China Railway expects $623m loss on Saudi project

China Railway Construction Corp. (601186.SH, 1186.HK) said Monday that it expects to absorb a loss of US$623.3 million on a rail project in Saudi Arabia, Reuters reported. CRCC said the cost of building the A1-Mashaaer Al-Mugadassah metro light rail project will exceed the estimated figures when it originally signed the contract. The project is scheduled to begin operation in November. The deal was signed in 2009 during a visit by Chinese President Hu Jintao to Saudi Arabia. The railway is intended to alleviate congestion during the Hajj, when 3 million Muslims make their annual pilgrimage to holy sites in the country. The contract was originally to be handled by CRCC in cooperation with Alstom (ALO.Euronext).