SHARJAH, 7 June 2005 — A plan is under study among the authorities of Abu Dhabi, Dubai and Fujairah to build a multi-billion-dirham railway linking the three emirates to transport oil derivatives. The rail link would connect the Ruwais refinery in Abu Dhabi to Fujairah, one of the world’s leading bunkering centers.
The project would involve a triad investment formula including the development of Fujairah port, oil, gas and petrochemical projects in Abu Dhabi and the Dubai Commodities and Metals Exchange. The project was discussed during a recent meeting of the higher committee for coordinating economic policies and programs which was chaired by Minister of Economy and Planning Sheikha Lubna Al-Qasimi. The project would set a unique example of cooperation between the three emirates in the energy sector.
It will entrench the UAE’s premier position in the world energy market in terms of producing and marketing oil derivatives, industry experts say.
According to project design, derivatives, mainly bunker fuel, will be transported through a railway from Ruwais complex to Fujairah the world’s second largest bunkering center.
With Dubai Gold and Commodities Exchange (DGCX) planning to launch fuel oil futures contract early next year, the UAE is expected to assume a leading competitive position to outpace Singapore, the world number one bunkering market.
The project will be given a big boost with Abu Dhabi’s plans to launch a global oil, gas and petrochemicals complex which is projected to attract regional and world investment worth $155 billion and completion of exploration and development projects which will raise the UAE’s oil output to three million barrels per day over the next years.
