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Doc. No.: P000-SPM-EMT-RPT-00003 Rev. 1.0 05/11/13 Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.
Qatar Rail
Business Opportunities
Information Booklet
Qatar Rail – Business Opportunities Information Booklet
Doc. No.: P000-SPM-EMT-RPT-00003 Rev. 1.0 05/11/13 ii Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.
Table of contents
1 Introduction ......................................................................................................................... 1
1.1 General ................................................................................................................................................................... 1
1.1.1 Business Opportunity Profiles .............................................................................................................................. 1
1.1.2 Review by Qatar Rail ............................................................................................................................................. 1
1.1.3 Input by Qatar Rail Contractors ........................................................................................................................... 1
1.2 Investment Laws .................................................................................................................................................. 2
Appendices
Appendix A Qatar Rail Civil Engineering Contractors Potential Business Opportunities – Top Priorities
Appendix B McKinsey Report
Qatar Rail – Business Opportunities Information Booklet
Doc. No.: P000-SPM-EMT-RPT-00003 Rev. 1.0 05/11/13 1 Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.
1 Introduction
1.1 General
This booklet provides potential investors with information about the work that has been
done to date by Qatar Rail, its partners, consultants and contractors in relation to future
business opportunities arising from implementation of the Qatar Rail program.
1.1.1 Business Opportunity Profiles
In order to assess the potential for new business opportunities that construction of the
railway program could generate Qatar Rail, in association with its partner Qatar
Development Bank appointed McKinsey & Company to carry out a comprehensive
investigation.
McKinsey reported in July 2012 by issuing a compilation of potential opportunities
complete with information about ease of capture, strategic value and size for each
opportunity across a range of disciplines. The McKinsey & Company report ‘Provision of
Business Analysis Services for Qatar Railways Company’ is contained in Appendix A.
1.1.2 Review by Qatar Rail
In May 2013 a review of the McKinsey report was carried out by Qatar Rail with assistance
from their strategic consultants and project managers. The outcome of the review was to
accept the McKinsey report and to add a number of further opportunities. In addition a
study was carried out to investigate the way in which the opportunities were spread along
the Qatar Rail implementation timeline.
1.1.3 Input by Qatar Rail Contractors
Following a successful procurement process Qatar Rail appointed the first four engineering
contractors whose scope is to design, build and complete the sub-surface parts of the Metro
including tunnels, stations, building services and architectural works. Each of the
contractors was asked to review the opportunities and to advise which ones held a potential
for future investment. They were also asked to indicate five ‘top priorities’ where they
considered the potential for return to be greatest.
The result of the contractors’ consideration and identification of their top priorities is
tabulated in Appendix A. Indicative values have been included where these are known. The
values are generally those that were reported by McKinsey in their report.
Qatar Rail – Business Opportunities Information Booklet
Doc. No.: P000-SPM-EMT-RPT-00003 Rev. 1.0 05/11/13 2 Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.
1.2 Investment Laws
The Qatar Ministry of Business and Trade highlights, on their website, a number of
Investment Laws to which foreign investor shall abide. These can be found through the
following link:
http://www.investinqatar.com.qa/English/ForeignInvestor/Pages/Investmentlaws.aspx
The relevant Laws are as follows:
Law No.2 of the year 2005 on the amendment of some provisions of Law No.13 of the year 2000 on Organization of Foreign Capital Investment in the economic activities
Law No.5 of the year 2005 on Protection of Secrets of Trade
Law No.7 of 2002: Law on the protection of copyright and neighbouring rights
Law No.8 of 2002 on Organization of Business of Commercial
Law No.9 of 2002: Law on Trademarks, Commercial Indications, Trade names, Geographical Indications and Industrial Designs
Law No.13 of 2000: Qatar's Investment Law Regulating the investment of foreign capital in economic activities
Law No.30 of the year 2004 Regulating Control of Accounts
Decree Law No.31 of the year 2004 on Amendment of some provisions of Law No.13 of the year 2000 on Organization of Foreign Capital Investment in Economic Activities
Qatar Rail – Business Opportunities Information Booklet
Doc. No.: P000-SPM-EMT-RPT-00003 Rev. 1.0 05/11/13 A-1 Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.
Appendix A
Qatar Rail Civil Engineering Contractors Potential Business Opportunities Top Priorities
Appendix A Qatar Rail Civil Engineering Contractors Potential Business Opportunities Top Priorities
Ref. Potential
Opportunity Description Timeline
Indicative
Value
(US$ millions)
Indicative
Quantity
1. Glass and glazed
elements
Includes all glass elements, for example fenestration, security screens,
platform screen doors, lift and escalator enclosures, feature roofs and
roof lights, Elements providing thermal insulation are also included.
2015 - 2030 40 40,000 m2
2. Metalwork Comprises both architectural and non architectural metalwork, for
example metal panel wall finishes, lift and escalator enclosures,
camouflage doors, cable management systems, balustrade and
handrails, ceiling finishes, ductwork,
2015-2030 30,000 lin. m
3. Cables A wide range of cables including medium voltage, cross linked
polyethylene cables working up to 33kV ac, low voltage cables
operating up to 415V ac and 750 V dc traction power cables.
Conductor element could be copper or aluminium.
Also included are copper rod and bar conductors.
Telecommunication di-electric and aerial cables, fire alarm, control
and low smoke halogen free products.
2014-2030 135 10,000 km
4. Electrical
switchboards
This should include the full range of switchboards located in traction
sub stations and sectioning rooms as well as signaling and station
power supply networks.
2014-2030 150 5,000 units
Ref. Potential
Opportunity Description Timeline
Indicative
Value
(US$ millions)
Indicative
Quantity
5. Fire rated doors Fire rated doors will be used in all front and back of house locations.
There will be a variety of ratings. Standardisation across the system is
a desirable objective.
17,000 units
6. Personal protective
equipment
This includes a range or personal items in the first instance worn by
operatives in the civil engineering discipline. There will be demand for
more specialized items as railway systems installation progresses and
an ongoing demand during the operational and maintenance life of the
railway.
2013-2030 30,000
personnel
7. Energy efficient
lighting
installations and
consumables
Lighting installations and fittings that meet the objectives of energy
efficiency and reasonable systemwide uniformity provide opportunity
for local product and consumable design development and
manufacture.
2015-2030 145 200,000 units
8. Environmental
testing and
commissioning
Environmental testing and commissioning is likely to involve
significant service industry input rather than being goods based. Such
industry is likely to require back up from laboratories and testing
houses.
2015-2030
9. Communications
display equipment
Such display equipment will occur across the network. Some will be
integrated and interlocked with the signaling system. Other
equipment will be less specialized although still forming a part of a
communications system. Equipment is likely to comprise electronic
components, wiring, illumination, display screen and physical
containment
2016-2030 3 5,000 units
Ref. Potential
Opportunity Description Timeline
Indicative
Value
(US$ millions)
Indicative
Quantity
10. Security systems Security systems will be widespread across the Metro involving
supply of a wide range of components, both electronic and physical.
