Gcc Surface Transport Report June 2011

8/10/2019 Gcc Surface Transport Report June 2011

1/38

GCC Su r f ac e Tr an spo r tJune 2011

GCC Su r f ac e

Ov er v i ew o f

June 2011

www.ventures-me.com

Sec t o r

www.ventures-me.com www.gulftraffi

Tr an spo r t -An

Ro ad an d Rai l

c.com P a g e : 1

Sec t o r

www.gulftraffic.com
http://www.ventures-me.com/http://www.ventures-me.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.ventures-me.com/http://www.ventures-me.com/


2/38


Tabl e of Contents

GCC Surface Transport -An Overview

June 2011 ...........................................

Chapter1.Executive Summary ............

Chapter2. GCC Surface Transport Sec

PESTLE Analysis on GCC Surface Tran

Political Trends ...............................

Economic Trends ............................

Social and Demographic .................

Technological .................................

Legal and Regulatory ......................

Environmental ................................

Probability Impact Matrix ................

Market Growth Drivers ..................

Market Growth Restraints .............

Road sector in GCC .........................

United Arab Emirates .................

Bahrain .......................................

Kuwait.........................................

Qatar ..........................................

Oman ..........................................

Saudi Arabia ...............................

GCC Major Road and Bridges Proje

Rail Sector in the GCC .....................

Saudi Arabia ...............................

United Arab Emirates .................

Sec t o r


of Road and Rail Sector ..................................

........................................................................

........................................................................

tor Overview ...................................................

port Sector ....................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

........................................................................

cts ...................................................................

........................................................................

........................................................................

........................................................................

c.com P a g e : 2

........................................ 1

........................................ 1

........................................ 5

........................................ 7

........................................ 8

........................................ 8

........................................ 9

........................................ 9

........................................ 9

...................................... 10

...................................... 11

...................................... 11

...................................... 11

...................................... 12

...................................... 12

...................................... 13

...................................... 14

...................................... 14

...................................... 15

...................................... 15

...................................... 16

...................................... 16

...................................... 18

...................................... 20

...................................... 21
http://www.ventures-me.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.ventures-me.com/


3/38


Other GCC States ........................

Inter-GCC rail network ...............

Roadblocks in the GCCS planne

GCC Rail Projects ............................

Chapter3. Market Size and Forecasts

Government Budgets and GCC Infras

GCC Surface Transport Infrastructure

Regional Competitive Overview of In

Top Clients, Contractors and Consult

Top Clients ......................................

Top Consultants .............................

Top Contractors ..............................

Chapter4. Future Outlook for the GC

Methodology ......................................

Code of Ethics .....................................

Ventures Onsite MENA Projects Data

Gulf Traffic 2011 .................................

List of f igur es

Figure 1: KSA Existing and Future RailFigure 2: UAE Rail Network ................

Figure 3: GCC Rail Network ................

Figure 4: Budget Surpluses/Deficits a

Figure 5: GCC Surface Transport Infra

Million), 2009-2012 ............................

Figure 6: GCC Surface Transport Infra

Sec t o r


........................................................................

........................................................................

rail projects ..................................................

........................................................................

........................................................................

ructure Spend ................................................

Contractor Awards ........................................

rastructure Sector ..........................................

nts in the Surface Transport Sector ..............

........................................................................

........................................................................

........................................................................

Surface Transport industry ..........................

........................................................................

........................................................................

base ................................................................

........................................................................

way Network ..........................................................................................................................

........................................................................

percentage of GDP in GCC Countries, 2000-

structure (incl. Roads, Bridges and Rail proje

........................................................................

structure Construction Contractor Awards

c.com P a g e : 3

...................................... 22

...................................... 23

...................................... 23

...................................... 25

...................................... 27

...................................... 27

...................................... 28

...................................... 29

...................................... 31

...................................... 31

...................................... 32

...................................... 33

...................................... 34

...................................... 36

...................................... 36

...................................... 37

...................................... 38

...................................... 20

...................................... 21

...................................... 23

2011 .............................. 27

cts) Contract Awards (US$

...................................... 28

arket Shares, 2009-12.. 29


4/38


List of Tabl es

Table 1: Major Road and Bridges Proj

Table 2: Major Rail Projects in the GC

Table 3: Top Clients in the GCC Surfa

Table 4: Top Consultants in the GCC

Table 5: Top Contractors in the GCC

Sec t o r


ects in the GCC, March 2011 ..........................

C, May 2011 ...................................................

e Transport Segment .....................................

urface Transport Segment .............................

urface Transport Segment .............................

c.com P a g e : 4

...................................... 17

...................................... 25

...................................... 31

...................................... 32

...................................... 33


5/38


Ch apt er 1.Ex

Albeit the political unrest elsewhere

continued improvement for the GC

monetary policies and the continue

recover from the recession of 2009.

growth of 5% in 2010. The ability

comparison to other parts of the wo

It is estimated that GCC governm

ambitious medium-term developme

main challenges for 2011 is likely t

projects.

In the GCC, regional governments h

operation of infrastructure facilitie

modernizing their roads and mass tr

the infrastructure to support longfacilities to their citizens. As more

increases, governments are collabor

plans for infrastructure developmen

May 2011, the total amount of pl

expected to be over US$ 140 billion.

stages and also projects on hold. Wi

ease the stress on the roads, the regi

The GCC Surface Transport Sector

experience of the GCC markets and i

Middle East and North Africa (ME

economic, social, technical, legislativ

an analysis into the market driver

occurrence of these drivers and restkey statistics on construction contr

Sec t o r


c u t i ve Su mm a

in the Middle East and North Africa region,

economies, as high oil prices, expansion

d normalization of the banking and financi

The regions real GDP is expected to gro

of regional governments to support gro

ld where outright cuts in public spending ar

nt spending could rise by close to 10%

nt programs in Saudi Arabia, Kuwait, and

o be in the timely execution of large gov

ave historically played a major role in finan

s in their respective countries. GCC Cou

nsit systems to meet the needs of fast-gro

-term economic growth and to developinfrastructure projects get started and s

ting more closely with institutions in those

t, including the use of Public Private Partn

nned investments in the roads and bridg

This includes projects in the planning, desig

ith the GCC countries looking at alternative

on will also see investments worth US$ 106

June 2011 is a study by Ventures Midd

s extensive construction projects database

A) region. It provides a strategic insight

e and environmental factors impacting this

s and restraints culminating in a probabil

aints on the regions surface transport sect ct awards across the various sectors of th

c.com P a g e : 5

r y

2011 should be a year of

ry government fiscal and

al sectors help the region

by 5.5% - 6%, following

th will be crucial and in

likely to begin in earnest.

in 2011, underpinned by

atar. Indeed, one of the

ernment capital spending

cing the construction and

tries are expanding and

ing population, to provide

world-class infrastructureending on infrastructure

reas to develop long-term

rship (PPP) models. As of

s segment in the GCC is

, tender and construction

forms of transportation to

billionin rail projects.

le East based on its vast

cross the countries of the

into the various political,

promising market. Besides

ity impact matrix of the

r, the study also providessurface transport sector


6/38


namely, roads and bridges and railw

Transport Sector and a listing of t

transport sector. The study also pr

addition to the proposed new proje

of infrastructure sector vying to find

Sec t o r


ys. Key statistics also include Market size an

he top consultants, contractors and clien

ovides description of the ongoing road, b

ts thereby serving as a wealth of informati

opportunities in this market.

