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RAIL SECTOR GETS LION'S SHARE

Gulf transport project value tops $380bn

DUBAI, March 28, 2017

The total value of 1,381 active transport projects in the Gulf region rose one per cent in a month to Dh1.39 trillion ($379.7 billion) in February, according to a report.

In terms of value, the rail sector had the lion's share of  $190.4 billion (about 50 per cent), followed by road construction with $121.4 billion (nearly 32 per cent). The aviation sector too is active with over a 100 ongoing projects worth over $41 billion while the marine project value reached $26.5 billion, stated BNC Networks, a leading project research and intelligence provider in the region.
 
However, sector wise, the road construction sector dominated the project scenario with 1,028 projects (about 74.43 per cent) of the total 1,381 active transport projects, it added.
 
"These facts reflect the strong focus by the governments of the six oil-rich Gulf countries on improving physical connectivity that is crucial for cross-border movement of goods and services as well as economic integration of the region to become a stronger economic block," remarked Avin Gidwani, the chief executive of BNC Networks.

"Improved and efficient transport network will become vital for cross-border tourism and people-to-people engagement as the region's governments push economic development to the next level," he noted.

According to him, the transport sector constitutes seven per cent of the number of all active projects in the GCC.
However, in terms of value, transport projects account for 17 per cent of the total estimated value for all projects in the region, he stated.

Of these, 592 projects (nearly 43 per cent of the projects) with an estimated value of around $128 billion are under construction in the UAE, said Gidwani.

Some notable multi-billion dollar transport projects under construction include Riyadh Metro project in Saudi Arabia, expansion project of Kuwait International Airport (KIA) and Midfield Terminal Complex (MTC) in the UAE.

Seven transport projects with a combined value of around $890 million had been awarded in February, stated the BNC report.

The largest transport to be awarded in February was the new liquid berths terminal project at Duqm port worth $510 million (Dh1.87 billion) in Oman.

Twelve other transport projects with a combined value of $380 million were completed last month, it added.-TradeArabia News Service




Tags: Gulf | road projects | transport project | Rail sector |

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