Some systems will protect passengers and front of house activities
whilst others will protect back of house systems, plant and railway
assets.
2015-2030 62 100 stations
11. Lifts, escalators and
travelators
It may be the intention of QR to procure escalators from one of the
leading global suppliers however there is significant opportunity for
some components to be manufactured in Qatar. Also lifts and
associated components may be more open to the local market and so
could present better opportunities
2015-2030 3,000 1,500 units
12. Tunnel ventilation
systems
This includes intake and extract ductwork and louvers, fresh and
exhaust air fans, control panels and possibly chiller equipment 2014-2025 4oo km
13. Drainage and
sewerage
components
A wide variety of components is required comprising castings,
pipework in concrete, cast iron and ceramics. Personnel entry and
inspection shafts with rudimentary and air/gas tight covers are also
included.
2014-2030 15
14. Quality coatings This includes a range of heat applied coatings, for example stove
enameling and powder applied finishes. These cover a wide range of
highly durable finishing applications for the public areas of stations.
2016-2030
15. Internal partition
walls and linings
This includes metal studwork complete with gypsum based paneling
and skim coatings used for a variety of internal partition works in
public and non public areas of stations and other railway buildings
2015-2030 270 7m m2
Ref. Potential
Opportunity Description Timeline
Indicative
Value
(US$ millions)
Indicative
Quantity
16. Specialist lubricants A range of lubricants will be required during the implementation stage
of the project especially in relation to the day to day maintenance of
tunnel drive equipment. There is opportunity for equipment servicing
across the project rather than it being supplied on a contract by
contract basis
2014-2017
17. Plant, lifting
equipment and
consumables
There will be an ongoing demand for this type of equipment on a hire
or buy basis potentially linked with assembly, dismantling operation
and maintenance agreements
2014-2017 550
18. Ceiling and wall
finishes
A wide range of ceiling and wall finishes is anticipated, featuring for
example pressed metalwork, mineral ceilings, cool zone, acoustic
attenuation, integrated lighting, integrated advertising.
2015-2030 80 10m m2
Notes: 1. Timeline relates to all Qatar Rail Development Program projects up to 2030 2. Values and quantities refer to the Qatar Rail Development Program (Metro, LRT and Long Distance) up to 2030
Qatar Rail – Business Opportunities Information Booklet
Doc. No.: P000-SPM-EMT-RPT-00003 Rev. 1.0 05/11/13 B-1 Printed copy is uncontrolled and only valid at the time of printing. Always refer to the electronic copy as the latest version.
Appendix B
McKinsey Report
Doc ID
# 0
3
Provision of Business Analysis
Services for Qatar Railways
Company
CONFIDENTIAL AND PROPRIETARY
Any use of this material without specific permission of McKinsey & Company is strictly prohibited
Business opportunity profiles
Doha, July 31, 2012
McKinsey & Company |
Doc ID
# 0
3
2
Contents
▪ Prioritized opportunities
– Infrastructure provision
– Infrastructure operations
– Rolling stock provision
– Transport operations
– Other opportunities
▪ Filtered out opportunities
▪ Appendix – Potential additional opportunities
McKinsey & Company |
Doc ID
# 0
3
3
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Project management services 001: INFRASTRUCTURE PROVISION – PM, DESIGN, ENGINEERING & INSPECTION
▪ Initially high capabilities as existing
projects of similar size already carried
out in Qatar. However, JV with
established partner may be needed
on projects requiring previous rail
experience/expertise
▪ Existing suppliers include Astad,
Qatar Project Management
(subsidiary of Barwa), RedCo
International, MICA Qatar, Mazaya
Qatar, and Consolidated Gulf
Company (CGC)
▪ Risk is high, although foreign partner
can mitigate risks where needed
▪ Medium strategic value as
opportunity creates medium-skilled
jobs that can be leveraged on future
projects
▪ Serving a large client may increase
reputation and may facilitate large
contracts in Qatar and the wider GCC
region in the future
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~3.6 bn:
– 2012 to 2020: USD 2.0 bn
– 2021 to 2032: USD 1.6 bn
▪ Additional revenue from project
management services in Qatar and in
the GCC region between 2012-2032
not taken into account
▪ Qatar National Project Management
(QNPM), a planning council initiative
that supports project management in
Qatar’s public service – QNPM can
be leveraged as a partner
▪ In 2009 Qatar Project Management
signed separate 5 year contracts with
both Louis Berger and Hill
International and David Adamson &
Partners Overseas in order to
leverage experienced resources and
build up capabilities
▪ Management of specific construction
projects for part of the rail network,
including the planning, organizing,
directing, and controlling of resources to
ensure project delivery
▪ Likely scenario is for local companies to be
JV partner in metro phase 1, with increased
ownership or leading contractor in phase 2
▪ Key success factors are maintaining the
overall schedule, budget, and quality of all
project elements
▪ Main customers are building and
infrastructure developers, and demand in
the region for project management services
is expected to grow in the near future due
to growth in new constructions
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
4
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Maintenance of tunnels 006: INFRASTRUCTURE PROVISION – TUNNEL CONSTRUCTION
▪ Medium feasibility initially as
maintaining tunnels requires
specialised skills which are currently
limited in Qatar
▪ Likely scenario is for local company
to be JV partner in metro phase 1,
with increased ownership or leading
contractor in phase 2
▪ Risk is medium, although foreign
partner can share know-how (during
construction phase)
▪ Low-medium strategic value as it
builds up a degree of specialised
knowledge and creates medium
skilled jobs (structural engineers) in
Qatar that will be required on an
ongoing basis
▪ Knowledge and capabilities can be
applied outside of project within the
GCC region, although amount of
tunnel projects in GCC is expected to
be low
▪ Potential for innovation is low
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~420mn
– 2012 to 2020: USD 20mn
– 2021 to 2032: USD 400mn
▪ Additional revenue from Qatar and in
the GCC region between 2012-2032
is negligible
▪ Provision of preventive and reactive
maintenance of ~80km of metro tunnels
(including minor repairs)
▪ A JV during construction phase may be
required in order for local company to
acquire relevant skills prior to maintenance
work beginning
▪ Attractive opportunity due to long term
recurring revenues ▪ Potential for existing Qatari
companies that maintain roads and
bridges (e.g. Ashghal Roads
Operations & Maintenance, and
Qatar Building Company) to expand
skill set
▪ International companies in Qatar
include Parsons Brinckerhoff (US),
Parsons International (US), and
COWI (DK)
OPPORTUNITY
FOR NEW
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
5
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of pre-fabricated tunnel linings 007: INFRASTRUCTURE PROVISION – TUNNEL CONSTRUCTION
▪ Initially medium feasibility due to
high-precision requirement and a
strategic JV with established
multinational may be required in order
to capture opportunity.