c.com P a g e : 6

dforecasts of GCC Surface

s in the regions surface

idges and rail projects in

n for all key stakeholders


7/38


Ch apt er 2. G

Sec t o r O v er

The infrastructure sector plays a ce

and cultural exchange. As the GCC

regions fast moving development a

organizations, which are entitled to

deliver the most efficient and eff

transportation sector develop and st

The infrastructure sector, comprisi

increased in prominence with th

diversification programs adopted b

combat the downturn. 2009 had b

economies had a cushion of oil base

estate projects were put on hold, w

plunging downward, prominently in

these economies slipping into rec

composition of their construction se

aiming to reverse the downturn. Th

awards for surface transport project

the construction contract awarded i

nearly 56 per cent to reach US$ 22,4

In countries such as Qatar there we

them being Qatars winning of the

massive infrastructure upgrades incl

network and many more projects th

spilled over to neighbouring GCC cou

Sec t o r


CC Su r f ac e Tr

v i e w

tral role in economic development by faci

tates are engaging in massive infrastructu

nd the increasing demand for transport se

monitor and develop road and rail activitie

ctive public transportation services possi

engthen to become a major economic drive

ng roads, rail and bridges projects acros

e global economic slowdown and the

the governments of the region to step

een a difficult year for real estate world

reserves to fall back on, in these countries

ith demand remaining sluggish and residen

countries such as UAE, Bahrain and Kuwait.

ession, the governments have overseen

ctor with increasing infrastructure spend p

revival trend can be observed in the figure

s after a slowdown in 2008 and 2009. Com

the GCC Surface transport sector in 2010

5 million.

re other factors that led the growth in infr

bid to host the World Cup Football event i

uding sprucing up the Doha International A

at have fuelled growth of the infrastructur

ntries as well.

c.com P a g e : 7

an spo r t

litating trade, educational

e projects to support the

vices, the authorities and

s are working together to

ble and ensure that the

r.

s the GCC countries has

increased spending and

up economic activity and

ide, and though the GCC

oo, a large number of real

tial and commercial rents

Consequently, to prevent

a strategic shift in the

mped in by governments,

s for 2010, where contract

aring to the 2009 figures,

ave shown an increase of

astructure primary among

n 2022, that necessitated

irport, building a rail road

e sector in Qatar and also


8/38


PESTLE Anal ysis on GC

Pol itical Trend s

With the unrest in Egypt spilling over

infrastructure spend has been imp

growth that had been foreseen by

However, while a number of project

likely to impose a small restraint to

Sec t o r


C Sur face Tr anspor t Sect

to Bahrain and owing to the close ties with

cted in 2011 as against the popular expe

analysts with the extensive government b

have merely been postponed or staggered

growth of the infrastructure sector across

c.com P a g e : 8

r

the other GCC neighbours,

ctation of above average

cking witnessed in 2010.

to 2012; political unrest is

the GCC in the short run,


9/38


which is likely to be in order in the m

Eco nomic Trends

Governments across the GCC hav

infrastructure projects across the re

projected demand and rising popul

these projects. Islamic financing and

projects with long gestation periods

problems associated with liquidity a

spite of the global economic slowd

expansion of infrastructure across

proven crude deposits. Oil prices ju

expected to average US$ 84 and US

ongoing diversification plans are exp

GCC region.

Social and Demogr aphi

A fast growing urbanizing populatio

transport conditions and other infra

to upgrade and expand infrastructu

driver to the growth of infrastructure

markets too have exerted their influ

Tech no l ogical

As existing infrastructure becomes i

new technologies have to be exp

technologies from across the world

fuelled the growth of the road, brid

unprecedented rail, road and bridg

which are expected to continue for s

Technology is extremely importa

infrastructure programs in GCC r

Sec t o r


edium and long run.

been widely encouraging alternative so

ion and the sustained investment in these

tion have attracted a number of private e

Sukuk issues which are a popular means

have also rapidly found favour in these m

nd credit and enabling infrastructure devel

own. Revenues from oil and gas are cruc

he GCC, which controls more than 40 per

ped by around 27 per cent to an average

86 in 2011 and 2012 respectively. A rebou

ected to spur rail and road infrastructure p

c

has led to increasing pressure on the exis

tructure and the projections for the future

re development across the GCC region. Th

facilities in the GCC countries. Moreover, t

nces adding to the demand pressure.

sufficient to meet demand and projects fo

lored. The regions hydrocarbon wealth

and spurs construction. The technological d

ges and rail infrastructure sector across th

s infrastructure development and renewal

veral more years.

t for the successful development and

gion from an economic, environmental

c.com P a g e : 9

urces of funding for the

rojects on the back of the

quity funds into financing

of international financing

rkets, thus alleviating the

pment at a rapid pace in

ial to the hugely planned

cent of the worlds total

US$ 77.2 in 2010 and are

nd in oil prices, allied with

roject activities across the

ting infrastructure such as

ll point to an urgent need

ese factors act as a main

urism and growth of retail

expansion are envisaged,

attracts state of the art

evelopments have rapidly

e GCC region. At present,

programs are underway,

maintenance of these

and social responsibility


10/38


perspective. A train like the new Du

world, offers full automation, conne

a driver and makes the most out of n

the Red Line and the Green Line. Th

viaducts elsewhere. Each train has

lighting and design. The network is

conditioned cabins and walkways, t

world built in just one go. The metr

that goes from automatic protectio

with more than 3000 CCTVs along wi

The 21st century brings extraordina

technology and constant improvem

more often to keep up with the ever

will adopt cutting-edge technology f

compliant with the high-speed passe

with European Raft Traffic Managem

traffic control system (CTC). Oma

eventually be aligned with the inter-

up to 350 km/h for passenger trave

project calls for the construction o

distance between Taif and the Holy

with safety control, ventilation, ligh

monitoring station room. The tunn

maintenance. The design of the tunn

as well as lighting.

Legal and Regul ator y

One of the major obstacles to the d

the lack of a uniform legal and reg

which make it difficult to undertake

which have faced multiple delays on

Sec t o r


ai Metro, which is one of the most advanc

tion and technology. The fully automated

ew technology. The Dubai Metro is compos

se first two lines run underground in the ci

Gold class cabins, wide leather seats, car

lways online with complete mobile phone

e Dubai urban railway is the longest auto

is also one of the safest metros, with the s

to wayside obstacle detection and camer

h synchronized and digitalized emergency s

ry growth for the railway industry in the

ent in infrastructure, the best in class initi

changing, competitive market. The propose

r the development of the new rail links. Th

nger trains and freight trains. Signalling tec

ent System (ERTMS) level 2 and the project

s National Freight and Passenger Railw

GCC rail system, will be designed for high s

l and 200 km/h for freight trains. The plan

f an 11 kilometre tunnel between Alhada

ity of Makkah. The tunnel design will incor

ting, fire-fighting and emergency control a

el will also be monitored with special ca

el's entrance and exit will have a fountain

velopment of regional infrastructure links

latory system and the lack of dispute settl

rojects such as the six country GCC rail link,

account of these reasons. Once clear cut

c.com P a g e : 10

d urban rail system in the

ubai Metro does not have

ed of several lines, such as

ty centre, and on elevated

et flooring and exclusive

nd Wi-Fi access. With Air-

ated Metro system in the

ecurity system technology

as for online surveillance,

ervices.

iddle East. With changing

atives are being revisited

Saudi Landbridge project

high-speed tracks will be

nology will be compatible

plans to have a centralised

y project, which will be

eed trains with speeds of

ned Makkah - Taif Tunnel

and Alkar to reduce the

porate a high-tech system

ll done through a central

meras for operation and

ith steps of flowing water

etween the GCC states is

ement mechanisms, all of

Qatar Bahrain causeway

regulations and codes are


11/38


laid down in tune with internation

currently happening.

