Almost $61 billion worth of railway transport projects are under construction in the Gulf region, of which more than $40 billion comprise work on the Doha and Riyadh metro schemes, a report said.

The Gulf region's metro sector is fast developing with Doha and Riyadh metros well under way and contract awards soon expected for Jeddah, Madinah and Dammam, according to the latest report from Meed Projects, the region’s leading online projects tracking service.

Similarly, bidding is ongoing for the extension of the Dubai metro’s Red Line to link it with the site of the Expo 2020 development.

However, the report said work on the long-awaited Gulf-wide railway network is sluggish and GCC states must soon decide on the fate of the project if the network is to be operational by 2020.

“Despite years of talks and planning, we are still no closer to the development of a GCC rail network even though we are just three years away from the official opening date,” says Ed James, director of Content and Analysis at Meed Projects.

“Long distance freight and passenger projects do appear to be problematic to develop in the region due to a range of issues such as cost, geo-politics, technology and rights-of-way.

“A good case in point is the estimated $5 billion second phase of the Etihad Rail network which will be part of the GCC railway network linking the Abu Dhabi border with Saudi Arabia to Al-Ain where it would link up with the Omani section.

“Despite tenders to build the project having been evaluated for more than two years, the client recently decided to retender the project resulting in even more delays. At the same time, Kuwait is no closer to awarding its section of the network having considered both privately and publicly financed solutions to fund the project, while Saudi Arabia has been trying to get the estimated $7 billion Landbridge rail link between Jeddah and Riyadh off the drawing board for more than a decade,” James added.

However, despite the lack of progress, there are signs that mainline rail development in the region is picking up. Bids were submitted to Oman Rail earlier this year for the estimated $6 billion first phase of its Oman network, while Qatar Rail says it plans to tender the first stage of its $15 billion long-distance passenger and freight line early next year.

All told, there are more than 34,000 kilometres of railway projects planned across the Mena region. This will require more than $200 billion of investment, making the region one of the most active globally in the sector.

It is the regional metro sector, though, that is moving fastest. In addition to the Doha and Riyadh metros which are now well under way, contract awards to build the estimated $11 billion Mecca metro are imminent, while tenders are expected soon for the $13 billion Jeddah metro and next year potentially for the Medina and Dammam metro networks.

“Metro projects appear to be more of a priority for governments in the region which are facing increasing traffic congestion in their major cities,” said James. “On the other hand, the thinking on mainline rail networks appears to be that there is not such an immediate return on the substantial investment required. This has resulted in delays over project implementation.”

The considerable opportunities and challenges that the Mena region presents for  clients, contractors, consultants and suppliers alike, will be detailed at the forthcoming 11th Meed Mena Rail & Metro Summit from October 5 to 7 at the Address Dubai Marina Hotel in Dubai, UAE. – TradeArabia News Service