Etihad Rail launch finalised plans for GCC network
The company formed under mandate by the government of Abu Dhabi in 2009, has unveiled a new name and brand identity and confirmed its intentions for the GCC-wide rail network. During a press conference in Abu Dhabi on March 23, master developers Etihad Rail confirmed the first of three phases of the US$10.9 billion GCC […]
The company formed under mandate by the government of Abu Dhabi in 2009, has unveiled a new name and brand identity and confirmed its intentions for the GCC-wide rail network.
During a press conference in Abu Dhabi on March 23, master developers Etihad Rail confirmed the first of three phases of the US$10.9 billion GCC network rail network will be completed in 2013; transporting cargo between Habshan and Ruwais.
Extended cargo services, including a line to Shah, are expected by the end of 2014 with all three phases, including the passenger network, due for completion by 2017.
Speaking at the announcement, Etihad Rail CEO Richard Bowker said: “This project has now become a reality and I am pleased to announce that it has moved from the planning stage to actual execution. The project will contribute to the evolution of the UAE’s economic sector, transport infrastructure and, as a result the investment atmosphere.”
It was also said that via links to Saudi Arabia, the network would eventually reach both Europe and Asia.
Etihad announced designs for the second and third phases of the project, with construction due to begin during the second half of 2012.
Over recent months the company — formerly known as Union Rail — has issued tenders for
the rolling stock and civil track works.
The first three contracts are currently out to tender, with the largest of these contracts for earth works, civil works and the track system.
According to Bowker, the diesel-powered trains will be “future proof” in design, with provision to be fully electrified as the country’s power infrastructure is strengthened and more renewable energy is generated.
Financing for the project has yet to be finalised, with Etihad Rail currently seeking advice from UBS AG.
Bowker told reporters at the press conference that PPP would not be viable at this time, due tothe strict completion timelines in force. All financing options will be presented to the board as part of the decision process.
“The Etihad Rail network is one of the country’s most significant strategic projects,” said Etihad Rail vice chair, Mattar Al Tayer.
“It will contribute to the environmental sustainability, economic growth and social development of the UAE.”