Envir onmental

The environmental impact of roads

pollution, habitat destruction/distur

change from vehicle emissions. The

related facilities as well as the design

The consequences of persistently inc

local and global environment. Althou

than any other mode of transport.

benefit everyone through reduced

greenhouse gas emissions, and r

environmental excellence in the ye

technologies and more efficient ope

energy security as the rail transport

Pr obabil it y Impact M

Mar ket Gr owth Dr iver

M a c r o e c o n o m i c I n d i c a t o

Innovation and Technology growt

prompted by population growtpressure fuels infrastructure growt

PPPs and alternative infrastructur

funding fuels growth

Fast Growing Population an

Urbanization spurs demand f

utilities and energy

Sec t o r


l standards, projects are likely to procee

include the local effects of highways (pub

bance and local air quality; and the wide

design, construction and management o

and regulation of vehicles can change the i

reasing road traffic are adverse effects on h

gh railways still have environmental impact

substantial shift of passengers and freigh

ongestion and less damage to the environ

duce pollution. Rail networks are co

rs ahead through the development and u

ating practices. The rail transportation mod

ses far less energy per passenger kilometre

trix

r I m p a c t H i g h I m p a c t L o w P r o b a b i l i t y H i g

h

h

e

d

r

c.com P a g e : 11

at a faster pace than is

lic roads) on noise, water

effects including climate

f roads, parking and other

pacts to varying degrees.

uman health and both the

they are considerably less

t from road to rail would

ment. They reduce lower

mitted to even greater

e of greener and cleaner

e will also bolster regions

than road.

h P r o b a b i l i t y L o w


12/38


Green construction encourag

quality and sustainability i

infrastructure sector

Mar ket Gr owth Restr ai

M a c r o e c o n o m i c I n d i c a t o

Political unrest delays investment i

infrastructure across the region

Lack of clear, cohesive and unifor

legal and regulatory framewor

deters fast development of region

infrastructural links

Road sect or in GCC

For most countries in the GCC regi

economic development through exp

It is also key to regional integratio

systems in the GCC region are relat

with high capacity in some areas. Th

support growing, modern economie

infrastructure and multiple constrai

serious problem in most large urban

policy formulation and management

systems also need development,

infrastructure and service provision

The region has significantly higher d

parts of world. Among the six GCC c

density in comparison to rest of the c

Sec t o r


s

n

nts

r I m p a c t H i g h I m p a c t L o w P r o b a b i l i t y H i g

n

k

l

n, the road sector is central to their main

rt led growth, creating jobs, and reducing v

and vital to improving the quality of life.

ively well developed. Most countries have

quality of road infrastructure is, however,

s. There are also serious capacity gaps in

nts to regional transport. In addition, con

areas. Institutions in charge of the sector

capacity are often weak and time consumin

specially to encourage more private sec

hich has traditionally been dominated by th

nsity of motor vehicles per kilometre of ro

untries, UAE, Kuwait, Bahrain & Qatar have

ountries. Also, the higher density of vehicle

c.com P a g e : 12

h P r o b a b i l i t y L o w

objectives of accelerating

lnerability and exclusion.

In general, the transport

extensive road networks,

ften deficient and cannot

urban and rural transport

gestion is a growing and

are generally in place, but

g. Regulatory and financial

or participation in roads

e public sector.

ad compared to the other

considerably higher traffic

is because of the low


13/38


road density. Other than Bahrain, th

density. Majority of the countries in

States and United Kingdom have a r

which is at 0.10.

The lower road density and higher

countries is the major cause for high

countries as compared to the eme

United States and United Kingdom

respectively. This is as compared to

BRIC countries, three of the GCC cou

To encourage GCC residents to shif

heavily in sustainable public transp

decrease in construction costs pro

schemes.

Unit ed Ar ab Emir ates

At present, there is over US$ 58 billi

and bridges projects planned or un

billion dollar STMP - Abu Dhabi Ro

Transport (DoT).

Abu Dhabis Department of Transp

Master plan, in addition to road im

Master Plan (STMP) is a major initiat

the surface transportation of the e

with municipal organizations of diff

development of different modes for

light rail transit (LRT) that will mee

years.

One of the most significant road p

Ghweifat International Highway. The

Sec t o r


e rest of the countries in the GCC have sign

he GCC fare poorly when compared to deve

ad density of 0.68 and 1.72 respectively co

proportion of motor vehicles on roads as

r instances of road accidents. The fatality r

rging economies and developed countries

, the number of fatalities per 1000 peop

30.7 in Oman and 26.32 in Saudi Arabia.

tries - Oman, Saudi Arabia and UAE have hi

their heavy reliance on private vehicles,

ort systems. GCC governments have been

mpted by the economic crisis to press

on,accounting nearly 40 per cent of the re

er way in the UAE. One of the major proj

ds scheme which is being developed by

rt is planning several road upgrades as pa

rovements in Al-Ain and the Western regi

ive taken by the Abu Dhabi Department of

irate. The project will be planned and imp

erent areas of the emirate. The STMP pla

passenger and freight transport system suc

the mobility and the economic needs in

rojects in the UAE is the US$ 2.7 billion

project is being carried out on a public-priv

c.com P a g e : 13

ificantly low levels of road

loped nations also. United

pared to say Saudi Arabia

compared to rest of the

tes in majority of the GCC

are significantly high. In

le is at 13.68 and 19.11

ven in comparison to the

h fatality rates.

overnments are investing

taking advantage of the

head with infrastructure

ional total, worth of road

ects planned is the multi-

bu Dhabi Department of

t of its Surface Transport

on. The Surface Transport

ransport (DoT) to develop

lemented in collaboration

covers a comprehensive

as new roads, metro and

he future, say beyond 10

pgrade of the Mafraq-Al

te partnership (PPP) basis


14/38


the first of its kind in the region.

