EXCLUSIVE: Abu Dhabi moves on stalled rail project
28 November, 2017 | By JENNIFER AGUINALDO
Abu Dhabi has re-engaged with stakeholders for the design and route alignment for the upcoming phases of Etihad Rail, the UAE’s federal railway network.
This includes the rail project’s second stage, for which procurement was suspended in early 2016.
“We were told Stage 2 is no longer on hold,” a source who was present at a high-level meeting held last week tells MEED.
During the meeting, senior officials at the Abu Dhabi-based Federal Transport Authority and Fujairah Municipality primarily discussed the need for minor revisions to the current route alignment for Stage 3, which will link the railway to Fujairah as well as Ras al-Khaimah and Sharjah.
MEED earlier reported that the client, Etihad Rail, met with stakeholders in late 2016.
However, neither the FTA nor Etihad Rail has officially confirmed reviving the procurement process for Stage 2 so far.
MEED understands securing funding remains a key issue for the succeeding phases of the scheme.
Etihad Rail suspended the procurement for Stage 2 of the 1,200-kilometre national railway in January 2016, following a 30 per cent employee reduction.
The main package for the 628km Stage 2 has been tendered twice. Two groups were believed to have been shortlisted in the first tender. They include:
- Salini Impregilo (Italy) / Samsung C&T (South Korea) / Tristar (local)
- China Railway Construction Company (China ) / Ghantoot Group (local)
Based on the original design, Stage 2 will connect the railway to Mussafah, to the ports in Abu Dhabi and Jebel Ali, and to the Saudi and Omani borders.
Etihad Rail has been operational since late 2015.
Abu Dhabi National Oil Company (Adnoc) is the offtaker for the railway’s first stage, which is used mainly to transport granulated sulphur from Shah and Habshan to the Mirfa depot in Ruwais, from where it is being exported.
Related Posts
Heading into the final quarter of 2018, it seems that the regional market has yet to recover from the damage caused by low oil prices
As we enter the final quarter ...
READ MORE
Regional cities could target the games as a driver for future economic growth
Two upcoming global events have underpinned economic growth in the region for most of the past decade.
Expo 2020 ...
READ MORE
Tightening fiscal space broadens Middle East opportunities for public-private partnerships once again
Outside the power and water sectors, public-private partnership (PPP) projects have had only limited success in the Middle East ...
READ MORE
Riyadh has cut capital spending and few new projects outside oil and gas sectors have started in recent years
Saudi Arabia should be the GCC’s largest construction market by far. Its ...
READ MORE
The value of active oil and petrochemical projects in the Middle East has exhibited a steep decline over the course of 2020, while gas project activity has modestly grown
Hydrocarbon-exporting majors in ...
READ MORE
Force majeure claims are providing new insights into how the regional construction sector’s behaviour must change
The rapid spread of the Covid-19 illness has led to an unprecedented ripple effect on the ...
READ MORE
Key indicators point to a potential crash looming in Dubai’s projects sector, with significant consequences for the regional market
Architects are not prone to fretting, so when one recently described his ...
READ MORE
Around $2bn could be issued in Islamic loans and bonds as government lending to Emirates tops AED7.3bn
The Dubai government plans to offer bonds and Islamic securities as it contends with ...
READ MORE
A look back at the history of attempted PPP projects in the region highlights a catalogue of failures
When looking back on the history of the GCC projects market, we can ...
READ MORE
Main contractors fear financial difficulties if suppliers and subcontractors get paid on projects that are in dispute
Abu Dhabi’s instruction to pay contractors and suppliers within 30 days has put more ...
READ MORE
Short-term outlook for GCC projects market deteriorates
GCC attentions turn to the 2032 Olympics
Governments refocus on public-private partnerships
Saudi Arabia should be the GCC’s largest construction
Hydrocarbon project activity contracts sharply
Covid-19 sparks contract issues
Signs of trouble ahead for Dubai’s construction market
Dubai eyes rare bond issuance
Is this the end of public-private partnerships in
Abu Dhabi payments instruction puts more financial strain
28 November, 2017 | .By JENNIFER AGUINALDO