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The Gulf Cooperation Council for the<br />

Arab States - Secretariat General<br />

<strong>GCC</strong> Railway Project<br />

Regional Integration Perspective<br />

Railway Industry Forum<br />

Abu Dhabi – 18-19 April, 2012<br />

0


Topics<br />

‣ <strong>GCC</strong> Railway Project - Status<br />

‣ A Regional Integration<br />

Perspective<br />

‣ Project Implementation –<br />

Next Phases<br />

‣ Key Challenges and<br />

Opportunities<br />

‣ Lessons Learned – Way<br />

Forward<br />

‣ <strong>GCC</strong> Railway Extension <strong>to</strong><br />

Yemen<br />

1


<strong>GCC</strong> Railway Project - Status<br />

‣ Feasibility study concluded 2009. Endorsed by <strong>GCC</strong><br />

30 th Summit (December 2009).<br />

‣ Project is Economically and Financially feasible:<br />

– (<strong>GCC</strong> MS Governments pay infrastructure capital costs<br />

based on railway length in each MS).<br />

‣ Concession Operations & maintenance <strong>to</strong> Private<br />

Sec<strong>to</strong>r.<br />

‣ Railway links <strong>GCC</strong> MS – Kuwait <strong>to</strong> Muscat with a<br />

Proposed New Causeway between Saudi Arabia and<br />

Kingdom <strong>of</strong> Bahrain.<br />

‣ Total length estimated 2177 km single track mix use –<br />

passenger and freight transport.<br />

2


<strong>GCC</strong> Railway Project - Status<br />

‣ Total capital cost estimated:<br />

– US$15.5 billion (200 km/hr –Diesel Traction).<br />

– US$25.6 billion (350 km/hr –Electric Traction).<br />

‣ Project expected <strong>to</strong> be operational about 2017.<br />

‣ Project will:<br />

– Generate significant employment for <strong>GCC</strong> Nationals.<br />

– Promote social integration & economic development &<br />

growth.<br />

– Advance <strong>GCC</strong> –SG Initiatives on Common Market and<br />

Cus<strong>to</strong>m Union & Trade Facilitation.<br />

– Support building national railway industries in the <strong>GCC</strong> MS.<br />

– Alleviate congestion and reduce maintenance costs on road.<br />

– Add valuable and integrated mode <strong>of</strong> transport.<br />

3


<strong>GCC</strong> Railway Feasibility Alignment<br />

<strong>GCC</strong> Railway<br />

Feasibility Alignment<br />

4


Project Implementation – Next Phases<br />

‣<strong>GCC</strong> MS are well advanced in developing<br />

the Detailed Engineering Designs –<br />

Expected <strong>to</strong> be Completed by 2012.<br />

‣Construction is expected <strong>to</strong> commence by<br />

<strong>GCC</strong> Member States (MS) about 2013/2014<br />

and completed by about 2017.<br />

‣A “<strong>GCC</strong> Railway Authority” is expected <strong>to</strong><br />

be formed <strong>to</strong> oversee the overall<br />

implementation <strong>of</strong> the project and<br />

coordinate and organize with <strong>GCC</strong> MS.<br />

5


Project Implementation – Meeting Needs<br />

‣<strong>GCC</strong> MS formed a Steering Committee<br />

(Financial and Technical) <strong>to</strong> coordinate with<br />

the <strong>GCC</strong>-SG <strong>to</strong> oversee the Implementation <strong>of</strong><br />

the <strong>GCC</strong> Railway.<br />

‣Several <strong>GCC</strong> MS have signed contracts for the<br />

design and construction <strong>of</strong> the National<br />

Railway and Metro Plans including the <strong>GCC</strong><br />

Railway project.<br />

‣<strong>GCC</strong>-SG Transport Department is<br />

strengthening its capacity forming a PMU<br />

staffed with skills required <strong>to</strong> implement the<br />

<strong>GCC</strong> Railway project.<br />

6


Project Implementation – Meeting Needs<br />

‣<strong>GCC</strong>-SG continues <strong>to</strong> be the focal point for the<br />

overall organization and communications with<br />

the <strong>GCC</strong> MS on the implementation <strong>of</strong> the <strong>GCC</strong><br />

Railway.<br />

‣<strong>GCC</strong> MS established Railway Companies<br />

and/or Authorities <strong>to</strong> implement the <strong>GCC</strong><br />

Railway and National Railway Plans.<br />

‣Agreement with World Bank for continued<br />

Advisory Services in the Railway/Transport<br />

Sec<strong>to</strong>r.<br />

7


4 Key Challenges - Opportunities<br />

1. Technical:<br />

‣ Finalize the alignment cross Boarders linkage<br />

Points.<br />

‣ Use <strong>of</strong> Common Standards and Specifications.<br />

‣ Interoperability and regional integration <strong>of</strong> the<br />

<strong>GCC</strong> railway.<br />

‣ Design and Construction – Packaging and<br />

Implementations schedule(s).<br />

2. Means <strong>of</strong> Procurements:<br />

‣ Packaging for Design, Construction, &<br />

Operation.<br />

‣ Prepare Bidding Documents for Concession &<br />

transactions (Need Appoint T/F/L Advisors).<br />

‣ Optimize Completed Detailed Engineering<br />

Design.<br />

8


Key Challenges and Opportunities<br />

3. Enabling Environment:<br />

‣ Setting up Adequate Institutional Framework:<br />

• Private Sec<strong>to</strong>r Participation in Railway Development.<br />

• Need for Institutional Capacity Building.<br />

‣ Efficient Coordination (SRO, SAR, NTA, Etihad<br />

Rail, Qatar Rail, Kuwait Transport Company, etc.).<br />

‣ Enabling Policy, Strategy & Regulations.<br />

‣ Set-up Economic & Safety Regula<strong>to</strong>ry Authority.<br />

4. Government’s Financial Liability:<br />

‣ Cost <strong>of</strong> Railway- Capital & Rolling S<strong>to</strong>ck.<br />

<strong>GCC</strong> MS Cost Sharing.<br />

Determine Government Subsidy, if any.<br />

‣ Cost <strong>of</strong> Building Extension Lines.<br />

‣ Cost <strong>of</strong> introduction <strong>of</strong> high speed passenger<br />

Services.<br />

9


Lessons Learned – Way Forward<br />

‣Need <strong>to</strong> stream line the decision making<br />

process amongst <strong>GCC</strong>-MS and <strong>GCC</strong>-SG.<br />

‣Need more stringent procurement guidelines<br />

<strong>to</strong> <strong>ensure</strong> selection <strong>of</strong> required skills and<br />

quality consultants/contrac<strong>to</strong>rs.<br />

‣Need for a strategic <strong>GCC</strong> transport sec<strong>to</strong>r<br />

review and assessment focusing on regional<br />

networks integration – a transport logistics<br />

perspective.<br />

‣Meeting/understanding <strong>GCC</strong> National<br />

Environments while adopting International<br />

best practices.<br />

10


<strong>GCC</strong> Railway Link <strong>to</strong> Yemen<br />

‣<strong>GCC</strong> SG has completed a feasibility study <strong>to</strong><br />

link the <strong>GCC</strong> Railway <strong>to</strong> Yemen border.<br />

11

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