Mafraq to Al Ghweifat. It is the main

Bahr ain

The smallest market for road projec

with nearly US$ 2 billion worth of ro

One of the first projects on the age

aimed at easing traffic congestion al

of the project, known as the North M

highway, turning west to run parallel

It includes a 2.4 kilometres of cau

reconstruction and will provide acce

also includes upgrade of the King Fai

includes the US$82 million three-lev

Kuwait

Kuwait too is expected to be one of

with nearly US$ 9.4 billion of sche

board to site is the Sheikh Jaber Al A

The project involves construction of

planned new town of Subiya. Project

km long elevated road through the

the main bridge about 200 meter

construction of 9 km bridge that will

construction of two sea bridges, one

bridge linked to Subiya would be bui

intersection of Ghazali Street with J

direction, and end at Subiya Highwa

stretching around 16km, passing thr

Al Namil up to Ras Ashairij and then t

Another major road project planned

Sec t o r


he project calls for the upgrade of a 327-k

land link between the UAE and the Kingdom

s is Bahrain, which has just 1.4 per cent of

d and bridges project in various stages.

nda is the US$ 260 million North Manama

ng the Corniche in the Bahrain Financial Ha

anama causeway, will see a six-lane extensi

to King Faisal highway, and will include con

seway road on reclaimed land and 1.6 ki

ss to the Bahrain Financial Harbor (BFH) an

sal Highway and the Al Fateh junction. The

l interchange at Mina Salman Junction.

the most active markets for road projects i

es in the pipeline. One major project abo

med Al Sabah Causeway.

an eight-lane causeway across Kuwait Bay t

will be executed in two phases. Phase 1 incl

huwaikh port district on the southern side,

long, and a 5 km onshore road in Subi

link the main bridge of phase 1 to Doha. It al

linked to Subiya (main bridge) and the othe

lt over the sea at a length of approximately

mal Abdulnasser Street, passing through K

y. As for the bridge linked to Doha, it will

ugh Kuwait Bay towards the west, passing

o the Doha Highway.

in the state of Kuwait is the US$ 1billion Ja

c.com P a g e : 14

m four-lane highway from

of Saudi Arabia.

the schemes in the region

Causeway. The Project is

bour area. The first phase

on to the north of Al Fateh

struction of three bridges.

lometres of existing road

d Bahrain Business Bay. It

oads budget for 2011 also

the next couple of years,

ut to move from drawing

o link Kuwait City with the

udes the construction of 3

a 27 km low level bridge,

ya. Phase 2 includes the

so includes the design and

linked to Doha. The main

37.5km. It will start at the

uwait Bay in the northern

lso be built over the sea,

hrough the island of Umm

hra Road upgrade. Project


15/38


calls for upgrading the existing Jahra

completion and maintenance of ass

It also involves the construction of a

other associated infrastructure work

buildings, to the defence ministry, t

also includes 21 km of roads and inte

Qatar

Qatar accounts for some 12 per cent

Hosting the World Cup requires an

Authority (ASHGHAL) has pledged to

including roads and bridges over t

improvements and, with so many

connecting routes.

Qatar, the smallest nation to host t

ground up. The country plans to ope

which are set to make way for mod

begin construction soon. It is estim

hotel, leisure, tourism, sports, recrea

Cup in 2022.

Oman

Oman is also investing heavily in im

of the total road projects in the GCC,

for the country as it tries to devel

government allocated about US$ 2.8

One of the largest projects planned i

Mainland, which calls for constructi

eastern coast, with the mainland.

Another notable road project that isUS$711 million scheme will see th

Sec t o r


motorway and Jamal Abdul Nasser Street. It

ciated roads, bridges, rainwater drainage, s

7.2 km-long viaduct between Jahra Gate a

s in the area. It will connect to Kuwait Uni

o Shuwaikh port and to a number of plann

rsections, and 17,700 km of flyovers.

of the total road projects in the GCC, worth

expansive infrastructure and transport n

spend US$ 20 billion on infrastructure deve

e next five years. Dohas current road lin

stadiums and hotels planned, the country

he FIFA World Cup is creating the necessa

n new roads and demolish whole neighbour

rn projects. The nation is planning for large

ted that Qatar will invest around US$ 60

tional and infrastructure projects as it prepa

roving its roads network with the country

adding up to nearly US$8 billion.Infrastruct

op sectors such as tourism and industry.

billion towards the road sector.

the Sultanate is the US$ 1.5 billion Sea Bri

n of a 35-km bridge that would connect

underway is the 240km Al-Batinah coastal re construction of a four-lane carriageway

c.com P a g e : 15

involves the construction,

nitary and other services.

d UN roundabout, and all

ersity, to several hospital

ed developments. Project

a combined US$ 17 billion.

twork. The Public Works

lopment and maintenance

ks are in need of urgent

will require several new

ry infrastructure from the

hoods in capital city Doha,

projects, which are set to

illion to US$ 70 billion in

res to host the FIFA World

ccounting for 5.5 per cent

ure development is crucial

In the 2011 budget, the

ge from Masirah Island to

asirah Island, on Oman's

ad project. The estimatedfrom Naseem Garden to


16/38


Khatmat Malaha in Wilyat Shinas. P

Phase 2 has yet to be tendered. Sev

lane for the several Sultanates road i

In March 2011, Omans Ministry of T

billion for the construction of airpo

ministry has signed:

An agreement with Khalid bin

road in the Wilayat of Sohar i

An agreement with Oman

roundabout and a pedestria

million).

An agreement with the Natio

supervising the design and

(US$879,561).

Saudi Arabia

Saudi Arabia is the second largest m

planned or underway. The schemes

expansion of several highways and r

and infrastructure is likely to increa

planned in the kingdom, so it could b

The Kingdom of Saudi Arabia in Fe

municipal services, including the c

maintenance in particular have b

infrastructure. The massive infrastru

who are keen to tap into the plethor

GCC Major Road and Br

The major ongoing and proposed Ro

Sec t o r


ase 1 is already underway and is expected

eral other projects are also underway to u

nfrastructure.

ransport and Communications signed nine a

ts and roads. In the field of the road and

Ahmed & Sons for the design, implementat

the Al Batinah Region (US$6.5 million).

Engineering Services United company f

walkway in the wilayat of Nakhl in the A

nal Engineering Office for the provision of t

implementation of Wadi Al Halti road

rket for road projects, with over US$48 billi

include the redevelopment of King Abdulla

oad schemes in Jeddah and Riyadh. Saudi

e due to the sheer number of projects and

e the market to watch in future.

ruary 2011 has allocated US$6.5 billion o

nstruction of intercity roads and bridges.

en prioritised as they are integral to S

ture investment is generating vast interest

of opportunities in the Kingdom.

idges Pr ojects

ds and Bridges projects in the GCC are detai

c.com P a g e : 16

to be completed in 2012.

grade and develop a dual

greements worth US$2.16

land transport sector the

ion of 12 km long Saiharah

r the construction of a

l Batinah Region (US$2.07

e consultancy services for

in the wilayat of Sohar

nworth of projects either

Street in Riyadh and the

rabias spending on roads

real estate developments

its 2011 budget towards

Bridge development and

audi Arabias developing

from international players

led in the table below.


17/38


Table 1: Major Road and Bridges Projects in

Project Name Client

STMP - Abu Dhabi

RoadsAbu DhabiDepartment oTransport (DO

Roads Work in

Najran - Group 5Ministry of TraSaudi Arabia

Bahrain-Qatar

CausewayQatar BahrainCauseway Fou(QBCF)

Saudi - Egypt

BridgeGovernmentsArabia And Eg

Subsea Tunnel

Project, QatarMinistry of MuUrban Plannin

Mafraq-Al Ghweifat

International

Highway

Department oMunicipalitiesAgriculture-AbAbu DhabiDepartment oTransport (DO

Sheikh Jaber Al

Ahmed Al SabahCauseway (Subiya

Causeway)

Ministry of Pu

Works (MPW);

Lusail Mixed Use

Development -

Infrastructure

Packages

Qatari Diar ReInvestment Co( QDREIC )

Sea Bridge from

Masirah Island to

Mainland

Ministry of NaEconomy; OmSupreme Comfor Town Plan

Lulu Island RoadBridge Abu DhabiMunicipality; S

Real EstateJahra Street

UpgradeMinistry of PuWorks (MPW);

Tunnel on Salam

StreetAbu Dhabi Mu

Sec t o r


he GCC, March 2011

Consultant Contracto

T)nsport; Abdullah A

Khodari So

ndationVINCI ConGrands PrDiar (QDV

f Saudipticipal &; Qatar

Dhabi;

T)lic

Kuwait

COWI; Bahrain

l Estatempany

ionaln; Theittee

ing

orouh

licKuwait

Pan Arab ConsultingEngineers (PACE);Louis BergerInternational; AbuDhabi

Kuwait Ar

icipality ParsonsInternational; AbuDhabi

SamsungAbu DhabiDarwish

c.com P a g e : 17

ProjectValue(US$

Million)

25000

.M. Al- ns Co.