▪ Existing suppliers of concrete
elemnents Qatar include Al Sehmiah,
ACICO, Redco, Khalid Cement
Industries Complex (KCIC), and Gulf
Flag Company WLL
▪ Risk is medium, depending on
involvement of partner
▪ Medium strategic value, as
opportunity builds up specialised
knowledge within manufacturing of
high quality pre-fabricated concrete
elements
▪ Demand for tunnels in Qatar/GCC is
expected to be fairly low but
knowledge can can be applied to
other (more simple) pre-fabricated
concrete elements/structures
▪ Concrete elements are typically not
transported large distances, thus
limited application outside of Qatar
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~110mm:
– 2012 to 2020: USD 45mn
– 2020 to 2032: USD 65mn
▪ Note that revenues are for full
contract; JV percentage is not
considered
▪ Additional revenue from tunnel
contracts in Qatar and in the GCC
region between 2012-2032 not taken
into account
▪ Consortia will only be allowed to bid
for tunnel contracts if Qatari JV
partner is included
▪ 4 tunnel contracts have already been
tendered out
▪ Potential for combining with provision
of prefab concrete for slab track as
well as more simple prefabricated
elements (e.g. for elevated structures,
platforms, buildings etc.)
▪ Manufacturing of lining elements for ~80km
of metro tunnels, potentially including
delivery to tunnel site
▪ Requires high quality, high precision
precast elements, thus a JV may be the
most suitable option
▪ Construction of tunnel is typically done by
established tunnelling company -
opportunity focuses on supplying the pre-
fabricated concrete elements to main
contractor and capturing value during
construction phase
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
6
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Maintenance of bridges/elevated structures 011: INFRASTRUCTURE PROVISION – BRIDGES/ELEVATED STRUCTURES CONSTR.
▪ Medium-high feasibility as
maintenance of bridges and elevated
structures already exists in Qatar
▪ Lead time is long as maintenance
only occurs after construction,
although ramp-up starts early
▪ Risk is medium, although foreign
partner can share know-how (during
construction phase)
▪ Medium strategic value as builds up
specialised knowledge within
maintenance of bridges and elevated
structures and creates medium
skilled jobs in Qatar that will be
required on an ongoing basis
▪ Knowledge and capabilities can be
applied outside of project within the
GCC region
▪ Potential for innovation is low
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~1.5bn:
– 2012 to 2020: USD 40mn
– 2021 to 2032: USD 1.5bn
▪ Additional revenue from Qatar and in
the GCC region between 2012-2032
is negligible
▪ Potential for existing Qatari
companies that maintain roads and
bridges (e.g. Ashghal Roads
Operations & Maintenance, and
Qatar Building Company) to expand
skill set
▪ International companies in Qatar
include Parsons Brinckerhoff (US),
Parsons International (US), and
COWI (DK)
▪ Preventive and reactive maintenance of
~100km of bridges and elevated structures
(including minor repairs)
▪ A JV during construction phase may be
required in order for local company to
acquire relevant skills prior to maintenance
work beginning
▪ Attractive opportunity due to long term
recurring revenues
OPPORTUNITY
FOR NEW
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
7
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Construction of bridges/elevated structures 012: INFRASTRUCTURE PROVISION – BRIDGES/ELEVATED STR. CONSTR.
▪ Initially medium feasibility, but JV with
established company required to
capture opportunity
▪ Existing construction companies in
Qatar include Ashghal and Al Jaber
Engineering
▪ Ease of capturing is high as consortia
must include Qatari JV partner.
However, due to complexity, likely
scenario is for local company to be
JV partner in metro phase 1, with
increased ownership in phase 2
▪ Risk is low as consortia includes
established players
▪ Medium-high strategic value, as
opportunity builds up specialised
knowledge within constructing
bridges and elevated structures,
which can be applied outside of QR
▪ Demand in the region for bridges and
elevated structures is expected to
grow in the near future due to growth
in new developments
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~850mn:
– 2012 to 2020: USD 270mn
– 2020 to 2032: USD 5800mn
▪ Additional revenue from
bridges/elevated structures contracts
in Qatar and in the GCC region
between 2012-2032 is not taken into
account
▪ Consortia will only be allowed to bid
for bridges/elevated structures
contracts if Qatari JV partner is
included
▪ Can be combined with opportunity for
maintenance of bridges and elevated
structures after construction is
complete
▪ Contractor that is overall responsible for
constructing ~100km of bridges/elevated
structures for Qatar Rail, including
– Coordinating the supply of pre-
fabricated elements, rails, and other
components
– Onsite management
– Final assembly/construction
▪ Knowledge and manufacturing capacity is
applicable outside of the rail project,
especially within building construction
▪ Business opportunity focuses on capturing
value from construction phase, with the
potential to apply knowledge in future
bridge/elevated structures projects
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
8
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Lead contractor services
▪ Initially high capabilities as existing
projects of similar size already carried
out in Qatar. However, JV with
established partner may be needed
on constructions with complex
designs and/or short timelines
▪ Existing suppliers of construction
management services include Al
Jaber, Redco Group, and Construct
International
▪ Risk is medium, as delay of station
construction could postpone the
operations of the rail system
▪ Medium strategic value as
opportunity creates medium-skilled
jobs that can be leveraged on future
constructions (managing
large/complex constructions for Qatar
Rail will build credibility for future
projects)
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~840mn:
– 2012 to 2020: USD 460mn
– 2021 to 2032: USD 380mn
▪ Additional revenue from construction
management services in Qatar and in
the GCC region between 2012-2032
not taken into account
▪ Will potentially work together with
construction site logistics company,
unless lead contractor can provide
service in-house
▪ Management of specific construction sites
of the rail network, including the overall
material flow, safety, and management of
sub-contractors to ensure successful
construction completion
▪ Key success factors are maintaining the
overall schedule, budget, and quality of all
construction elements
▪ Main customers are building and
infrastructure developers, and demand in
the region for construction management
services is expected to grow in the near
future due to growth in new constructions
OPPORTUNITY
FOR EXISTING
BUSINESSES
014: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
McKinsey & Company |
Doc ID
# 0
3
9
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Provision of earth work services 015: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ High feasibility as earth works is
already done in Qatar and there are
low technical requirements
▪ If the required capacity is available,
opportunity could be captured quickly
▪ Lead time is low as earthworks is the
first phase of building construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~970mn:
– 2012 to 2020: USD 570mn
– 2020 to 2032: USD 400mn
▪ Additional revenue from provision of
earth work services in Qatar and in
the GCC region between 2012-2032
is not taken into account
▪ Moved earth will be used to construct
New Doha International Airport
▪ On-site provision of earth work services for
buildings, including
– Coordinating the necessary equipment
and machinery
– Excavating the earth and unformed
rock
– Disposing of excavated the materials
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
10
