Union Railway, the master developer and operator of the UAE’s national railway, said that it will tender civil engineering contracts in March 2011.

Union Railway said that "Construction is planned to commence in mid-2011 following the naming of the winning company."

Mr Tudor Allen strategist with Dubai based Alembic HC told Gulf News that the National Railway is a part of the UAE's long term strategic plan to build its national infrastructure. He added that "However, investors are now looking for the revenue generation aspect of these investments in infrastructure projects. At this stage, Union Railway is pre qualifying bidders to begin the implementation of the first phase of the railway network, the 270 kilometers Shah Habshan Ruwais section."

Union Railway said that "The scope of work of this initial phase, also known as Stage 0, includes earthworks, laying down the track, building the railway bridges, installing the communications and signaling systems, as well as the construction of the depot and project offices at Mirfa."

The statement added that the next two phases will see the establishment of a network in Abu Dhabi and Dubai (Stage 1), and a network in the northern emirates (Stage 2).

Mr Richard Bowker CEO of Union Railway said that "The development of an integrated and modern railway network is critical to enhancing the current freight transport system and driving economic growth in the UAE. A large number of leading international companies have expressed interest in competing in the prequalification, thereby allowing us to select the best partner to undertake the first steps in constructing the network."

Mr Mohammad Al Asoomi, a UAE based economist, said that the railway project, when on stream, will encourage trade among countries in the Gulf Cooperation Council.

Union Railway has appointed Atkins as the Preliminary Engineering Services Consultant to oversee the execution of the three stages of the UAE’s railway network, with the reselection of the Project Management Consultant soon to follow.

Atkins has already begun work on the flagship project and the preliminary design for the Shah Habshan Ruwais line is to be completed next month. When complete, the railway will serve the whole country via a 1200 kilometers safe and cost efficient rail network. The railway will connect the UAE to Saudi Arabia via Ghweifat in the west and Oman via Al Ain in the east.

The UAE plans to have its first operational railway track in 2013 or 2014 and trains will transport granulated sulphur from the Shah and Habshan fields of the state owned Abu Dhabi National Oil Company to Ruwais.

The UAE railway network will be built according to international standards. The trains are expected to run at 80 kilometers per hour and 120 kilometers per hour for freight transport and between 160 kilometers per hour and 200 kilometers per hour for passenger service. The Union Railway was established in 2009 under Federal Law No 2.

(Sourced from www.gulfnews.com)