5054

structionjets / Qatari)

3000

3000

3000

2700

2600

1500

1500

1000

b Contractors 925

onstruction;; Saif Bin

871


18/38


Jamal Abdul Nasser

StreetMinistry of PuWorks (MPW);

Sheikh Rashid Bin

Saeed CrossingRoads and TraAuthority (RT

Source: Ventures Onsite MENA Projects

Rail Sect or in the GCC

The beginning of the Railways in th

principal railroads of the Ottoman T

and Medina was constructed in 1900

the railway line was damaged durin

respective territorial parts by Syria

connected countries, including Turk

years, during the later part of 20th c

networks significantly. But, regretta

of passenger or cargo movement tra

greatly rely on road transport.

In the GCC region, at the end of 20

between the capital city Riyadh an

eastern city of Hardh, to this main li

industrial belts of Jeddah, Tabuk, an

much-needed rail support for shipm

With advent of the 21st century and

in the GCC have started looking for

solution for the passenger and freigh

In 2009, UAE has launched its metr

conceived and executed in remarkab

the GCC governments increasingly

transportation. The US$ 8 billion Du

Sec t o r


licKuwait

Boodai CoRizzani DeS.p.A.; ItalHuarte Lai

Spain; TreItaly

nsport)

De Leuw CatherInternational (DCI)

Database www.venturesonsite.com

e GCC can be traced back to the famous

urkish Empire. The 1,300 kilometres railroa

08 to facilitate pilgrimages to the Muslims

World War I and was subsequently closed

nd Jordan, the line could not get back to f

y and Saudi Arabia, due to political differe

ntury, several nations in the Middle East ex

ly, none of the GCC nations embraced rail

sport, as subsidised fuel and low vehicle ta

0, only Saudi Arabia had a significant railw

d coastal city Dammam. The line has also

e. On the other hand, the foremost of the c

d Rabigh etc remains uncovered; thus den

nt of goods.

rapid growth of urbanization in the past de

alternative modes of surface transport and

t challenges confronting the region.

called the red line. The ambitious Dubai

ly quick time, triggered a series of similar p

ocusing on developing rail projects, eithe

bai Metro was the first new rail line built in

c.com P a g e : 18

struction;Ecchery; Obrascon

SA (OHL);

i Group;

836

817

Hejaz Railway, one of the

d linking Damascus, Syria,

holy places in Arabia. But,

. In spite of the revival of

ormal operation across all

ces. Meanwhile, over the

panded their rail transport

ays as a prominent mode

have made GCC residents

y line for cargo transport

a partial link connecting

ountrys western side; the

ing various industries the

ade, transport authorities

identified rail as a viable

Metro Project, which was

ojects in the Gulf; with all

for passenger or freight

the GCC in more than 20
http://www.ventures-me.com/http://www.gulftraffic.com/http://www.venturesonsite.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.venturesonsite.com/http://www.gulftraffic.com/http://www.ventures-me.com/


19/38


years.

The growing population in the GCC r

congestion on roads has increased

prompted the governments of seve

option. With the changing economi

take the centre stage in the regions

their socio-economic development o

the development of a regional railwa

Railway Network. Once completed,

Logistics in the region. In addition to

networks would also offer efficient t

member states would need to ha

Governments has initiated various l

Foremost among the group to launch

Currently rail projects worth over

exception of Saudi Arabia, all othernational railway networks and are ex

of Saudi Arabia has also implemente

Sec t o r


gion is increasing the demand for transport

. Growing trade has also contributed to

ral GCC countries to look at inter- and intr

and demographic state of affairs, railway

public transport system and it is important

bjectives. The most important project acros

y network linking each of the member state

in 2017, the network is likely to change

the vision of having a closely-integrated re

ransportation. But, to facilitate the integrat

e national rail networks. Driven by this

ong-range as well as urban rail projects i

substantial projects are Saudi Arabia, the U

106 billion are being developed or plann

countries in the region have already complpected to commence their plans in 2011

a railways expansion project.

c.com P a g e : 19

infrastructure. As a result,

the congestion. This has

a-city railways as a viable

networks are expected to

or governments to realize

s all the six GCC nations is

s, to be known as the GCC

he face of Transport and

gional community, the rail

ion across nations, the six

genda, each of the GCC

their respective nations.

E, Oman, and Qatar.

d in the GCC. With the

eted feasibility studies for012 periods. The Kingdom


20/38


Saudi Arabia

Figure 1: KSA Existing and Future Railway Ne

Source: Saudi Railways Organization

In Saudi Arabia, the North-South Rail

most important projects. The North

country with Riyadh and the easter

long-distance rail line in decades wi

will form part of the GCC Railways.

bauxite mineral ores from Jelamaid i

South Rail is expected to start operahaul 100 wagons, carrying 15,000 t

same amount of raw material as 600

The Saudi Land Bridge project aime

project being developed by Saudi Ar

transformation in the countrys tra

about 8 million tonnes of cargo and

city of Riyadh and industrial cities lo

Sec t o r


twork

Project, Saudi Land Bridge, and the Haram

-South Rail connecting Al Hadeetha at the

port cities Ras-Al-Zour and Jubail, is consi

hin the GCC. With its overall final length e

his railway line is predominantly targeted t

n the northern region to processing centres

tions in early 2011. Once operational, eachnnes of cargo with each trip. Each journe

trucks on the road.

at linking Dammam with Jeddah via Riyad

bia. The completion of this 950 km link wo

sportation industry. It would open vast

also containers from the port city of Jeddah

ated in the east. Regardless of reported del

c.com P a g e : 20

in High-speed Rail are the

Northwest corner of the

dered the first major new

pected to be 1,486 km, it

transport phosphate and

in Ras al-Zour. The North-

locomotive is expected tois expected to carry the

is another major railway

uld result in a noteworthy

pportunities to transport

in the west to the capital

ays, the project is likely to


21/38


22/38


up a completely new industry for

pollution, and improving safety.

Two other planned major railway p

Dhabi and Dubai that could be exten

Ot her GCC States

The US$ 25 billion Qatar national rail

system that will connect all six G

construction of a rail line for frei

elements of Qatar's national rail sch

a high-speed link from Doha to Bahr

the planned GCC rail network; a 30

blue) with 80 stations; and light rail

City and West Bay. As Qatar prepare

build an urban rail network to link it

which is in close proximity to all of

within a 60 km radius of Doha an

operational in 2020.