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Construction of deep foundations 016: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ High feasibility as provision of deep
foundations is already done in Qatar
and there are low technical
requirements
▪ Lead time is low as provision of deep
foundations is in the early stages of
building construction
▪ Some knowledge can be obtained
from partnering with established
multinational, but limited strategic
value as opportunity does not create
high-skilled jobs
▪ Low potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~480mn:
– 2012 to 2020: USD 280mn
– 2020 to 2032: USD 200mn
▪ Additional revenue from provision of
deep foundations for buildings in
Qatar and in the GCC region between
2012-2032 is not taken into account
▪ Potential to integrate with
manufacturing and trucking of
elements for deep foundations
▪ Construction of deep foundations for
buildings, including
– Coordinating the supply of necessary
equipment, machinery, and materials,
– Driving down prefabricated piles into
the ground using a pile driver to
construct the foundation of the
buildings
▪ Business opportunity focuses on capturing
value from construction phase, although
deep foundations are applicable outside of
rail project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
11
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of drainage and sewerage components 017: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ Low strategic value, as opportunity
does not create high skilled jobs or
build up new capabilities
▪ Components can be applied outside
of rail project and can be exported
outside of Qatar
▪ No strong base for competitive
advantage vs. other GCC countries
▪ Low potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~15mn:
– 2012 to 2020: USD 10mn
– 2020 to 2032: USD 5mn
▪ Additional revenue from
manufacturing of drainage and
sewerage components for buildings in
Qatar and in the GCC region between
2012-2032 is not taken into account
▪ Manufacturing of drainage and sewerage
components for buildings
▪ Business opportunity focuses on capturing
value from construction phase, although
components are applicable outside of rail
project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
▪ High feasibility as drainage and
sewerage components are are
already manufactured in Qatar
▪ If the required capacity is in place,
opportunity could be captured quickly
▪ Lead time is low as earthworks is the
first phase of building construction
▪ Existing suppliers include Pipeline
Supplies & Services Company,
Pipeline Qatar, and Agbizz Al Gazal
Business Solutions
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
12
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Installation of drainage and sewerage systems 018: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ High feasibility as installation of
drainage and sewerage systems is
already done in Qatar and there are
low technical requirements
▪ Lead time is low-medium as provision
of drainage and sewerage system
occurs during the early stages of
building construction
▪ Some knowledge can be obtained
from partnering with established
multinational, but limited strategic
value as opportunity does not create
high-skilled jobs
▪ Low potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~20mn:
– 2012 to 2020: USD 10mn
– 2020 to 2032: USD 10mn
▪ Additional revenue from installation of
drainage and sewerage components
for buildings in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ On-site construction of drainage and
sewerage systems for buildings, including
– Coordinating the supply of necessary
equipment, machinery, and materials,
construction of drainage channels, and
– Assembling and installing the
sewerage system
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
13
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Construction of structural frameworks for stations 019: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ High feasibility as provision of
structural frameworks is already done
in Qatar and there are low technical
requirements
▪ If the required assets and materials
are in place, opportunity could be
captured quickly
▪ Lead time is medium as structural
frameworks for buildings must be
provisioned during the intermediary
phases of building construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~1.2bn:
– 2012 to 2020: USD 700mn
– 2020 to 2032: USD 500mn
▪ Additional revenue from provision of
structural frameworks for buildings in
Qatar and in the GCC region between
2012-2032 is not taken into account
▪ Potential to integrate with
manufacturing and trucking of
elements for structural framework
▪ On-site construction of the structural
framework for buildings including
– Coordinating availability of necessary
equipment, machinery, and materials
– Final assembly of structural
frameworks
▪ Business opportunity focuses on capturing
value from construction phase, although
capabilities are applicable outside of rail
project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
14
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Construction of inner (non-structural) building divisions 020: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ High feasibility as provision of inner
divisions for bulidings is already done
in Qatar and there are low technical
requirements
▪ If the required assets and materials
are in place, opportunity could be
captured quickly
▪ Lead time is medium as internal (non-
structural) divisions for buildings must
be provisioned during the
intermediary phases of building
construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~270mn:
– 2012 to 2020: USD 160mn
– 2020 to 2032: USD 110mn
▪ Additional revenue from provision of
inner divisions for buildings in Qatar
and in the GCC region between
2012-2032 is not taken into account
▪ Potential to integrate with leasing of
heavy construction equipment and
manufacturing of elements for internal
divisions framework
▪ On-site construction of inner (non-
structural) walls on each floor for buidlings,
including
– Coordinating availability of necessary
equipment, machinery, and materials
– Final assembly and installation of
internal divisions
▪ Business opportunity focuses on capturing
value from construction phase, although
capabilities are applicable outside of rail
project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Construction of structural frameworks for workshops 021: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ High feasibility as there are no
special technical requirements
▪ If the required assets and materials
are in place, opportunity could be
captured quickly
▪ Lead time is medium as structural
frameworks for buildings must be
provisioned during the intermediary
phases of building construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~75mn:
– 2012 to 2020: USD 30mn
– 2020 to 2032: USD 45mn
▪ Additional revenue from construction
of workshops for rolling stock
maintenance in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ Potential to integrate with leasing of
heavy construction equipment and
manufacturing of elements for
structural framework
▪ On-site construction of workshops for
rolling stuck maintenance including
– Coordinating availability of necessary
equipment, machinery, and materials
– Final assembly of structural
frameworks
▪ Business opportunity focuses on capturing
value from construction phase, with the
potential to apply knowledge in future
construction projects in Qatar and in the
region
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16
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Building inspection services (during construction) 022: INFRASTRUCTURE PROVISION – CIVIL ENGINEERING
▪ High feasibility as service is currently
already provided in Doha
▪ Existing suppliers already existing
Shaheen Engineering, Enermes
Engineering, and Confidence
Engineering
▪ Low strategic value, as opportunity
does not create additional high-skilled
jobs
▪ Applicable outside of rail project in
other new constructions
▪ Low ability to export service outside
of Qatar
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~10mn:
