$200bn worth of rail and metro projects planned in Middle East

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Updated 12 October 2014
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$200bn worth of rail and metro projects planned in Middle East

The MENA region is experiencing an unprecedented spate of rail investment. From Africa’s first high-speed rail network in Morocco to Oman’s first ever rail scheme, billions of dollars are being invested in rail and metro projects for the first time.
Today, every country has announced rail or metro plans and in total there are more than $200 billion worth of rail and metro projects either planned or under way in the Middle East. This translates to more than 33,700 km of mainline routes and 3,000 km of new metro lines.
The award of major metro and rail contracts in the Middle East has made the region among the most important sources of new work for all those designing, building, supplying and operating railways.
“The Middle East is perhaps the fastest growing market for rail and transit in the world,” says Cosema Crawford, senior vice president and rail and transit global practice leader at Louis Berger.
“Cities are growing and mobility is increasing, driving the need for robust public transportation networks. High-speed rail networks are being built in great numbers, particularly in China, which now boasts about half of the world’s systems,” adds Crawford, who will be speaking at the 10th annual MEED MENA Rail & Metro Summit, which opens in Dubai next month. An increasing number of system suppliers have entered the market, which should help stabilize pricing,” he added.
More than 250 delegates and guests are expected to attend the conference scheduled from Oct. 20-22, at the Conrad Hotel in Dubai with global experts providing tactical insights on challenges and opportunities confronting the metro and rail sector across the region. Among those who have confirmed include Ramiz Al-Assar, World Bank resident adviser to the GCC on railway projects.
Crawford will also speak at the conference’s focus day about high-speed rail in the region. The sector is booming across the world, and the Middle East can learn important lessons from the experiences of others.
High-speed rail, seen in the Middle East as an innovation, has an extensive history. Confidence is now growing in its capacity to reach new levels of performance and speed. “Japan is celebrating the 50th anniversary of the Shinkansen this year, and it is developing the next generation of maglev trains, which will travel at 500 km an hour between Tokyo and Osaka,” Crawford adds. “Louis Berger is involved in bringing the same maglev technology to the United States providing one hour service from Washington DC to New York.”
Crawford says that demand for high-speed rail solutions will increase for more than one reason. “High-speed rail popularity will grow as a better and significantly greener alternative to air and car travel,” she says. “As confidence grows in ridership and revenue figures, PPP opportunities will develop as well.”
The GCC’s first high-speed railway is the 450 km Haramain High Speed Rail project that links Jeddah with Makkah, Madinah and Rabigh. It is scheduled to open in 2015 and will break the mold for the Middle East. Also due to open the same year is Morocco’s TGV network from Tangiers to Casablanca, which will be the first high-speed rail technology to be employed on the African continent.
“As traffic congestion continues to grow, public transportation networks become essential, including intercity travel on high-speed rail,” says Crawford about the need for new transport solutions in the region.
“High-speed rail is ultimately an instrument for development, and the costs for implementation should be considered and financed in that light. High-speed rail systems are dependent on good local public transportation networks to take riders to their final destinations. Most importantly, there needs to be a cultural shift to accept public transportation systems,” Crawford says.
“Seasonal high temperatures and lack of pedestrian infrastructure need to be addressed in the design of the stations,” he added.
The engineering challenges are also formidable. “High-speed rail requires straight alignments in order to maintain speed. Developed areas may have difficulty identifying suitable corridors, resulting in compromises on speed, substantial property takings, or extensive tunneling, with the latter two adding to the cost and schedule. True high-speed rail cannot co-exist with other rail modes on the same tracks, such as freight rail,” Crawford says.
“In addition, special solutions are required to maintain the required level of track integrity over long distances of desert conditions with blowing sand,” he added.


Oil prices edge up as OPEC says its crude output fell sharply in December

Updated 18 January 2019
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Oil prices edge up as OPEC says its crude output fell sharply in December

  • OPEC cut oil output sharply in December before a new accord to limit supply took effect on Jan. 1

SYDNEY, Australia: US oil prices inched higher on Friday after a report from the Organization of the Petroleum Exporting Countries showed its production fell sharply last month, easing fears about prolonged oversupply.
US West Texas Intermediate (WTI) crude futures were at $52.40 per barrel at 0026 GMT, up 32 cents, or 0.6 percent, from their last settlement. WTI futures closed down 0.4 percent on Thursday.
International Brent crude oil futures had yet to trade, after closing up 1.1 percent in the previous session.
OPEC cut oil output sharply in December before a new accord to limit supply took effect on Jan. 1, it said on Thursday, suggesting that producers have made a strong start to averting a glut in 2019 as a slowing economy curbs demand.
“The OPEC+ production cuts (that stared this month) will be paramount to keeping the market tight and supporting prices,” ANZ said in a research note. The body is making cuts along with other major producers such as Russia.
OPEC said in its monthly report that its oil output fell by 751,000 barrels per day (bpd) in December to 31.58 million bpd, the biggest month-on-month drop in almost two years.
But tempering that support for prices, OPEC also cut its forecast for average daily demand for its crude in 2019 to 30.83 million barrels, down 910,000 bpd from the 2018 average.