• This document must be read in conjunction with Guideline 01: The Main Document, which addresses all definitions and standards used in the set of documents and guidelines.

Clause 5.2, paragraph (a) of the operating license conditions for railways requires licensees to prepare and provide the Transport General Authority with an implementation plan that specifies what the licensee must do to comply with the purpose outlined in license condition 2.2. The implementation plan will specify the inputs and outputs through which the Transport General Authority monitors the licensee's obligations. This document provides guidance on the content of that document and the procedures related to its preparation.

All licensees, including franchise holders, are required to prepare and submit an implementation plan with its contents and structure within three (3) months of the agreement with the Transport General Authority.

The implementation plans must match the duration of the license as a minimum, as specified in part 2 of the operating license. In cases where the licensee believes that the plan requires a longer timeframe, they will be asked during the negotiation and consultation process to provide an alternative duration. Additionally, when renewing the license, a new implementation plan will be required.

• The Transport General Authority will consult with the licensee and will take into account any commitments made regarding the preparation of the plan and its submission to the Authority for approval. Considerations may include aspects such as:

  • - The duration of the plan.

  • - The contents of the plan, including the type and format of information to be provided.

  • - Any concerns regarding confidentiality.

• The consultation will begin once the Transport General Authority officially addresses the licensee with a request to submit their views on the implementation plan. The licensee must submit their statements and commitments within a period not exceeding one month from the receipt of the Authority's letter.

• Upon the approval of the Transport General Authority on the contents of the plan, the licensee will have an additional three (3) months to prepare and submit the complete plan.

• The Transport General Authority has the right to object to the contents of the plan or strategy or any other related document when the following reasons are available:

• - If it conflicts with Saudi regulations, national interest, or any other conditions of the granted license.

  • - Failure to meet the requirements stipulated in License Condition 2.2.

  • - It will not provide the required railway services or access to reasonable levels or to a high degree of quality or efficiency.

  • - The plan has not convinced the Transport General Authority that it includes sufficient or adequate information to monitor the licensee's obligations.

  • - Or that the plan conflicts with the governing franchise conditions.

The Transport General Authority encourages transparency and welcomes licensed entities to publish their implementation plans on their websites. However, the Authority will consider, in certain cases, the admissions and commitments made by the licensed entities during consultations, as publication in some instances may seriously affect or harm the interests of the licensee. This includes, for example, the following:

• - If the publication of the plan may reveal sensitive financial or commercial information that could lead to the licensee being charged unfavorable prices by their suppliers and contractors.

• - If the publication of the plan may result in disclosing commercially confidential information to the licensee's clients, such as offers and proposals to enter a new market, unless the Transport General Authority believes that there is no threat to the principles of fair competition as stipulated in Saudi regulations.

• - If the publication of the plan may conflict with the terms of the franchise or could be considered against the national interest.

However, if these commitments and admissions are accepted, the Transport General Authority expects the publication of the underlying document, taking into account the deletion of sensitive and significant information from the document.

The Transport General Authority specifies in this section its requirements for the contents of the implementation plan, and licensed entities will be encouraged to propose the methods through which the conditions of their licenses are implemented and monitored.

The licensee must carry out its licensed activities to ensure the implementation of the following to the greatest extent practically possible, taking into account all relevant cases and circumstances:

• - Safe operation and maintenance of the railways.

• - Renewal and replacement of the railway.

• - Improvement, enhancement, and development of the railway.

Furthermore, licensed entities must do so in accordance with the best international practices and in a safe, efficient, economical, and timely manner to meet the reasonable requirements of the users of the services provided by the railways and the financiers of railway services, especially concerning the following:

• - Quality and capacity of all railway assets.

• - Performance of railway services.

For more information, please refer to the Transport General Authority Guide No. 12: Performance Management and Compliance.

In the implementation plan, the licensee presents:

• - A set of objectives to monitor the daily operational performance of the trains, addressing these objectives regarding punctuality and reliability (train performance according to the schedule and the criteria and reasons for cancellations or trains that stop completely before reaching the intended destination). This requires providing a comprehensive explanation and clarifications.

• - A description of how data on punctuality and reliability is collected, for example, conducting reporting at the stations which is automatically captured by the signaling system... etc.

• - A measure of the amount of time available in the day for train operations and the amount of time used for infrastructure maintenance activities.

If the licensee manages a concession with clearly defined performance objectives, they must present the objectives they are currently working on. Nevertheless, the authority focuses on addressing the three aspects specified above and will require monthly reports on actual achievement.

Licensees may choose to use a similar set of objectives employed in passenger services unless directed otherwise by the Transport General Authority. They may also alternatively apply the objectives used to monitor contracts with clients, including, for example, the productivity of container transport per day and the tons delivered in a week, and so on. The Transport General Authority always expects the processing of the following areas and will require monthly reports on actual achievements:

• - Comparison and measurement of the operating trains against the train plan and schedule.

• - Measurement of the actual output achieved compared to customer requirements.