– 2012 to 2020: USD 5mn
– 2020 to 2032: USD 5mn
▪ Additional revenue from provision of
building inspection services in Qatar
and in the GCC region between
2012-2032 is not taken into account
▪ Once construction is complete, there
will be a handover of building
inspection services to station facilities
management company
▪ Inspection of stations and workshops at
each stage of construction (approval
needed prior to beginning work on
subsequent stage)
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
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Manufacture of pre-fabricated steel grids 024: INFRASTRUCTURE PROVISION – BASIC MATERIALS
▪ Feasible:
– Major input (construction steel)
can be sourced in Qatar – Several smart rebar companies
actually license their software,
including Bamtec from Haussler
Innovation ▪ Initial tests can be run on lower-risk
infrastructure construction, including
stations, platforms
▪ Would require a ramp-up of 9-18
months ▪ Low risk as Qatar rail can fall back on
conventional steel rebar suppliers if
required
▪ Creation of sustainable business in
construction industry with value
added jobs, such as structural
engineers, software engineers
▪ Supports region’s fast-growth
construction sector needs
▪ Potential for steel cluster, including
steel rebar and components
manufacturing
– Opportunity to strengthen/develop
Qatar’s current steel
manufacturing capability
▪ Creates knowledge-based jobs for
expert welders, CAD designers,
quality engineers
▪ Use of advanced software to install pre-
fabricated steel grids that are rolled out on
construction site
▪ Software details exact steel rebar require-
ments, and automates reinforcement bar
bending/cutting production process
– Cuts steel laying time, reduces man-
power requirements and accelerates
the construction programme
▪ Opportunity for Qatari investor buy existing
software, integrate with steel rebar shaping
facility to supply prefabricated steel rebar
onsite
▪ Customers are the contractors appointed
for all concrete structures, including
stations, platforms, slab track and other
buildings
– Additional customers can include
property developers, construction
contractors
Business opportunity Ease of capturing Strategic value
SOURCE: http://www.cadsglobal.com/rebarcad_product_information1.html, McKinsey
▪ Large regional construction
companies likely to enter solution
space as well
▪ Typically used for large scale
concrete work, such as bridges or
highways
▪ Only signficant player in Middle East
is Hy-Ten, the licensed partner of
Bamtec for UAE and Oman
Size of opportunity Other considerations
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~25-27mn:
▪ 2012-2020: 12mn – 13mn
▪ 2021-2032: 13mn–14mn
▪ Total revenue potential from sales to
other Qatar companies: USD ~15mn
▪ Total revenue potential from sales
across GCC: USD ~200mn
OPPORTUNITY
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18
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Maintenance of track infrastructure 025: INFRASTRUCTURE PROVISION – RAIL INFRASTRUCTURE CONSTRUCTION
▪ Medium feasibility initially as
maintaining the rail infrastructure
requires special skills and machinery
which are currently not available in
the country
▪ Potentially entering the market
through JV with established player
(e.g. international construction
company which has a proven
experience in this field) and ramp up
capabilities during first years
▪ Low risk as numerous established
companies can provide service if
required
▪ High strategic value as it is an
ongoing opportunity with highly
skilled jobs
▪ Some potential outside Qatar given
that superstructure has to be
maintained frequently and machinery
can be used across countries, e.g.
grinding, ballast tempering
▪ Potential for innovation is low –
mainly defined by technology built in
at construction phase
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~285mn:
– 2012 to 2020: USD 15mn
– 2021 to 2032: USD 270mn
▪ Additional revenue from Qatar and in
the GCC region between 2012-2032
is not taken into account
▪ Provision of the scheduled and ad-hoc
maintenance of track infrastructure (slab
track)
▪ Typically the supplier of the rail
infrastructure does the maintenance, and a
JV during supply and installation phase
may be required in order for local company
to acquire relevant skills
▪ Main customer is Qatar Rail, and value is
captured through providing services which
are essential for a fully functional rail
network (metro, light rail as well as heavy
rail)
▪ Attractive opportunity due to long term
recurring revenues
▪ Existing suppliers of rail infrastructure
(supply and maintenance) include
Acciona (ES), Bechtel (US), Bilfinger
Berger (DE), Veolia (FR), Vinci (FR),
and Vossloh (DE),
▪ Numerous other mid-sized
companies can also provide service
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply of ballast 026: INFRASTRUCTURE PROVISION – RAIL INFRASTRUCTURE CONSTRUCTION
▪ High feasibility as there are limited
special technical requirements
▪ Existing suppliers of stone and
aggregate include Trelco International
Co WLL and Qatar Quarry Company
WLL
▪ Lead time is medium as ballast for
superstructure must be provisioned
during the intermediary phases of
building construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Little potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~10mn:
– 2012 to 2020: USD 5mn
– 2020 to 2032: USD 5mn
▪ Additional revenue from supply of
ballast in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ Slab track system will be used for
large portions of the network so
demand for ballast is likely to be low
relative to the amount of track
▪ Can potentially integrate with
production of other elements made
from stone
▪ Supply of ballast for relevant (non-slab
track) portions of rail superstructure,
including
– Track
– Depot
– Shunting yards
▪ Business opportunity focuses on capturing
value from construction phase, with limited
potential to apply knowledge and networks
in future rail projects in Qatar and in the
region
OPPORTUNITY
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
Standard manufacture of steel rebars and billets 028: INFRASTRUCTURE PROVISION – RAIL INFRASTRUCTURE CONSTRUCTION
▪ Highly feasible:
– Extension of current activities of
domestic steel rebar and billet
manufacturers, but may require
additional investment in capacity
and capabilities
▪ Relatively low risk given Qatar’s
current experience in this area
– Potential for Qatar Rail to source
most steel rebar domestically,
and only import rebar/billets for
riskier slab track and
tunnel/bridge
▪ Current Qatar production of steel
rebar at capacity, requiring imports
▪ Limited strategic value for Qatar
given:
– Domestic steel manufacturing
already exists across GCC
▪ But is a basic material required for
region’s booming construction
industry
▪ Manufacture and supply of steel rebar and
billets used to reinforce concrete
structures, including:
– Slab track
– Bridges
– Tunnel lining
– Station superstructure
▪ Steel rebar is used across all major
constructions in Qatar, with key customers
including property developers and
construction contractors
▪ Potential for additional steel rebar
production to be used for:
– Qatar and GCC construction and civil
works sector
– GCC rail project
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~2-2.1bn:
– 2012-2020: ~1.3bn
– 2021-2032: 680mn-685mn (only
considers Metro Phase 2, and
not passenger/freight rail)
▪ Additional revenue from other
companies not taken into account
▪ Qatar Steel is regularly importing
steel rebar from Turkey to meet
domestic demand
▪ Construction industry is increasingly
looking for ways to replace steel
rebar with material with superior
strength
to- weight ratio, eg.
– Glass fibre rebar
– Carbon fibre rebar
SOURCE: Expert interview, McKinsey
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply of pre-fabricated concrete for slab tracks
▪ Initially medium feasibility due to
high-precision requirement and a
strategic JV with established
multinational may be required in order
to capture opportunity.