Omans National Rail Network is bei

runs from Sohar to Muscat. The sec

Duqm. The third phase would invol

develop a metro system in the capita

The remaining two GCC member st

networks, which will sooner or later l

lagging notably behind the UAE and

Sec t o r


he country and the wider region, apart

rojects in the UAE are a proposed high sp

ed up to Sharjah, and the Abu Dhabi Metro

l scheme will link to the GCC railway netwo

C states by 2017. The Qatar national ra

ht and passenger services between Doh

me includes: an east coast rail link between

ain across the Qatar-Bahrain Causeway; a f

0-kilometre Doha metro network with fou

networks serving residential developments

s to host the 2022 World Cup, officials ther

12 World Cup venues. The 340km system

the venues. The 12 World Cup tournamen

d will all be served by the rail network,

g built in three phases. The first phase co

nd phase will involve building a 560 km lin

e extending the line from Duqm to Salala

l city of Muscat.

tes, Bahrain and Kuwait, are also actively

ink to become part of the GCC Railway. Ho

audi Arabia in terms of progress.

c.com P a g e : 22

rom reducing congestion,

ed rail link between Abu

.

k, the $30billion, 2,200km

il scheme project entails

and Bahrain. The other

Ras Laffan and Mesaieed;

reight link connecting into

lines (red, gold, green &

, such as Lusail, Education

have announced plans to

ill be based around Doha,

venues are concentrated

70% of which should be

prises a 230 km line that

e running from Muscat to

. Oman also has plans to

lanning their own railway

ever, these two states are


23/38


Int er -GCC r ail networ k

Figure 3: GCC Rail Network

It is expected that the GCC region wi

end of 2017. Project calls for the con

countries with each other. Various r

member countries can be upgrade

activities among the countries. It w

kilometres per hour that would carr

linked to the planned Middle East

approximate length of 19,000 km.

Roadbl ocks in the GCCS

Rest r ic t ed Publ ic Pr ivat e

Public Private Partnership (PPP) fun

to help cover the substantial costs of

Sec t o r


ll have a railway network connecting all me

struction of 2,117 kilometre railway networ

utes for the rail line are under consideratio

to join the common network. The projec

ould entail diesel-powered trains operatin

passengers and freight between the six co

rail network where the full network wil

l ann ed r ail pr oject s

Par t n er sh ip (PPP) M o d el Fin an

ing methods are growing into prominence

rail projects. The US$7 billion Kuwait Metro

c.com P a g e : 23

mber countries before the

that would link the 6 GCC

n. Existing rail networks in

t can help increase trade

g at speeds of up to 200

ntries. The railway will be

l have 16 lanes with an

c i n g

in the GCC region in order

Project spanning 171 km


24/38


across Kuwait City is being financed

also expected to be a PPP project. O

private funding. The credit crunch

limited the appetite among banks fo

to avail bank credit for such projects

project hoping to use bank credit

involved. In addition, since this is a

any record of completion to estima

Therefore, to procure finances and c

seeking at least some form of sov

Governments in the Gulf are capab

projects with state resources, it is no

Expan sio n o f GCC-w id e R

St an d ar d s ac r o ss Al l In d

The major challenge in building an

individual country networks accord

already continuing with the develop

The integration of these different n

providers, could later pose a test.

adhered to by each state. For examp

capacity, power source, signalling

Additionally, uninterrupted move

standardization in regulations and fa

date and a formal GCC Railway Aut

Qatar-Bahrain Causeway due to polit

barrier in realizing the prestigious GC

Lac k o f Cl ar i t y o n ef f ec t

The ambitious Saudi Land Bridge Pro

Rail are completed. The postponem

financers, builders and operators, a

Sec t o r


by a PPP model. The proposed US$3 billion

n the other hand, not all projects are able t

from the recent financial crisis and its co

r financing long-term projects. The longest

is estimated to be no more than 10 years,

ill have to secure refinance in due cours

totally new industry for the region, financi

e the risk-reward calculations to arrive at

lculate risk factors in these projects, the pri

reign guarantee from GCC Governments.

le to provide such guarantees or support

always possible to support majority share

ai l w ay N et w o r k D epen d s o n A

i vi d u al Co u n t r y N et w o r k s

ideal GCC-wide regional rail transport net

ing to uniform standards and specificatio

ent of a national rail network based on the

etworks, each using a different set of eng

his could be eased if exactly the same or

le, having in place a 1.435-metre standard

systems, and operating mechanism acros

ment across borders is required, wh

es. Sadly, no concrete agreements in this re

ority is still at the planning stage. The rep

ical differences is also a cause for concern a

C Rail Network Project.

ven ess o f So me Pr o ject s

ect is supposedly put on hold until the Nort

nt has been caused due to lack of accept

d the Government is still uncertain if the

c.com P a g e : 24

Riyadh light rail project is

get the expected level of

sequences have severely

fficially recognized tenure

which means that any rail

e and deal with the risks

g companies do not have

olid decisions on funding.

vate sector companies are

Though the oil-rich State

funding of some key rail

f projects.

c h i evi n g U n i f o r m

ork is to develop the six

s. Each member state is

ir individual requirements.

ineering and construction

compatible standards are

auge track with the same

s all six member states.

ich needs considerable

gard have been formed till

rted delay in building the

d has become a potential

-South Rail and Haramain

ble bids from prospective

project would be entirely


25/38


state-funded. Kuwait is also not kee

going to be part of the GCC Rail Net

oil economy is very small.

GCC Rail Pr ojects

The table below details the top rail p

Table 2: Major Rail Projects in the GCC, May

Project Name Client

GCC Rail Network GovernmentsGCC;UAE; CoCouncil for tStates of the G

Qatar National

Rail SchemeQatari Diar ReInvestment CoQDREIC );Bahn; QatarDevelopment C

Emirates Railway

ProjectUnionCompany; AbDepartmentTransport (DO

Kuwait National

Rail Road (KNRR)

Network

MinistryCommunicationKuwait; MiniPublic WorksKuwait; ParTechnical Bure

Bahrain Rapid

Transport

Network

Ministry ofHousing; Bahra

Kuwait MetroSystem

MinistryCommunicationKuwait;OverlandUnion; ParTechnical Bure

Landbridge

ProjectSaudiOrganization (S

Sec t o r


nly progressing on its National Railway Ne

ork, due to reported concerns on utility of

ojects in the GCC region which is at various

2011

Consultant Contract

ofperatione Arablf

Systra; Bahrain; Khatib& Alami ConsolidatedEngineering Company;Abu Dhabi; Canarail

l Estatempany (eutsche

RailwaysmpanyRailway

Dhabiof

)of

s;try of(MPW);

nershipsu (PTB)orks &

in

ofs;

Kuwaitransportnershipsu (PTB)

Ingenieria &Consultoria deTransporte (Ineco)

RailwaysRO)

Parsons Brinckerhoff;Saudi; SaudiConsulting Services(SaudConsult)

c.com P a g e : 25

work, which is eventually

he network, since its non-

stages of development.

or Project

Value(US

$

Million)

30000

25000

11000

10000

8090

7000

7000


26/38


Makkah - Madina

Railway Link

(MMRL)

SaudiOrganization (S

Jeddah Monorail

ProjectMinistry of TSaudi Arabia;Municipality

Saudi - Bahrain -

Qatar Rail LinkMinistry of TSaudi Arabia

King Abdulaziz

InternationalAirport Expansion

- Infrastructure

Package

General Auth

Civil AviationSaudi Arabia

STMP - Abu Dhabi

Metro RailAbu Dhabi Deof Transport (D

Ajman Metro Ajman Municip


Sec t o r


RailwaysRO)

Dar Al Handasah Shair& Partners; Makkah;Ipsos Consultants;Scott Wilson; Dubai

ChinaConstruCorporaFrance'

Rajhi GContracMohamSwailaContrac

ansport;Jeddah

IBI Group

ansport;

rity for

(GACA);

Dar Al Handasah Nazih

Taleb and Partners;Lebanon

Saudi

Saudi A

artmentOT)

AECOM; Abu Dhabi;Parsons Brinckerhoff(PB); Abu Dhabi; DBINTERNATIONALGMBH - ABU DHABI

lity


c.com P a g e : 26

Railwaytion

tion; China;Alstom; Al

roup; Al Arrabing Company;ed Ali Al-

Trading anding;

6000

5600

4000

inladin Group;

abia

3700

3000

3000


27/38


Ch apt er 3.

