The GCC railway project was born out of an aspiration that one day it will be possible to board a train in Kuwait and travel by rail through Saudi Arabia, the UAE, Qatar and finally disembark at Salalah in Oman on the Indian Ocean.

Ultimately, the GCC railway would connect into the networks in the Levant and seamlessly link the Gulf to Europe by rail. The network would support economic diversification, encourage investment, boost trade and create jobs.

Such ambitions are a long way off, however, despite Ramiz al-Assar, resident adviser and transport specialist at the GCC Secretariat General at the World Bank, stating earlier this year the GCC network would be operational by 2018.

Gaining momentum

“At a theoretical level, it is understood what the plan is,” says a Dubai-based lawyer working on a number of rail schemes in the region. “But we are not going to see the infrastructure that will connect those dots for 10, 15 or 20 years.”

While connecting the dots may be some way off, momentum behind the rail projects within each GCC state is increasing, with many domestic networks aiming to become fully operational by 2017-18. This year has already seen key tenders floated and a stream of contracts are due to be awarded in the coming months. Although domestic networks are progressing, there remains a lack of coordination between states regarding the creation of the GCC-wide network.

“At present, the infrastructure requirements of individual countries dominate rail developments in the region and projects may be delayed due to a failure to coordinate and by reluctance to be a first mover,” says Ashley Siboo, economist at Halcrow Group in London.

A feasibility study into the GCC rail project was concluded in 2009 and the scheme is expected to involve the construction of 2,177 kilometres of track and cost at least $15.5bn-20bn. A further feasibility study is set to be conducted into a rail connection linking Saudi Arabia and Bahrain, running close to the existing King Fahd causeway.

But, there are many details to be ironed out.  “There are other region-wide issues hindering inter-country linkage, such as a lack of uniform standards for railway track gauge and capacity, and operating practices across countries. To make progress, a solution will need to be found to address revenue sharing and ticketing across borders,” he says.

The next major step in making the GCC railway a reality is the creation of an overarching body to coordinate efforts between the individual states. A GCC railway authority has been on the cards for several years, but as yet nothing has been set up.

Earlier this year, Al-Assar said approvals for the new body would be given by 2014. The creation of the regional authority will help GCC members to reach agreements on customs and immigration policies and other divisive issues that could slow the development of the railway.

While decisions surrounding a regulatory framework remain unresolved, most GCC countries are striving ahead with implementing the domestic rail infrastructure needed to form the backbone of the integrated GCC rail network.

Saudi Arabia: The kingdom has been leading the charge in terms of rail infrastructure, benefiting from a legacy railway system dating back a number of decades. A high-speed rail line between Mecca and Medina is under development, tenders for the Riyadh metro are being reviewed, and the Saudi Landbridge project, linking Jeddah on the Red Sea coast and the ports of Damman and Jubail on the Gulf coast, is slowly progressing.

All these rail lines will ultimately filter into the GCC railway, which will connect into the kingdom’s domestic network via Dammam on its way down from Kuwait.

UAE: The country is pushing ahead with its rail plans and aims to have its first freight line operational by the end of year.

Phase 1 of the federal Etihad Railway network is due to be completed by the end of this year with the opening of the Habshan-Ruwais section of the system. The additional connection to Shah will be operational by next year and the whole of phase 1 has been built to transport granulated sulphur from Abu Dhabi’s gas fields to the port of Ruwais.

The scheme’s 628km phase 2 will connect phase 1 in the Western Region of Abu Dhabi to other major UAE ports including those at Musaffah, Khalifa and Jebel Ali, and various industrial zones in the rest of the country.

This phase is still at the tender stage and bids for the four design-and-build packages are under evaluation. Consultants are also vying for the phase’s project management consultancy contract. 

Phase 3 of the railway will connect the northern emirates of Ras al-Khaimah and Fujairah.

Oman: The sultanate has revived plans to build a national railway this year, after the scheme stalled in mid-2012. In February, the Transport & Communications Ministry retendered the project, inviting companies to bid for the consultancy services for the network’s preliminary design. On 6 May, a total of 12 firms or consortiums had submitted bids for the scheme.

Qatar: The country has also pushed forward with its plans to build an overland railway. At the end of last year, Doha tendered the consultancy services deal for the preliminary design for a long-distance freight and high-speed passenger rail line. Bids for the work were submitted in mid-March.

Kuwait: While other GCC countries have progressed with their rail networks, Kuwait’s plans have stalled, following an ongoing government review into how both the national railway and metro schemes should be developed.

With plans for domestic networks gaining momentum, it is clear there is increasing political will to support the region’s rail sector.

“I see political will to make it [GCC Rail Network] happen. I see inter-operability standards are set or being developed and national networks are being pushed forward. The GCC is committed to a 2018 launch of the network,” says Ulrich Koegler, vice-president, at US-based Booz & Co in the UAE. However, it is financial concerns that could potentially slow progress on the project.

“There is certainly political momentum to carry out the scheme, but one of the lessons Dubai and Abu Dhabi have learnt following the economic crash here is that there needs to be political momentum as well as economic sustainability to make these schemes work,” says the Dubai-based lawyer.

The use of public transport is not widespread in the GCC and a reliance on automotives is deeply entrenched in the region’s mentality. With this in mind, regional governments need to be reassured there is adequate freight and passenger demand to ensure the greenfield railway schemes generate economic, social and environmental returns on investment, and are therefore approaching projects cautiously.

Governments also need to focus on the creation of regulations to govern the integrated GCC railway, says Koegler. “To develop the GCC railway you need to build the infrastructure as well as create a sector framework and a railway operator. I see some countries focusing on building the infrastructure but not prioritising the creation of a sector framework and the establishment of an operator company enough,” he says.

Viable concern

On the plus side, the greenfield nature of nearly all of the region’s rail schemes will, however, make it easier for the countries to overcome technical constraints to the creation of the pan-GCC railway.

Unlike in Europe or other regions with a legacy of railways, GCC countries will not have to rip up existing railway tracks to build new networks that are compatible with the systems, gauges and locomotives used by their neighbouring countries’ systems.

The GCC has a number of factors playing in its favour as it looks to develop its rail sector. Coupled with the renewed energy behind individual states’ rail schemes, the creation of a GCC-wide railway looks increasingly viable, even if it might be take a little longer to establish than first envisaged.