▪ Existing suppliers of concrete
elemnents Qatar include Al Sehmiah,
ACICO, Redco, Khalid Cement
Industries Complex (KCIC), and Gulf
Flag Company WLL
▪ Risk is medium, depending on
involvement of partner
▪ Medium strategic value, as
opportunity builds up specialised
knowledge within manufacturing of
high quality pre-fabricated concrete
elements
▪ Demand for slab track in Qatar/GCC
is expected to be fairly low but
knowledge can can be applied to
other (more simple) pre-fabricated
concrete elements/structures
▪ Concrete elements are typically not
transported large distances, thus
limited application outside of Qatar
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~950mn:
– 2012 to 2020: USD 200mn
– 2020 to 2032: USD 750mn
▪ Note that revenues are for full
contract; JV percentage is not
considered
▪ Additional revenue from slab track
contracts in Qatar and in the GCC
region between 2012-2032 not taken
into account
▪ Potential for combining with provision
of tunnels linings as well as more
simple prefabricated elements (e.g.
for elevated structures, platforms,
buildings etc.)
▪ Manufacture of pre-fabricated concrete for
slab track rail infrastructure, potentially
including delivery to construction sites
▪ Requires high quality, high precision
precast elements, thus a JV may be the
most suitable option
▪ Construction of track infrastructure is
typically done by established construction
companies – opportunity focuses on
supplying the pre-fabricated concrete to
main contractor and capturing value during
construction
OPPORTUNITY
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029: INFRASTRUCTURE PROVISION – RAIL INFRASTRUCTURE CONSTRUCTION
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Maintenance of electrification 039: INFRASTRUCTURE PROVISION – RAILWAY TECHNOLOGY
▪ Medium feasibility initially as
maintaining the electrification system
requires special skills and machinery
which are currently not available in
the country
▪ Likely scenario is for local company
to enter the market through a JV with
established player (e.g. international
construction company which has a
proven experience in this field or
OEM) and ramp up capabilities during
the first few years of maintenance
▪ Risk is high as electrification is key
component of rail but can be
mitigated with experienced partner
▪ Medium strategic value as it creates
high skilled specialised jobs in Qatar
that will be required on an ongoing
basis
▪ Potential to export know-how in GCC
is limited, especially as most railways
today are not electrified (e.g. Saudi
Arabia)
▪ Potential for innovation is low –
mainly defined by technology built in
at construction phase
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~300mn:
– 2012 to 2020: USD 10mn
– 2021 to 2032: USD 290mn
▪ Additional revenue from Qatar and in
the GCC region between 2012-2032
is not taken into account
▪ Existing suppliers of electrification
(design, supply and maintenance)
include Alstom (FR), Balfour Beatty
(UK), Brecknell Willis (UK), and
Siemens (DE)
▪ Provision of the scheduled and ad-hoc
maintenance of the electrification system
(incl. third rail)
▪ Typically the railway owner does this in-
house, but can also be subcontracted to
OEMs or third party (in this case a JV
during supply and installation phase may
be required in order for local company to
acquire relevant skills)
▪ Value is captured through providing
services which are essential for a fully
functional rail network (metro, light rail as
well as heavy rail)
▪ Attractive opportunity due to long term
recurring revenues and need for company
based in Qatar to provide the service
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Maintenance of signaling & communication 040: INFRASTRUCTURE PROVISION – RAILWAY TECHNOLOGY
▪ Low feasibility initially as train control
and command system incl. signalling
and communication is a highly
sophisticated system, which requires
specially trained staff
▪ Likely scenario is for local company
to enter the market through a JV with
established player (e.g. proven
international construction company or
OEM) and ramp up capabilities during
the first few years of maintenance
▪ Risk is high as signalling and comm.
is key component of rail operations
but can be mitigated with experienced
partner
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~280mn:
– 2012 to 2020: USD 20mn
– 2021 to 2032: USD 260mn
▪ Additional revenue from Qatar and in
the GCC region between 2012-2032
is not taken into account
▪ Existing suppliers of signalling and
communication services include
Alstom (FR), Ansaldo (IT),
Bombardier (CA), GE (US), Invensys
Rail (UK), Siemens (DE), and Thales
(FR)
▪ Medium strategic value as it creates
high skilled specialised jobs in Qatar
that will be required on an ongoing
basis
▪ Potential outside Qatar relevant, but
limited. Often OEMs use technology
which has special requirements, e.g.
a Siemens signalling system cannot
be maintained by a Bombardier team
▪ Potential for innovation is medium –
mainly defined by international
standards, e.g. ETCS
▪ Provision of the scheduled and ad-hoc
maintenance of the train control, signalling
and communication system
▪ Typically the supplier of signalling and
communication system does the
maintenance, and a JV during supply and
installation phase may be required in order
for local company to acquire relevant skills
▪ Main customer is Qatar Rail, and value is
captured through providing services which
are essential for a fully functional rail
network (metro, light rail as well as heavy
rail)
▪ Attractive opportunity due to long term
recurring revenues
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of masts for electrification/signaling 041: INFRASTRUCTURE PROVISION – RAILWAY TECHNOLOGY
▪ High feasibility for wood or concrete
masts, as existing materials and
capabilities already present in Qatar
▪ Existing suppliers of lighting poles,
high mast, and power transmission
towers include Madaeena Al Doha
Lights and Mubarak International Co
WLL
▪ If fiberglass masts are required, a
pultrusion plant would need to be
established as there are currently no
pultrusion plants in Qatar
▪ Low strategic value if masts are made
out of wood or concrete as
opportunity does not create high-
skilled jobs
▪ A pultrusion plant would have
numerous applications outside of rail
(e.g. construction reinforcements,
corrosion-resistant floor mats, and
high strength tunneling components)
and and would have high strategic
value
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~5mn:
– 2012 to 2020: USD 1mn
– 2020 to 2032: USD 4mn
▪ Additional revenue from supply of
ballast in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ Provision of masts for electrification and
signaling for long distance rail
▪ The masts can be made out of numerous
materials depending on desired quality and
cost, e.g. wood, concrete, or fiberglass
▪ Opportunity focuses on capturing value
during construction phase
▪ Opportunity to purchase fiberglass
masts (together with fiberglass
protection walls) to support potential
new pultrusion plant
OPPORTUNITY
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Construction consulting and logistics 052: INFRASTRUCTURE PROVISION – CONSTRUCTION SUPPORT SERVICES
▪ Initially medium feasibility, as
specialised knowledge with
construction and supply chain
optimisation needs to be obtained
▪ Existing construction optimisation
companies include Davis Langdon,
Balfour Beatty, and Turner, while
existing supply chain optimisation
companies include Agility, DHL, and
CEVA
▪ Risk is high, depending on the
complexity of the project (material
mismanagement and shortages could
lead to construction delays)
▪ Builds up specialised knowledge
within construction site logistics and
material management, which would
create high-skilled jobs
▪ Could facilitate development of long-
term expertise within construction site
logistics and supply chain
management more broadly, which is
highly relevant for construction in
Qatar and the wider GCC region
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~100mn
(TBC):
– 2012 to 2020: USD ~60mn
– 2021 to 2032: USD 40mn
▪ Additional revenue from offering
integrated construction site logistics
services in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ Techniques that can be employed to
improve construction operations
include lean construction tools,
performance management systems,
and personalised training plans
▪ Construction consulting and logistics
services covers on-site process
optimisation as well as logistics handled by
main contractor
▪ Value proposition for contractors centres
around lower costs, shorter construction,
capability building, and renewed focus on
core competencies, as current performance
of main contractors shows various
inefficiencies
▪ Construction consulting company is hired
by and works with main contractor, as close
cooperation between the parties is crucial
▪ Construction consulting company is hired
by and works with main contractor –
potential clients exist across a wide range
of construction types, e.g. residential and
commercial buildings, infrastructure
developments, and public institutions
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey, Qatcom.com, ameinfo, Barwa
Labour force support services 053: INFRASTRUCTURE PROVISION – CONSTRUCTION SUPPORT SERVICES
▪ High ease of capturing, even though
size of projects and required services
might be relatively large
▪ Existing players already on the
market in Qatar e.g. Barwa Real
Estate Company and Como Qatar.
