following chart shows this response:

Separate areas for men & women for performing Salat during the train journey.
Figure 4: Separate areas for men & women for performing Salat during the train journey.
  • Question 5: Do the respondents think that it is necessary to expand railway services in the country for long-term economic growth (especially for university students) –

This was one of the most crucial questions, which wanted to find out whether the railway service can keep contributions for the development of the country; it has observed that 50 percent has said yes, 20 percent has said no, whereas 30 percent has said no comments. The number of people selecting no comments was high for this question mainly because they had limited understanding regarding the proposed question:

It is necessary to expand the railway in KSA for long-term economic growth.
Figure 5: It is necessary to expand the railway in KSA for long-term economic growth.
  • Question 6: Do the respondents think that it is viable to spend a bit more for a service that is extremely speedy (like railway service in Dubai) –

This question aimed to find out whether the customers are ready to pay for better services; this was important for the reason that the financial managers of the company would construct the pricing strategy considering the response received from this section. However, it is remarkable that 50 percent has said yes, 20 percent has said no, whereas 30 percent has said no comments:

It is viable to spend a bit more for an extremely speedy service.
Figure 6: – It is viable to spend a bit more for an extremely speedy service.
  • Question 7: Do the respondents think that it is feasible to spend a bit more for a service that is scientifically sophisticated, fuel-efficient, comfortable, and elegant –

This question was also aimed for that same purpose as outlined in the question above; nonetheless, 60 percent has said that it is feasible to spend a bit more for a service that is scientifically sophisticated, fuel-efficient, comfortable, and elegant. Also, 20 percent has said no; whereas 20 percent has said no comments; the following chart shows these findings in brief:

It is feasible to spend a bit more for a sophisticated service.
Figure 7: It is feasible to spend a bit more for a sophisticated service.

Interpretation of Findings

Most of the respondents have focused on the necessity of a scientifically superior railway for passengers and pilgrims, indicating that the market demand for the service is quite high.

Demand of High- Speed Rail Service for Bulk Haulage by Saudi Oil Companies

Definition

Oil businesses are the key contributors to the development of the Saudi economy; therefore, it is essential to assists these businesses for more economic benefits

Findings

Amongst 100 respondents, 30 interviewees were chosen from the representatives of one of the most renowned Saudi Oil Companies, which is well- known as SABIC. The survey has revealed many important views provided by the representatives of companies, which is to be discussed in this part of the paper.

Questionnaire for Representatives of Saudi Oil Company

  • Question 1: Do the respondents think that the traditional methods of transports are slower, inefficient, and more costly to transport oil and other bulky materials –

The purpose of this question was to identify the need for companies for a better service. In answering this question that whether the respondents think that the traditional methods of transports are slower, inefficient, and more costly to transport oil and other bulky materials, 80 percent has said yes, whereas none of them has selected no; on the other hand, 20 percent has said no comments:

Traditional methods of transports are slower, inefficient, and more costly.
Figure 8. Traditional methods of transports are slower, inefficient, and more costly.
  • Question 2: Do the respondents think that the traditional methods of transports lower down the company revenues due to its inefficiency –

It is noteworthy that out of 30 respondents, 70 percent has said yes, whereas 20 percent has said that the traditional methods of transports do not put any adverse impact on the company revenues; however, 10 percent has not commented anything on this issue, as illustrated in the graph below:

The traditional methods of transports lower down the company revenues.
Figure 9: – The traditional methods of transports lower down the company revenues.
  • Question 3: Do the respondents think that it is necessary to have a super fast and highly efficient railway service in a country like Dubai –

There has been a mixed reaction to the answer to this question, but the majority has supported the idea proposed to them. To specify, 80 percent has said that it is necessary to have super fast and highly efficient railway service in the kingdom; whereas 10 percent has said no and 10 percent has not commented anything on this.

It is necessary to have a super fast and highly efficient railway service.
Figure 10: – It is necessary to have a super fast and highly efficient railway service.
  • Question 4: Do the respondents think that oil exporters need more railway roads to reduce costs –

It was noticeable that about 60 percent has said yes to the question put forward by the researcher, whereas 10 percent has said no and the rest 30 percent has said no comments. Such an outcome from this question is visible from the figure below:

Oil exporters need more railway roads to reduce costs.
Figure 11: – Oil exporters need more railway roads to reduce costs.
  • Question 5: Do the respondents think that all international oil exporters and local oil business needs to use this highly developed rail service rather than the outdated ones –

This was the most important question of this segment because this question directly shows whether there is a demand for the service to the oil companies; however, 80 percent has said yes, 10 percent has said no, whilst 10 percent has not commented anything on this.

All oil exporters and local oil businesses need to use this rail service.
Figure 12: – All oil exporters and local oil businesses need to use this rail service.

Interpretation of Findings

The major part of the interviewees agreed that there is a huge demand for high- speed rail service for bulk haulage amongst the Saudi oil companies.

Conclusion

Summary of Findings

The summary of the key findings discussed in the upper parts of the paper is presented below in a sequential manner. Table 1 shows the findings received from the questionnaire intended for the passengers and pilgrims:

First Topic for Investigation Question Numbers Yes No No comments
The necessity of Technologically Advanced Railway for Passengers & Pilgrims Q: 1 60 percent 30 percent 10 percent
Q: 2 80 percent 10 percent 10 percent
Q: 3 70 percent 10 percent 20 percent
Q: 4 90 percent – – – 10 percent
Q: 5 50 percent 20 percent 30 percent
Q: 6 50 percent 20 percent 30 percent
Q: 7 60 percent 20 percent 20 percent

Table 1: – Summary of Findings from the Questionnaire for Passengers and Pilgrims.

