Price inflation on transport procurement remains a risk

18 October 2012

Transport procurement inflation risk, but construction costs remain low

With increasing investment in rail and metro networks in the GCC, there continues to be a risk of price inflation on procurement costs for transport projects.

Alistair Kirk, head of infrastructure and industrial at EC Harris told delegates at MEED’s Mena Rail Projects conference on 17 October that procurement costs are likely to rise in the coming years. However, he added due to reduced global demand for civil works, GCC companies are in a position to get preferential rates on tenders if issued in the early stages of what is widely being seen as a growing boom in transport investment across the region.

There are $400bn transport projects planned or in execution across the Mena region, with almost half of this being invested in rail-related projects.

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