▪ Barwa has recently constructed the
world’s largest truck park (Barwa al
Baraha), which can accommodate
4,200 trucks, at a cost of QR500m.
Phase 2 of Barwa al Bahara will
consist of an accommodation camp
for 53,000 workers, at a cost of
QR2.2bn
▪ Low strategic value as the opportunity
creates few high-skilled jobs
▪ Could facilitate development of long-
term expertise within integrated
labour force management and the
corresponding supply of facilities,
which could be exported within Qatar
and to the rest of the GCC region
▪ Low potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~100mn:
– 2012 to 2020: USD 50mn
– 2021 to 2032: USD 50mn
▪ Additional revenues from offering
integrated labour force support
services in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ Parts of the temporary site services
could potentially be further
outsourced, e.g. provision of medical
facilities, and labour force
transportation to and from sites
▪ Potential to expand into staffing
solutions
▪ QR must ensure that the working and
living conditions of workers are
acceptable (Qatar and the UAE have
previously been criticised in this area)
▪ One-stop solution for labour force support
services for Qatar Rail, including
accommodation, catering, medical facilities,
labour force transportation to and from
construction site, visa processing and
documentation, and other temporary site
services, e.g. prayer rooms and
recreational facilities
▪ Market is currently very fragmented,
potential for consolidation and achieving
economies of scale
▪ Main customers are building and
infrastructure developers, and demand in
the region for labour force support services
is expected to grow in the near future due
to growth in new constructions
OPPORTUNITY
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27
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Lease of heavy machinery for construction 054: INFRASTRUCTURE PROVISION – CONSTRUCTION SUPPORT SERVICES
▪ High, but requires significant upfront
capital for investment in assets
▪ Existing companies in Qatar include
Qatar Heavy Equipment and Support
Services, Global Enterprises Co, and
MJK Group Gulf Equipment & Hire
▪ Lead time is low as civil engineering
construction takes place during early
phase of construction
▪ Risk is low, assuming on-time
delivery of assets and guaranteed
availability of high quality
maintenance and repair
▪ Low strategic value as opportunity
does not build up high skilled jobs
▪ Assets can be applied outside of
project within the GCC region
▪ Could provide basis for establishing
manufacturing plants of heavy
machinery for construction
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~550mn:
– 2012 to 2020: USD 325mn
– 2020 to 2032: USD 225mn
▪ Additional revenue from lease of
heavy machinery in Qatar and in the
GCC region between 2012-2032 is
not taken into account
▪ Potential for innovation within
manufacturing of heavy machinery
electronics (e.g. electronic guidance
and control products)
▪ Opportunity to own and leas out heavy
machinery for construction of rail network
for Qatar Rail, including cranes, bulldozers,
digging equipment/excavators, loaders,
and trucks
▪ Business opportunity focuses on capturing
value from construction phase, although
heavy machinery is applicable outside of
rail project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Lease of construction equipment 055: INFRASTRUCTURE PROVISION – CONSTRUCTION SUPPORT SERVICES
▪ High, but requires some upfront
capital for investment in assets
▪ Existing suppliers include Lulu
Rayyan Trading & Contracting WLL,
Harsco Al Darwish WLL, and Manar
Al Omran
▪ Lead time is low as civil engineering
construction takes place during early
phase of construction
▪ Risk is low, assuming on-time
delivery of assets and guaranteed
availability of high quality
maintenance and repair
▪ Low strategic value as opportunity
does not build up high skilled jobs
▪ Assets can be applied outside of
project within the GCC region
▪ Could provide basis for establishing
manufacturing plants of construction
equipment and light machinery
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~75mn:
– 2012 to 2020: USD 45mn
– 2020 to 2032: USD 30mn
▪ Additional revenue from lease of
equipment for construction in Qatar
and in the GCC region between
2012-2032 is not taken into account
▪ Opportunity to own and lease equipment
and light machinery for construction of rail
network for Qatar rail, including
shuttering/formwork, scaffolding, concrete
mixers, drills, breakers, and rammers, and
temporary lighting
▪ Business opportunity focuses on capturing
value from construction phase, although
equipment is applicable outside of rail
project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Materials transportation and heavy trucking 056: INFRASTRUCTURE PROVISION – CONSTRUCTION SUPPORT SERVICES
▪ High, but requires upfront capital for
investment in assets (trucks and
potentially warehouses)
▪ Existing companies in Qatar include
Qatar Heavy Equipment and Support
Services and Al Hasan Transport &
Equipment
▪ Lead time is low as materials
transportation and heavy trucking
begin prior to construction is initiated
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Builds up limited knowledge within
owning and managing a fleet of
transport vehicles and trucks
▪ Assets and knowledge can be applied
outside of project within the GCC
region
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~75mn:
– 2012 to 2020: USD 45mn
– 2020 to 2032: USD 30mn
▪ Additional revenue from materials
transportation and heavy trucking in
Qatar and in the GCC region between
2012-2032 is not taken into account
▪ Opportunity to later expand into multi-
modal transport operations and later
integrated supply chain management
and logistics
▪ Potential for innovation within
GPS/track and trace system and
corresponding software
▪ Auxiliary service of freight insurance
and security could also be offered
▪ Logistics to and from construction sites,
including
– Transport of material
– Heavy trucking
– Warehousing where relevant
▪ Knowledge and assets are applicable
outside of the rail project, especially within
building construction
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
OPPORTUNITY
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of high performance glass 058: INFRASTRUCTURE PROVISION – BASIC MATERIALS & COMPONENTS
▪ Processing of high performance glass for
stations (windows, facades, and glass
doors), with a focus on tinted glass to
reduce building heat and energy
consumption
▪ Glass sheets will be sourced from existing
float glass plants
▪ The main drivers of demand for high
performance glass are regulation and lower
total cost of ownership for building owners
▪ Main customer will initially be Qatar Rail,
but a significant potential demand exists
outside of the project, primarily in building
windows and facades, where demand is
expected to grow due to new constructions
▪ Qatar has potential cost advantage of
~10% when selling processed glass in local
market, primarily due to lower energy and
transport costs
▪ Medium to high feasibility - existing
players (e.g. Qatar Glass Industries,