The table below demonstrates the findings received from the questionnaire intended for representatives of the oil company (SABIC):

Second Topic for Investigation Question Numbers Yes No No comments
The demand for High-Speed Rail Service for Bulk Haulage by Saudi Oil Companies Q: 1 80 percent – – – – 20 percent
Q: 2 70 percent 20 percent 10 percent
Q: 3 60 percent 10 percent 30 percent
Q: 4 90 percent – – – – 10 percent
Q: 5 80 percent 10 percent 10 percent

Table 2: – Summary of Findings from the Questionnaire for Representatives of Company.

Overall Interpretation of Findings

The importance of such a superior service was widely accepted by the respondents; this has affirmed the prospective success of the business, further motivating the entrepreneurs.

Recommendations

For this project to be successful, it is essential to ensure that the marketing department of the business follows several recommendations accordingly. As a result, both before and after this service is launched for ordinary people, the manager of the marketing department, as well as the subordinate employees, should work together in compliance with these strong recommendations.

For example, before launching the railway service for the use of the ordinary people, it is necessary to carry out several advertising programs intended to aware and build the popularity of the services amongst the ordinary audiences so that a huge number of travelers can join in right from the first day of launching. Belch & Belch (2009) pointed that there can be diverse forms of advertisement; however, TV advertisements are anticipated to be the preeminent means to catch the eye of people of all types, including old-aged male and female who wish to travel for hajj in Mecca, or busy people who need to travel place to place for sake of their job.

Doyle (1990) noted that this would also be effectual for youthful people or university students who need to travel long distances to come to university and who are the majority of inhabitants to gaze at the television; moreover, Deighton, Henderson, and Neslin (1994) has pointed that main advantage of TV advertisements is that it could reach the mass community at the same occasion.

The financial department should make regular forecasts regarding any changes in the economic environment of the country to see that whether the purchasing power of the communities are fluctuating due to the slowdown of the global economy so that it can fix the charges of the rail tickets accordingly. It is notable that although it is a luxury service, the charges of the tickets should be set to a reasonable rate to attract more travelers.

On the other hand, the workers of the department specializing in campaign designation should also construct advertisements of this modern rail service for the publication on print media. The daily newspaper is one of the most indispensable advertising means for any corporation to catch the notice of ordinary citizen; therefore, it is important to advertise this rail service and prolong remunerated advertisements together with narrations of the facilities, which are achievable while traveling through trains; moreover, the rail service must also campaign through press kits, brochures, and posters.

The employees must also organize out-of-door advertisements; which could be an enormous variety of marketing to give great assistance to accomplish the endeavor of the rail service; this could comprise fixing billboards at congested cities of Saudi Arabia, near seminaries, universities, workplaces, shopping malls, bus terminals, or airfield roads to aware an escalating number of citizen regarding the railway business.

References List

Belch, G. E. & Belch, M.A. (2009). Advertising and Promotion. (8th ed.). New Delhi: Tata McGraw Hill.

Deighton, J., Henderson, C. M., & Neslin, S. A. (1994). The effects of advertising on brand switching and repeat purchasing. Journal of Marketing Research, 16(1), 28-43. Web.

Doyle, P. (1990). Building Successful Brand: The Strategic Options. Journal of Consumer Marketing, 7(2), 5-20. Web.

Appendix

Questionnaire for Passengers and Pilgrims

  • Do you think that the traditional methods of transports are not suitable today for the busy students and the working people (especially for regular passengers and university students)?
    • Yes
    • No
    • No comments
  • Do you think that it is risky for old aged and frail passengers and pilgrims to travel through outdated, insecure, and low speed public transportation?
    • Yes
    • No
    • No comments
  • Do you think that it is necessary for old aged and frail passengers and pilgrims to travel through a secure transportation?
    • Yes
    • No
    • No comments
  • Do you prefer to have separated areas for both men and women for performing Salat while doing a train journey (especially for Hajj pilgrims)?
    • Yes
    • No
    • No comments
  • Do you think that it is necessary to expand railway services in the country for long-term economic growth (especially for university students)?
    • Yes
    • No
    • No comments
  • Do you think that it is viable to spend a bit more for a service that is extremely speedy (like railway service in Dubai)?
    • Yes
    • No
    • No comments
  • Do you think that it is feasible to spend a bit more for a service that is scientifically sophisticated, fuel efficient, comfortable, and elegant?
    • Yes
    • No
    • No comments

Questionnaire for Representatives of Saudi Oil Company

  • Do you think that the traditional methods of transports are slower, inefficient, and more costly to transport oil and other bulky materials?
    • Yes
    • No
    • No comments
  • Do you think that the traditional methods of transports lower down the company revenues due to its inefficiency?
    • Yes
    • No
    • No comments
  • Do you think that it is necessary to have a super fast and highly efficient railway service in the country like Dubai?
    • Yes
    • No
    • No comments
  • Do you think that oil exporters need more railway roads to reduce costs?
    • Yes
    • No
    • No comments
  • Do you think that all international oil exporters and local oil business need to use this highly developed rail service rather than the outdated ones?
    • Yes
    • No
    • No comments.
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IvyPanda. 2021. "Railway Services Improvement in the Saudi Arabia." February 14, 2021. https://ivypanda.com/essays/railway-services-improvement-in-the-saudi-arabia/.

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IvyPanda. (2021) 'Railway Services Improvement in the Saudi Arabia'. 14 February.

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