Dubai - Arab Today
A new deadline of 2021 to connect the six Gulf states by rail is a “moving target,” a UAE minister said on Tuesday, raising further doubts about the stalled project.
Gulf officials earlier this year acknowledged that a 2018 completion date would not be met for the 2,100-km passenger and cargo network, which is to stretch from Kuwait down the Gulf coast and through the UAE to Oman, with links connecting Bahrain, Qatar and Saudi Arabia.
The six states, which make up the GCC, have agreed “in principle” to 2021, UAE Minister of Infrastructure Development Abdullah bin Mohammed Al-Nuaimi said at a rail industry conference in Dubai on Tuesday.
Asked whether that date might change, he replied: “I don’t know...It’s actually a moving target.”
The project, which would cost tens of billions of dollars and could transform trade and transport in the region, has faced technical and bureaucratic obstacles, and stalled as state budgets tightened because of low oil prices.
In January, the UAE’s state-backed Etihad Rail suspended a tender to build a 628 km second phase of the UAE’s network, which would have connected the country with Oman and Saudi Arabia.
That prompted Omani officials to say that rather than focusing on the regional network, they would concentrate on building a domestic rail line linking the ports of Salalah, Sohar and Duqm. Last month, Oman invited international tenders for consultancy work on the project.
Bahrain has pushed back the completion date for its rail link to Saudi Arabia to 2023, Mariam Jumaan, Undersecretary of Land Transport and Post at Bahrain’s Ministry of Transportation, told reporters at the conference. Phase two, linking Bahrain to Qatar, will come “sometime” after that, she said.
If sufficient funding can be secured, the GCC Railway Network can be a success, industry analyst said. However, shared accountability is also a prerequisite if the project is to avoid permanently missing its connections, they added.
According to officials, the enhanced connectivity that Etihad Rail will deliver will effectively bring businesses closer together, facilitating more efficient trade, extending geographic markets and making a greater labor force available.
There are numerous benefits brought about by Etihad Rail, officials say. The direct economic benefits delivered by the Etihad Rail network include freight cost savings, business travel time savings, along with other economic remunerations.
These economic benefits will support businesses, commuters and other travelers across the region. The project will also contribute to tourism and the wider UAE economy.
Analysis show that the economic benefits that Etihad Rail will bring are shared across all seven emirates. It will support exports as well as increased inward investment.
It will also provide employment opportunities and increase incomes of business and property owners, as well as their employees.
Source: Arab News