The Gcc Rail Opportunity
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development > tag this ON TRACK THE GCC RAIL OPPORTUNITY The ambitious GCC railway project is a proposed regional link to connect the Gulf Cooperation Council (GCC)-member states and boost transport services across the region. Experts in rail transport discuss the rail infrastructure needs of the GCC countries in a report compiled by Sindhu Nair. 58 > QATAR TODAY > NOVEMBER 2013 he concept of public transport is Saudi Arabia has the greatest potential new to the Gulf countries. Public with projects worth QR182 billion (USD50 transport used to be confined to billion) due to be completed by 2025, ac- taxis and in 2005, when Mowas- cording to MEED Projects. Rail, metro, alat introduced buses to Qatar tram and BRT projects in Qatar worth for the first time, a mode of travel more than QR109.2 billion ($30 billion) are Tthat has now become popular for labourers scheduled to be finished by 2020, ahead of and low-income groups, it was seen as a big the Qatar 2022 World Cup. The third big- step in public transport development. But gest rail market is the UAE, where QR98.28 that was long before Qatar became a hive of billion ($27 billion) worth of projects is due activity with the 2022 World Cup projects for completion by 2030. work that has now begun in earnest. But the most interesting of all the devel- Public transport is the next stage of in- opments is the talks and even some action, frastructure development that all of the about having an integrated rail network be- Gulf countries are actively investing in. tween the GCC countries. But one of the biggest challenges facing the Talking about this project, Marco governments of the GCC countries will be Stegher, Project Manager of the Arab Rail- to persuade their respective citizens to use way Study, says the ambitious GCC railway the public transport systems. According to project is a regional link proposed to con- one expert, that is not an unachievable task nect the Gulf Cooperation Council member given the success model of the first metro states, to boost transport services across system in the region, the Dubai Metro. the region. It is splanned that the route of Qatar is set to spend up to QR550 billion the GCC train project should start from Ku- (USD150 billion) on infrastructure projects wait, amd run via Dammam in the Kingdom over the next nine years as it starts prepar- of Saudi Arabia, to the Kingdom of Bahrain ing for the 2022 FIFA World Cup, according over the proposed causeway to be built par- to HE Yousef Hussein Kamal, the former allel to the King Fahd Causeway, and from Minister of Economy and Finance. Dammam to Qatar through Salwa. The GCC A whopping 40% of its budget between train would also link Qatar with Bahrain via now and 2016 is allocated to infrastruc- the Qatar-Bahrain Causeway to be estab- "Qatar is ideally ture projects, including QR40.04 billion lished between them, and run from Saudi ($11 billion) on a new international airport, Arabia through Al Batha to the United Arab located to benefit QR20.02 billion ($5.5 billion) on a deep-wa- Emirates (Abu Dhabi – Al Ain) and then end from increased trade ter seaport and QR3.64 billion ($1 billion) up in Oman across Sohar to Muscat. The across the region. A rail for a transport corridor in the capital. It has total project length is approximately 2,116 also allocated QR182 billion ($50 billion) km, and the length of the track inside the network will only serve to upgrade its transport infrastructure, in- Kingdom of Saudi Arabia totals 663 km. to make it easier to do cluding new rail and metro systems. Bids for implementation of the GCC rail business across borders Figures provided by MEED Projects project, have already been invited, the de- show that this phenomenon is not seen sign stage of the project has already com- and help to strengthen only in Qatar – there are 108 separate rail- menced, and it is expected to be completed the country's economic way, metro, monorail, tram and bus rapid in 2017. transit projects under bid, under design or “The GCC network would support eco- growth." under study in 14 MENA countries. More nomic diversification, encourage invest- DR AMJAD BANGASH than 50 of them with a combined value of ment, boost trade and create jobs,” says Managing Director, almost QR509.6 billion ($140 billion), are Stegher. Rail Bechtel Ltd (UK) in the GCC. Opportunities in the Middle East and Value of MENA rail projects by Value of MENA rail projects by status (in $ million) completion date (in $ million) 120,000 100,000 100,000 80,000 80,000 60,000 60,000 40,000 40,000 20,000 20,000 Under bid Design Study 2015 2016 2017 2018 20192020 2021 202220252030 QATAR TODAY > NOVEMBER 2013 > 59 development > tag this Value of MENA rail projects to 2030 by country ($ million) 60,000 50,000 40,000 30,000 20,000 10,000 UAE Iraq Iran yria Qatar Egypt Oman emen S Algeria Bahrain Jordan Y Morocco Lebanon Saudi Arabia North Africa (MENA) region's QR819 Dr Amjad Bangash, Managing Director, billion ($225 billion) rail, metro, tram and Rail atBechtel Ltd (UK), strongly defends bus rapid transit (BRT) capital investment the project saying that with one of the programme to 2030 were highlighted at the fastest growing economies, Qatar is home MEED MENA Rail and Metro Summit held to one of the world’s largest gas reserves in Abu Dhabi on October 29. The partici- and that transportation, construction and pants discussed with Qatar Today the huge property will also boosts its economy. opportunity this presents. Yiwen Wang, Chief Technology Officer, MEA Government and Enterprise Business A gap to fill of ZTE, a leading provider of telecommuni- Stegher gives us an outline of the work cations equipment and network solutions, planned in Qatar. “The proposed Qatar agrees with Bangash’s views, reiterating, National Railway Network is an integral “The pace at which Doha is growing would part of the future integrated multi-modal necessitate a rail network. As it is, more "Operating practices, transportation currently being considered, than 200 new cars rush to roads every day, which also includes a modern metro system and the expat worker population is expect- customs and in Doha and light rail transit schemes in ed to double in the next five to six years. immigration policies other strategic city locations,” he says. With the current limited road transport and other divisive These national and international trans- capability, a rail network is a must infra- portation systems together form the Qa- structure to support the country’s further issues that could slow tar Railways Development Programme development.” the development of a (QRDP) and will provide a solid backbone to “A regional rail network can support di- encourage economic development and sup- versification and growth in non-oil based GCC network should port the foreseen population growth. This sectors,” says Bangash,, “Helping to make be also tackled from a will reinforce the role of Qatar in the region manufacturing and mining more cost supranational level." as an international business hub, also con- competitive, and supporting the container sidering other ongoing developments such trade in major ports. Qatar is ideally locat- as the West Bay area, Lusail, Education ed to benefit from increased trade across MARCO STEGHER Project Manager, City, the new Port Mesaieed, and the New the region. A rail network will only serve to Arab Railway Study Doha International Airport. The integrated make it easier to do business across borders railway network aims to fulfil short-, medi- and help to further strengthen the coun- um-and long-term demands related to pas- tryís economic growth". senger and freight transport in Qatar and Siemens Infrastructure and Cities, Mid- from other GCC member states. dle East, CEO, Joerg Scheifler feels that to “Major sections will be ready for the 2022 realise Qatar’s National Vision 2030 and FIFA World Cup, allowing mobility from build a sustainable environment for the fu- New Doha International Airport (NDIA) ture, creating an environmentally-friend- and neighbouring countries to Doha,” says ly and efficient public transport system is Stegher, stressing on the importance of crucial. the public transport system as a means of transport from and to neighbouring Arab The GCC challenge countries during the World Cup. There will be challenges building a rail net- Whether Qatar has the need for such in- work between the GCC countries. A GCC frastructure upgrades given its compara- network will involve more challenges than tively small population, of which a majority individual countries' rail works as the proj- are migrant workers, is another question ect will involve a lot more of interaction and that analysts have asked. cooperation among the GCC states while 60 > QATAR TODAY > NOVEMBER 2013 THE DUBAI SUCCess MODEL eflecting on the Dubai Metro model, “The Dubai metro was the first metro Stegher feels that “they have done it system to be built in a Gulf country and the right way”. The Road and Trans- there were many risks on the success of Rport Authority of Dubai (RTA) is the project and mostly the challenges aiming to reduce the use of private vehi- of persuading the Emirate’s car drivers cles and increase the use of public trans- to take public transport were one big port to 30% by 2020. challenge. With the usage on the public The Dubai Metro has been open since transport growing by huge rates in three 2009 and statistics from RTA report that years, it suggests that changing commut- Red and Green Line passengers are grow- ersí mentality may be hard, but possible.