September 07, 2008

Gulf countries to spend USD 40 billion on railway network

Gulf News reported that more than USD 40 billion worth of rail and metro projects are planned for the Persian Gulf over the next 10 years as some of the word's most ambitious real estate projects are developed and a tax free lifestyle and plentiful jobs lure ever more migrant workers to the region. Each of the 6 Gulf Cooperation Council member states is planning its own rail network and there are plans for an integrated rail system, which its supporters say will link the countries socially, politically and economically.

Mr Jean Christophe Chuniaud Middle East business development manager for Systra said that "Cities in the Middle East are expanding at an incredible rate and so need to develop their public transport systems to keep up with demand."

Dubai will be first out of the gate, building an urban metro system that's due to open in September 2009. Initially covering a distance of 75 kilometer, the USD 4.2 billion mainly elevated system is intended to help stem the flow of vehicle traffic through Dubai's booming business districts. Commuters along that route currently rely on cars, taxis and limited bus services, with the result that traffic jams are frequent and the city's rush hour extends for most of the day. In response, Dubai is investing heavily in transport infrastructure in an effort to keep pace with rapid growth.

Abu Dhabi is planning a light rail system for 2020, the details of which are largely unknown at the moment.

Ajman, the smallest of the emirates, is also said to be in the early stages of planning a similar system. Work on a USD 3 billion, 800 kilometer long trans UAE passenger and cargo rail network from Abu Dhabi to Fujairah will also start early next year, with completion expected in 2012.

Kuwait will begin construction of a USD 14 billion, 400 kilometer long rail network next year to include a rapid transit network within Kuwait City and a national rail system with two new lines to the borders of Saudi Arabia and Iraq.

Saudi Arabia plans to spend up to USD 30 billion through 2020 by extending its rail network by more than 3,000 kilometer. The Saudi Landbridge railway will run between Dammam to the Red Sea, while the North South Railway will extend from the capital Riyadh to the Jordanian border.

GCC member states are also planning a USD 2.5 billion GCC wide network for 2015 to connect with the existing and planned railways of each member state. The line would run from Kuwait to Muscat and could eventually be extended to Yemen in the south of the Gulf peninsula.