Fo r ec ast s

Gover nment Budgets

The increasing role of the govern

construction industry and its infra

increasing deficit spending in the go

budget projections for 2011 with low

Figure 4: Budget Surpluses/Deficits as perce

Source: IMF and local government data

UAE-United Arab Emirates

Most GCC governments planning lar

Sec t o r


M ar k et Si z

and GCC Inf r astr ucture

ent displays the sustainability of the gro

tructure sector as can be seen from th

vernment budgets across the GCC countrie

er surpluses.

tage of GDP in GCC Countries, 2000-2011

K-Kuwait, Q-Qatar, O-Oman, B-Bahrain, KSA-

ge scale infrastructure development and e

c.com P a g e : 27

e a n d

pend

wth patterns of the GCC

reducing surpluses and

in 2009 and 2010 and in

ingdom of Saudi Arabia and

pansion plans spanning a


28/38


number of years including Saudis U

from 2010-2014, Kuwaits US$ 107 b

up to 2015.

GCC Sur face Transpo

Figure 5: GCC Surface Transport Infrastructu


As can be seen with the chart abov

the global economic slowdown had

sector in the GCC region. The surge i

planned contract awards as part of

enthusiasm among its neighbours t

the Qatar boom, large scale infras

projects all over the region. The reg

projects along with the world cup

facilities and as a result the surface

of the GCC up to 2022.

Sec t o r


$ 400 billion five year public investment pr

illion development plan, and Omans US$ 7

t Infr ast r uctur e Contr a

re (incl. Roads, Bridges and Rail projects) Contract A


, the government backed infrastructure sp

given a decided boost to contracts awarde

2010 is expected to be maintained or even

the massive infrastructure upgrades for Q

upgrade their infrastructure to benefit fro

ructure projects planned in Saudi Arabia

ions strong political will to carry out mega

elated developments will put pressure on

ransport sector is expected to get a major

c.com P a g e : 28

ogram spanning five years

billion development plan

tor Awar ds

ards (US$ Million), 2009-2012

nding planned to combat

across the infrastructure

likely to shoot up with the

tar FIFA 2022, a renewed

m the spill-over effects of

and also the planned rail

real estate and industrial

developing infrastructure

boost across the countries


29/38


Regional Compet it ive

The following figure shows the state

in the GCC region in terms of contr

during the period 2009-12.

Figure 6: GCC Surface Transport Infrastructu


The Kingdom of Saudi Arabia, the se

infrastructure spend and growth in

scenario in recent years with plans t

The country is also experimenting

railway network building in order to

The United Arab Emirates, the sec

however been the worst hit by th

perforce implement a development

infrastructure across industries, ene

growing market in 2010 over 2009.

projects such as the development of

Sec t o r


Over view of Infrastr uctu

of the market and the competitive position

cts awarded or expected to be awarded i

re Construction Contractor Awards Market Shares, 20


ond largest market in terms of market size

2010, has already led the transformation

o develop six economic cities and other ma

ith Public Private Partnerships (PPP) for fi

evive economic activity.

nd largest, in terms of the infrastructure

global economic slowdown and to recov

plan with a vision stretching up to 2030 wi

gy, transportation, healthcare and educati

It had come up with a development pla

mega cities, implementation of its railway a

c.com P a g e : 29

r e Sector

of the individual countries

the infrastructure sector

09-12

nd the largest in terms of

in the GCC infrastructure

or development schemes.

nancing such bridges and

market size in 2009, was

er from the same had to

h expenditure on building

n. Kuwait was the fastest

with a number of large

d metro network, energy


30/38


and infrastructure projects and servi

With its winning the bid to host the

GCC infrastructure map. It is set to

capital projects of which bulk of th

plans have placed it second in term

Bahrain Causeway that had promise

been put on hold due to technical a

arm to the infrastructure sector deve

The Government of Oman too has si

budget and its development plans

infrastructure and diversification of t

Except Saudi Arabia and UAE, the GC

is one of the best in the world due t

to the rest of the world. A rough esti

in the ten years since 2010 reveal a

Bahrain the transport congestion ha

prices and forced the government t

Light Rapid Transport System to a m

Sec t o r


es, healthcare and education.

orld Cup Football event in 2022, Qatar has

grow its share by allocating 37 percent of

allocation is for infrastructure projects in

s of infrastructure growth among GCC ec

to improve links between Qatar, Bahrain a

d logistic delays has also begun to make pr

lopment in the region.

ilar plans in tune on par with its neighbour

which continue to divert its oil revenues

he economy.

C countries still lack a railway network, thou

the high motor vehicle traffic density acro

ate of railway contracts expected to be aw

massive US$ 106 billion in the region to bu

become such an acute problem that it has

plan to invest in a series of infrastructure

norail, trams and a bus rapid transport syst

c.com P a g e : 30

shot to prominence in the

its budget towards major

2010-2011. The countrys

nomies. Even the Qatar -

d Saudi Arabia which had

gress, giving a shot in the

s through its expansionary

for the development of

gh their roadway network

ss the region as compared

arded across the countries

ild the railway network. In

begun to affect real estate

projects beginning with a

m.


31/38


Top Cl ients, Cont r a

Transpor t Sect or

Top Cl ients

Table 3: Top Clients in the GCC Surface Trans

Company

Abu Dhabi Department of Transport (DO

Department of Municipalities & Agricult

Al Ain Municipality and Town Planning,

Urban Planning Council, UAE

Dubai Roads and Transport Authority (R

Dubai World Central (DWC)

Qatari Diar Real Estate Investment Com

Cooperation Council for the Arab States

Ministry of Transport, Saudi Arabia

Qatar Railways Development Company

Ministry of Public Works (MPW), Kuwait

Partnerships Technical Bureau (PTB), Ku

Saudi Railways Organization (SRO)

The Supreme Committee for Town Plan

Etihad Rail, Abu Dhabi

Ministry of Works & Housing, Bahrain

Public Works Authority, Qatar

Kuwait Overland Transport Union


Sec t o r


tor s and Consul tant s

port Segment

T), UAE

re, Abu Dhabi

AE

A)

any ( QDREIC )

of the Gulf

ait

ing, Oman


c.com P a g e : 31

in the Sur face


32/38


Top Consul tants

Table 4: Top Consultants in the GCC Surface

Company

Dar Al Handasah

Khatib & Alami Consolidated Engineeri

Canarail

Atkins

Systra, France

Halcrow Group

Saudi Consulting Services (SaudConsult

Parsons Brinckerhoff

Worley Parsons, Qatar

Scott Wilson

Hyder Consulting

AECOM

COWI

Parsons International

Parsons De Leuw Cather

Royal Haskoning

Pan Arab Consulting Engineers (PACE)

Gulf Consult

Mouchel

National Engineering Services Pakistan

KEO International


Sec t o r


Transport Segment

ng Company

)

(Nespak)


c.com P a g e : 32


33/38


Top Contr act or s

Table 5: Top Contractors in the GCC Surface

Co mpany

Saudi Binladin Group

China Harbour Engineering Company

Saudi Oger

China Railway Construction Corporatio

Abdullah A.M. Al-Khodari Sons Co.

