Mr Richard Bowker CEO of government owned Union Railway as saying that the United Arab Emirates' 1500 kilometer planned rail network linking the country's 7 sheikhdoms will cost up to AED 40 billion with the contract for the phase I of the project likely to be awarded by the end of the year.
Mr Bowker said that we think that the cost will be in the order of AED 30 billion to AED 40 billion. He said that the network will include a freight and passenger rail line extending from the emirate of Abu Dhabi's Western region through Dubai, Sharjah, Umm Al Quwain, Fujairah, Ras Al Khaimah and Ajman. Union Railway is also looking into the feasibility of building a high speed passenger rail between Abu Dhabi and Dubai, but plans are in the very early stages. The entire project is expected to take 7 years to complete.
He said that the Phase I of the project will be a 270 kilometer freight rail line linking Abu Dhabi's Shah sour gas field to Ruwais on the Persian Gulf coast. ConocoPhillips and Abu Dhabi National Oil Company signed a joint venture agreement in July 2009 to develop the Shah sour gas project, seen as a key step for Conoco to establish a bigger presence in the energy rich Middle East.
Mr Bowker said that Union Railway will hold an outreach session for companies interested in bidding for the first contract on March 24 with the tendering process expected in the latter part of year. We aim to award the first contract by the end of 2010. He added that the sour gas rail the UAE's first freight line is expected to be completed by the end of 2013.
Mr Bowker said that Union Railway is looking at all financing options for the project and that a decision will be made in due course. He declined to comment on whether the oil rich emirate of Abu Dhabi will foot most of the costs, saying that "I don't want to be drawn on that. It's a federal company and a federal project."
Dubai opened the first phase of 75 kilometer, mainly elevated, metro system to help stem the flow of vehicle traffic through the city state's main business districts. The remainder is scheduled to open later this year. Earlier this year, Dubai's Roads and Transport Authority was forced to issue a statement saying construction of the remainder of the light rail system was on track and that all financial commitments due to contractors on the project would be met following news reports that some companies hadn't been paid.
Mr Bowker said that such reports are unlikely to impact international interest in Union Railway's projects and that a lot of overseas companies are expected to bid for work. This entire rail world has been beating a path to our door. We expect a high level of interest from everywhere.
(Sourced from Dow Jones)
