Saudi's US$22.5B rail project heats up MENA metro race

Since the Dubai Metro was launched in 2009, countries such as Saudi Arabia, Qatar, Kuwait, Egypt and Algeria have also stepped up their efforts to build metro rail systems. The list includes four-line metro projects in Doha and Kuwait, a metro network in Cairo and three extensions on the existing Algiers metro.

In July 2013, Qatar Rail, in association with Qatar Development Bank (QDB) and a global consultant, announced that it has identified around 104 metro-related opportunities for the local private sector. Mass transit projects promote mobility and encourage population redistribution, construction of new districts, creation of employment opportunities, and development of railway supply industries in surrounding areas, according to industry experts.

SAUDI'S METRO DREAMS

In Saudi Arabia, the government has embarked on a USD 22.5 billion plan to build Riyadh's first metro rail system, which a Reuters report said aims to achieve more than improving the quality of life in the congested capital.

"It is part of an ambitious effort to shift the country's economy beyond oil. The metro systems may also help Saudi Arabia manage its oil resources more efficiently - only about 2% of Riyadh's 6 million population currently use public transport, leaving most of the rest dependent on gasoline-guzzling cars," the report noted.

In the last week of July, the government awarded contracts for the system to three foreign-led consortia. Six rail lines carrying electric, driverless trains and extending 176 kilometers (110 miles) are to be completed by 2019.

Similar projects are underway in other major Saudi cities. Last August, the government approved a USD 16.5 billion plan to modernize the transport system in Makkah, including construction of a metro. Jeddah is also planning to build a metro that would cost around USD 9.3 billion.

"Growth in domestic oil consumption, as the country's young population expands, has been outpacing [gains] in oil production capacity. So over the next decade or two, Saudi Arabia could be forced to cut back its oil exports; the metro systems buy it time before it faces such a crunch," said the report.

The Riyadh metro is projected to carry 1.16 million passengers daily when launched, increasing to nearly 3.6 million within 10 years - a significant fraction of all trips in the country, which currently has a population of 28 million. Properties at 32 sites will be acquired for the Riyadh Metro project, said Ibrahim Al-Sultan, president of Arriyadh Development Authority (ADA), in July. "We have set up a special committee at ADA for land acquisition."

Dr. Abdel Fattah Toukan, partner and vice-president of BKCN Engineering in Canada, also foresees the rail projects in Saudi to enrich the lands around the railway boundaries, facilitate commercial activities and link cities to markets, serve pilgrims and enhance religious tourism.

Besides the metro, Saudi also has other major rail infrastructure projects in the pipeline such as the Mineral Railway, Saudi Land Bridge and the Makkah-Madinah high speed line, Toukan added. Future projects could also look into developing infrastructure that supports the movement of oil commodities within the region, but such railway projects "should be in parallel with a water channel that links the Gulf Sea with the Red Sea and a major pipeline project for crude oil transportation," he commented.

INCLUSIVE GROWTH

Arash Aghdam, director of infrastructure at Parsons Brinckerhoff's Middle East and North Africa operations, said the recent influx of regional metro projects can be attributed to the rise in development programs that address the population's need for increased mobility in both urban and sub-urban settings.

"We have progressively seen more urgent development in the metro sector than the previous years. While many cities will be stratJordan Flight Luxe