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(MENAFN - Khaleej Times) State-owned Union Railway Company is planning to award the nation's first railway construction contract by the end of 2010, a top official of the firm said.
The contract is for the laying of a 270-kilometre freight line connecting the hydrocarbon processing hub of Ruwais oil field with the newly-developed Shah gas fields in the Western Region. This will be the first phase of the 1,500-kilometre railway network which will be built over next seven years.
Union Railway Chief Executive Officer Richard Bowker told reporters on the sidelines of the Global Logistics Forum in Abu Dhabi that the total cost of the project has yet to be finalised, but it is estimated to be in the range of Dh30-40 billion. The railway, which will be part of the GCC railway network, will be connected with lines in Sohar in Oman and in Saudi Arabia once completed, and will later be linked to Jordan and other Middle Eastern countries.
Bowker said that the railway project in Abu Dhabi is well-defined, but "more work is to be done" for Dubai and the Northern Emirates.Union Railway is also looking into the feasibility of building a high-speed passenger rail between Abu Dhabi and Dubai, Bowker said, but plans are in the very early stages. He expects the contract for this will draw a lot of interest from international firms.
Going back to the first railway line, he said that the process will start on March 24, with an industry outreach session for the companies interested in bidding for the contract. Between March and September, pre-qualification processes will be carried out before the project is finally awarded at the end of the year.
The freight line between Ruwais and Shah on the Arabian Gulf coast is likely to be completed by the end of 2013.
Bowker said the company is looking at all financing options for the project and that a decision "will be made in
due course."
"This project is considered to be of major international interest," he said. "We expect a high level of interest from everywhere."
Pursuant to Federal Law no. 2 of 2009, Union Railway was formed with a mandate to manage the development, construction and operation of the the UAE's national railway.
The railway will be built to link the principal centres of population and industry of the country and form a part of the planned GCC railway network.
"Built to international standards of inter-operability, the network will run up to the speeds of 120 kilometres per hour for freight transport, and up to 200 kilometres per hour for passenger transport," the company's Web site.
Union Railway was set up last July with a Dh1 billion capital.
By Haseeb Haider
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