Shipping & Logistics

Big rail schemes a focus of show

All GCC states have announced plans for rail networks

Announcements of multi-billion-dollar railway proje- cts on the heels of the iconic Dubai metro have stirred great interest in a forthcoming event dedicated to the rail sector in the region.

GulfRail 2012, the region’s first-of-its-kind exhibition and conference, will make its debut at Dubai International Convention & Exhibition Centre from April 17 to 19, 2012.

This was announced jointly by Dubai’s Al Fajer Information & Services along with IMAG of Germany, Europoint of Netherlands and Dubai World Trade Centre (DWTC), at a press conference.

Following the Dubai Metro, rail projects in the GCC region have become a point of focus with multi-billion-dollar investments being made by each Gulf state. A countrywide $11 billion (Dh 40.4 billion) railway network in the UAE stretching 1,500 km will be rolled out over the next 7-8 years.

Moreover, Abu Dhabi has revealed plans for a new rail network serving the city of Al-Ain in the emirate’s eastern region. Dubai Metro has completed its first phase with a whopping investment of $6 billion, and another mass transit network with 75 km will carry 1.8 million passengers per day by 2020.

Satish Khanna, general manager, Al Fajer Information and Services, said it would be common for a person to travel from Dubai to Jeddah or Abu Dhabi to Doha in a few hours with convenience.

Khanna added: “Abu Dhabi has joined the fray with a 131 km metro rail system which is expected to partially start in 2015. Last year, GCC transport ministers approved a feasibility study for the $12 billion GCC railway. Further, on a broader perspective, the network would extend from the GCC area to Jordan, Syria and Turkey. The next move would be a more extensive system linking up with systems providing access to Europe and Asia via Turkey.”

The Dubai World Trade Centre will host GulfRail, which will highlight the latest information and technologies in rail and tunnelling systems, and serve as a strategic networking platform for industry experts around the globe.  The launch of GulfRail at DWTC reinforces the robust state of the Emirate’s exhibitions industry and is testament to Dubai’s position as the gateway to the region, said Michael Watton, a director at Dubai World Trade Centre.

Khanna remarked: “The key driver of the rail industry for GCC is public-private partnerships. GCC is heading towards creating a reliable, effective and frequent high-speed rail network connecting GCC countries. Investment opportunities in intelligent transport systems in the GCC are huge. The rail sector in this region is growing rapidly. Many companies outside the region regard the upcoming rail sector in the Middle East as the most lucrative opportunity to do business.”

Huge upcoming projects
There are huge upcoming railway projects in the Middle East. The GCC’s rail sector is in the ascendant. In a nutshell, the GCC network will include one rail line of 1,970 km connecting all GCC countries and Qatar via a bridge. The second line of 1,984 km will stretch between Kuwait, Saudi Arabia and the UAE and end in Oman. An effective rail network will fortify the region’s position as a major global energy and trading hub.

Harald Müller, CEO, IMAG (Internationaler Messe und Ausstellungsdienst GmbH) added: “The GCC region is in need of information about the latest technologies, experiences and expertise in other countries in the world. Also, the region is interested in getting in contact with key players in the international rail and tunnel sector. GulfRail will offer an international sustainable platform for rail and tunnelling experts in the entire world to target the rapidly growing railway industry in the Gulf.”

Johan Haarhuis, managing director, Europoint BV Conference & Exhibitions, added: “The overall objective of GulfRail 2012 is to facilitate the establishment of a reliable, effective and frequent high-speed rail network connecting GCC countries. The event will mainly focus on investment opportunities and intelligent transport systems. GulfRail 2012 has great potential to be successful in the Middle East region.”

Khanna commented: “The last five years have seen the announcement of a series of transport projects by various Gulf countries, including railway projects. In order to meet the pressing regional logistics demands, the next 10-15 years will see transport projects worth $170 billion. Out of this, 85 per cent will be spent by the UAE, Saudi Arabia and Qatar. Precisely over $108 billion will be spent on the railway sector alone.”

Opportunities for suppliers
At GulfRail, international suppliers will be able to present their products and services to key decision-makers under one roof. Suppliers have the opportunity to access and assess market opportunities. Also, visitors can compare and source products and services from more than 500 international suppliers. They will keep up to date on the latest technologies and product developments as well as networking and sharing ideas with more than 20,000 global industry peers.

The effective rail network will fortify the region’s position as a major global and trading hub. Saudi Arabia is planning a railway line connecting the kingdom to Europe. It is spending $25 billion on its rail network adding 3,900 km of track through three major projects. The kingdom has already begun work on four different railway projects. Focus will be on 1000 km land-bridge, East-West Railway project, running from Jeddah and Dammam and bridging the gap between the Red Sea and the Arabian Gulf. The project will consist of two tracks, the first of which will cover 449 km and handle only passengers while the second will stretch over 556 km and will be devoted exclusively to freight. On completion it is estimated to transport more than 300 million passengers per year and one billion tonnes per year. The Saudi Rail Organisation recently issued tenders for the first construction contract on the 500 km Haramain high speed rail link between Makkah and Madinah. The $7 billion project is aimed at providing transport for Umrah and Haj pilgrims travelling between the two cities and Jeddah.

Restoration of Hejaz Railway
Khanna observed: “A rail line connecting Saudi Arabia and Europe is not a distant dream. Also, Saudi Arabia may restore and rebuild the historic Hejaz Railway that linked Damascus and Madinah with a narrow-gauge rail line. Bahrain, Kuwait and Oman have already engaged international consultants for studies.”

The Sultanate of Oman began plans for building a national railway to boost the country’s infrastructure. Oman appointed consultants to conduct a feasibility study of a 200 km railway network that will connect Sohar with Muscat and extend to Duqum.

A 1,500 km railway line costing $14 billion and linking Kuwait’s border with Iraq to the Omani port of Salalah on the southern section of the Arabian Peninsula, is on the anvil. Kuwait has plans to build a $132 billion model city in the northern part of the country which will include a rail system worth $11 billion. It will connect Kuwait with the entire GCC region.

A metro light rail network is also planned in Doha. On the other side, Bahrain is planning an $8 billion railway project stretching 184 km and will include light rail trains, monorails and other transportation systems.