The total value of railway projects in the GCC countries (rail, metro, tram, and stations) is estimated to be $79 billion between 2011 and 2020, Kuwait-based Markaz Financial Center said in a new study. This includes the $30 billion GCC rail network, to be shared among the member countries. For the roads sector, the total value of “ongoing” projects amount to almost $18 billion. The aggregate length of roads available in the GCC is 291,313 km. Of this, 75 percent is in Saudi Arabia, and 16 percent is in Oman. These two countries are the two largest countries of the GCC as per area. The rest of the countries have a combined “road share” of approximately 7 percent. At present, expenditure on the transportation sector has primarily been focused on road networks, primarily due to significantly higher density of motor vehicles per kilometer of road in some of the GCC countries, the study said. Among the six GCC countries, four - UAE, Kuwait, Bahrain, and Qatar - have significantly higher traffic density in comparison with the rest of the countries, it added. Also, the higher density of vehicles per kilometer of road is because of the low road density. Except Bahrain, the rest of the countries in the GCC have significantly low levels of road density, the study said, noting that the majority of countries in the GCC fare poorly when compared to developed nations. The US and UK have road densities of 0.68 and 1.72 respectively. Moreover, the lower road density, a higher proportion of motor vehicles, and the driving culture are the reasons behind higher instances of road accidents, the study noted. The fatality rates in the majority of the GCC countries are significantly high. In the US and the UK, the number of fatalities per 1,000 people is 13.7 and 19.1 respectively. It is 30.7 in Oman and 26.3 in Saudi Arabia. Even compared to Brazil, Russia, India, China (BRIC), three of the GCC countries (Oman, Saudi Arabia, and UAE) have higher fatality rates, it added. Against this backdrop, Markaz said in the study that a good rail network in GCC countries will help reduce the congestion on roads and concern over the current capacity, though the quality of roads is significantly better than other emerging markets. Dubai has spearheaded the GCC in unveiling phase I of its metro. Other countries are now planning or discussing their versions of the metro. They are also planning for a pan-GCC rail network. The updated value of this project is considered to be around $30 billion and will consist of a first rail line connecting all the GCC countries and Qatar via a bridge. The second line will stretch through Kuwait, Saudi Arabia, the UAE, and end in Oman. Etihad Rail, the UAE's national rail network, will eventually link to the city metros and the wider GCC to boost connectivity across the region and help regional tourism and cross-border trade. “Once completed (in 2015), it is expected to transform logistics and transport not only in the UAE but also the wider GCC region,” said Frost and Sullivan's Srinath Manda, program manager for transportation and logistics practice for the Middle East, North Africa and South Asia.” He added that Etihad Rail is expected to provide a safe, efficient and sustainable transport network that will link all corners of the country and eventually link the UAE to other countries in the GCC with 1,200km of track. The network is expected to connect the UAE to Saudi Arabia via Ghweifat in the west and Oman via Al Ain in the east. “The rail network is designed to facilitate rapid surface transport movement in the country for cargo in the initial stages and then the passengers in the later stage,” Manda further said. “Thus it is expected to open up new trade corridors for enterprises and travel opportunities for individuals.” Likewise, Abu Dhabi's two passenger rail projects developed as a part of its Abu Dhabi 2030 Program, namely the Abu Dhabi Metro and Abu Dhabi Light Rail Transit, are expected to provide a highly efficient and well-integrated transport network connecting all the key locations in the UAE, according to Frost and Sullivan's analysis. Manda said the project would help to connect the places such as the airport, the central business districts and other commercial zones, plus suburban areas. While the capital's light rail system is expected to be completed by 2015, its metro rail system is expected to be completed by 2021.