Van Oord

Dubai Rapid Link (DURL)

Hyundai Engineering & Construction C

Saif Bin Darwish

VINCI Construction Grands Projects

Consolidated Contractors International

Ghantoot Transport and General Contr

China State Construction & Engineerin

Archirodon Constructions Overseas

Royal Boskalis Westminster

Keppel Seghers Engineering Singapore

Six Construct

Al Rashid Trading & Contracting Co. (R

Galfar Engineering & Contracting, Oma

Al Harbi Trade & Contracting Company

Mohammed Abdulmohsin Al Kharafi &


Sec t o r


ransport Segment

n

mpany

Company (CCC)

acting

Corporation (CSCEC), Dubai

CC)

n

Sons, Kuwait


c.com P a g e : 33


34/38


Ch apt er 4. F

GCC Su r f ac

As the world economy recovers from

Council (GCC) backed by their hydro

spending program, not only to cushi

take advantage of the low input cost

a resource which is finite and likely t

However, the credit crisis still mana

turned out to be a difficult year for

shelved altogether. The vulnerabiliti

population and rising demand from

economies and their vast hydrocar

spending programs of the governme

witnessed a gradual revival by end

buildings, infrastructure and energy

at a more cautious pace as against th

Looking ahead, the GCC economies

and gas and industrial sectors. This i

influx of expatriates. Currently, the

population. In addition to this, the

average of over three percent.

This is expected to increase the pres

signs of inadequate capacity, in parti

and Saudi Arabia. The situation mi

Additional capacity can be brought

viable alternative solutions for trans

Sec t o r


t u r e O u t l o o k

Tr an spo r t i n

the global economic slowdown, countries a

arbon wealth, are awaiting results from a

on themselves from the adverse impact of

s and high oil and gas prices prevailing to re

be exhausted in the future.

ged to shake the confidence of the countri

the construction industry, with a number

s of the GCC countries were compounded

growing fast urbanizing population. The i

on wealth however shielded them from t

nt restored confidence in their constructio

of 2010. 2011 has meant revival of a num

ectors at a cautious pace and fresh contrac

e frantic pace of the 2008 boom years.

re likely to post strong growth rates on the

s expected to lead to an increase in popula

xpats in the GCC countries form an averag

atural growth rate of population is high i

sure on the surface transportation segment

cular in the case of the roads segment in O

ht prolong to be stretched if additional c

in the form of expanding current road ca

ort.

c.com P a g e : 34

f o r t h e

d u st r y

ross the Gulf Cooperation

assive diversification and

the slowdown, but also to

duce their dependence on

es in the region and 2010

f projects put on hold or

by their largely expatriate

herent resilience of these

e worst and the massive

sectors and the industry

er of projects across the

ts too have been awarded

back of revenues from oil

ion growth rate due to an

sixty percent of the total

the GCC countries at an

. Already, there are visible

an, UAE, Kuwait, Bahrain

apacity is not brought in.

pacities or by introducing


35/38


By now some of the countries in GC

Dubai metro and Saudi Arabia's vari

stress from the road network. Al

opportunities for pan GCC travellers.

It is apparent that the countries acr

economies also counting on public p

estimated rise in demand on accoun

an effective weapon to combat th

sustainability. The massive investme

countries of the GCC including the U

countries like Saudi Arabia and Q

industries and services sectors. Bas

adopted by the GCC countries as reg

is likely to lead the growth of th

construction industries of the variou

Sec t o r


have put forward plans for alternative tra

ous rail plans. This is expected to result in

o, the planned GCC railway scheme wil

ss the GCC have invested heavily on infras

rivate partnerships to build up its infrastruc

of the healthy rise in population across the

e slowdown and diversify into non-oil b

ts have paid off in terms of a modest reviv

AE, with infrastructure projects in Abu Dha

tar using their vast oil backed wealth to

d on these drivers along with a more tra

ards legal and regulatory environments, the

e construction industry and help put th

GCC countries back on track gradually by 2

c.com P a g e : 35

sport systems such as the

relieving some amount of

l open lot of interesting

ructure sector with a few

ture, not only to meet the

GCC countries, but also as

sed growth for long run

al in growth in the various

i taking the lead role and

diversify and build their

sparent framework being

GCC infrastructure sector

other segments of the

12.


36/38


Methodol ogy

1. All estimations made for contr

as of May 2011.

2. All projects announced

(www.venturesonsite.com) MENA P

compiling the charts.

3. Projects which have a projec

calculations.

4. For the computation of Top Clie

the basis of projects they are associ

ranking include projects in all stages

cancelled projects.

Code of Eth ics

Ventures Middle East and its emploAmerican Marketing Association (

Competitive Intelligence Professiona

the jurisdiction of the research, Vent

or requirements are incorporated int

Disclaimer: Reproduction of the con

from Ventures Middle East. Ventures

accuracy of, and disclaim any liab

information. This report does not co

Sec t o r


act awards and construction spend are bas

nd on drawing boards as entere

rojects Database as of May 2011 are tak

value less than US$5 million are not ta

ts, Consultants and Contractors, companie

ated with in a lead role. The projects con

of construction including projects on hold, b

ees adhere to the practices and ethical staMA), Charter Institute of Marketing (C

ls (SCIP). The firm and its employees abide

res Middle East, and the client organization

o the practices of Ventures Middle East for t

END OF REPORT

ents of this publication is prohibited witho

International and affiliated companies do n

ility for errors and omissions made in r

stitute and should not be treated as invest

c.com P a g e : 36

d on the project schedule

in Ventures Onsite

en into consideration for

ken into account for the

s have been identified on

idered for the purpose of

ut exclude completed and

ndards established by theIM), and the Society of

by the applicable laws for

. Additionally, any request

he clients engagement.

t gaining prior permission

ot provide warranty to the

espect of providing such

ent advice.
http://www.venturesonsite.com%29/http://www.venturesonsite.com%29/http://www.ventures-me.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.gulftraffic.com/http://www.ventures-me.com/http://www.venturesonsite.com%29/


37/38


Vent ures Onsite MEN

Ventures MENA Projects Database

than 9,500 current / future project

Arabia, Kuwait, Bahrain, Oman, Syri

Sudan and Morocco) each over US

Industrial, Buildings, Power & Water,

Projects are identified from the co

phases of the project. i.e. tender for

main contractor through to commissi

Our projects information typically i

when tenders where issued/closed

consultant/main contractor etc. an

contractor at a later stage all with pr

plumbing) contractor when appointe

For more details, please visit our we

If you would like to subscribe to our

assist your organization, please do n

Ventures Middle East LLC

P.O. Box 32094

Abu Dhabi,

United Arab Emirates

Tel: 00971 2 6222 455

Fax: 00971 2 6222 404

Email: [email protected]

Sec t o r


Pr ojects Database

provides detailed, reliable and current pro

in the Middle East and North African Co

a, Jordan, Leban

Documents

Gcc Surface Transport Report June 2011