GCC rail infrastructure consultants said that Gulf Cooperation Council governments are likely to spend around USD 100 billion laying an estimated 6,000 kilometer to 8,000 kilometer of new railway track up to 2020, a move that will require substantial imports of rails from outside the region.
The investment is designed to facilitate movement of both cargo and passengers. Eventually all 6 countries of the GCC will be linked by rail, while connections to Jordan and Turkey are planned at a later stage.
Currently, there are no rail mills in the GCC, meaning the entire requirement will be imported, at least in the medium term.
Asked one Bahrain based consultant “There have been discussions about establishing rail mills in the GCC, but it’s a risky proposition because once you’ve supplied the rails, what then?”.
An Abu Dhabi based consultant said that “The rail network will be the second economic revolution in the GCC after oil. However, the institutions carrying out the rail investments are as young as the projects, so it may take time.”
The 2,750 kilometer North to South line in Saudi Arabia, which is nearing completion, has used some 330,000 metric tonnes of UIC 60 rail, while the 1,200 kilometer Etihad Rail network in the United Arab Emirates will use around 144,000 million tonne of the same specification rail. Officials declined to reveal sources when contacted by Platts SBB.
According to a UAE-based rail component supplier, if the entire GCC rail network is double track, total rail requirement up to 2020 could be in the range of 700,000-1 million tonne, depending on final length. Large western European mills are likely to be the main sources.
