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First Train on UAE Rail Network in 2014

The 1,100 km-long rail network, to be constructed at an estimated cost of Dh30 billion, will also be part of the wider GCC railway project and will connect the UAE with neighbouring Saudi Arabia and Oman, apart from creating a link between the emirates.

It will connect the UAE to Sohar in Oman through Al Ain. The railway will also connect the UAE with Saudi Arabia through the Ghuweifat border and in turn to the greater GCC and MENA regions. Union Railway will thus offer two routes that provide alternative access to the Indian Ocean, Al Nowais said in his keynote address at MEED’s Middle East Rail Projects Conference.

The network will be for diesel trains carrying both the cargo and passengers, though the focus will be on freight. Speed of the freight movement on the track will be 80-120 kilometres per hour while the passenger trains will be running at a speed of 160-200 kilometres per hour.

According to estimates, three million containers will be needing transport across the UAE by 2015, Al Nowais said. The proposed railway is expected to transport 30 million tons of bulk and break bulk by 2015, including rocks, aluminum, cement, iron ore, steel and other products. “We are also expecting substantial demand for passenger traffic as well on the route,’’ he said.

Talks with ADNOC

The Chairman announced that Union Railway is in advanced stages of discussion and coordination with Abu Dhabi National Oil Company, or Adnoc, to explore transporting over seven million tons of granulated sulphur per annum from the Shah and Habshan oil and gas fields into Ruwais, through the railway system .

“This important strategic initiative will fulfill several strategic objectives. Firstly, it will support Adnoc’s ongoing investment program in the Shah and Habshan oil and gas fields. It will also contribute to the development of the oil, gas and petrochemical industries in the country. Finally, it will help to accelerate the development of the Western Region, in line with Abu Dhabi Vision 2030 . This section of the railway will be fast-tracked to meet Adnoc’s schedule and requirements,’’ he said.

According to him, there will be huge demand for granulated sulphur from the fast growing countries like China and India.

Contracts in 2010

He also disclosed that the contracts for the railway network will be awarded in 2010. Alignment of the railway line in Abu Dhabi has already been completed and that of Dubai and the Northern Emirates are progressing on track.

The Company has appointed a traffic study consultant to review traffic flows in the UAE, and update and validate previous studies. Currently the company is carrying out environmental, topographical, geotechnical and hydrological studies.

Efforts are on to hire an international consultancy firm to help to lay out the company’s five-year strategy and implementation plan.

“The firm will also be asked to develop our operating and business model and benchmark that against other world-class rail organisations.’’

The company was exploring the option of forming separate entities for the railway infrastructure and operation of trains. Similarly the company was also looking at different options to fund the project like the project finance, BoT, and export credit, he disclosed.

· ramavarman@khaleejtimes.ae