Jersey Glass, Dallas Glass, and Zujaj
Company) already on the market for
simple glass, and opportunity for
them to increase their capabilities
▪ New plant with advanced machinery
will need to be established , while
outside expertise will need to be
brought in to build up capabilities and
acquire certification
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~35mn:
– 2012 to 2020: USD 20mn
– 2021 to 2032: USD 15mn
▪ Additional revenue from the GCC
region is not included, although
significant potential exists – glass
typically makes up 3-5% of total
building construction costs, of which
90% is high performance glass
▪ Qatar currently imports 70% of its
high performance glass demand
▪ The float glass market is dominated
Note that opportunity does not include
glass for rolling stock as this will be
supplied by OEM and has a
significantly smaller market outside of
rail
▪ High strategic value as there is the
potential for cost-competitive
processing (manufacturing) of glass
with opportunity for driving global
innovation within the industry, which
would create high-skilled jobs in
Qatar
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Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of pre-fabricated concrete elements for elevated
structures
▪ Builds up specialised knowledge and
manufacturing capacity within
manufacturing of pre-fabricated
concrete elements, which is
applicable outside of the rail project,
especially within building construction
▪ Concrete elements are typically not
transported large distances, thus
limited application outside of Qatar
▪ Potential for innovation is low
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~3.3bn:
– 2012 to 2020: USD 1bn
– 2021 to 2032: USD 2.3bn
▪ Additional revenue from prefabricated
concrete elements contracts in Qatar
and in the GCC region between 2012-
2032 is not taken into account
▪ Potential for combining with provision
of more complex prefabricated
elements (e.g. for tunnels and slab
track)
▪ Can potentially combine with
opportunity of maintenance of bridges
and elevated structures after
construction is complete
▪ Manufacturing of prefabricated concrete
elements for ~100km of bridges/elevated
structures
▪ Focus on capturing value during
construction phase, as prefabricated
elements are the main costs in bridges and
elevated structures and thus represent
large opportunity
▪ Existing suppliers of concrete can capture
opportunity by upgrading skills to produce
more complex elements
▪ Main customers are building and
infrastructure developers, and demand in
the region for prefabricated concrete
elements is expected to grow in the near
future due to growth in new constructions
▪ Medium-high feasibility – prefabricated
structures for buildings and simple
beams/columns are already produced
in Qatar
▪ Existing suppliers of concrete
elemnents Qatar include Al Sehmiah,
ACICO, Redco, Khalid Cement
Industries Complex (KCIC), and Gulf
Flag Company WLL
▪ Risk is medium, as quality and on-time
delivery must be ensured
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SOURCE: McKinsey
Supply of aggregates 060: INFRASTRUCTURE PROVISION – BASIC MATERIALS & COMPONENTS
▪ High feasibility as there are no
special technical requirements
▪ Existing suppliers of stone and
aggregate include Trelco International
Co WLL and Qatar Quarry Company
WLL
▪ Lead time is low as aggregates are
used during the initial phases of
construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~850mn:
– 2012 to 2020: USD 500mn
– 2020 to 2032: USD 350mn
▪ Additional revenue from supply of
aggregates in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ Supply of aggregates for construction of
stations and rail infrastructure
▪ Business opportunity focuses on capturing
value from construction phase, although
aggregates are applicable outside of rail
project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply of liquid concrete
▪ High feasibility as there are no
special technical requirements
▪ Existing companies in Qatar include
Beton WLL Readymix, Qatar Alpha
Beton Company, and Khalid Cement
Industries Complex WLL
▪ Lead time is low as aggregates are
used during the initial phases of
construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~1.1bn:
– 2012 to 2020: USD 300mn
– 2020 to 2032: USD 800mn
▪ Additional revenue from supply of
liquid concrete in Qatar and in the
GCC region between 2012-2032 is
not taken into account
▪ Potential for combining with provision
of more simple and complex
prefabricated elements (forward
integration of supply chain)
▪ Supply of cement used in
– Tunnel lining
– Bridges, elevated structures, and other
pre-fabricated elements
– Civil engineering structures
– Sleepers
– Potentially for masts and protection
walls
▪ Business opportunity focuses on capturing
value from construction phase, although
liquid concrete is applicable outside of rail
project in other new constructions
▪ New constructions in the region are
expected to grow in the near future
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of pre-fabricated concrete elements for stations
▪ High feasibility – prefabricated
structures for platforms, stairs,
building walls, and simple
beams/columns are already produced
in Qatar.
▪ Existing suppliers of concrete
elemnents Qatar include Al Sehmiah,
ACICO, Redco, Khalid Cement
Industries Complex (KCIC), and Gulf
Flag Company WLL
▪ Risk is medium, as quality and on-
time delivery must be ensured
▪ Low strategic value as most building
elements already produced in Qatar
▪ Concrete elements are typically not
transported large distances, thus
limited application outside of Qatar
▪ Potential for innovation is low
▪ Total revenue potential from initial
sales to Qatar Rail: USD 50mn:
– 2012 to 2020: USD 30mn
– 2021 to 2032: USD 20mn
▪ Additional revenue from
manufacturing of pre-fabricated
concrete elements in Qatar and in the
GCC region between 2012-2032 not
taken into account
▪ Potential for combining with provision
of more complex prefabricated
elements (e.g. for elevated
structures/bridges and potentially also
for tunnels and slab track)
▪ Can potentially combine with
opportunity of maintenance of bridges
and elevated structures after
construction is complete
▪ Manufacturing of prefabricated concrete
elements for buildings and stations (e.g.
stairs, platforms, and walls)
▪ Components are already produced in or
imported into Qatar (water, aggregates,
cement through Qatar Nat. Cement Co.)
▪ Main customers are building and
infrastructure developers, and demand in
the region for prefabricated concrete
elements is expected to grow in the near
future due to growth in new constructions
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of standard glass
▪ High, as existing players already
existing, e.g. Qatar Glass industries,
Dallas Glass, Jersey Glass, and Zujaj
Company
▪ Lead time is medium-long as glass is
typically fitted in the latter stages of
production construction
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited scope for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~5mn:
– 2012 to 2020: USD 2mn
– 2021 to 2032: USD 3mn
▪ Potential revenue from offering
specialized glass or glass for rolling
stock is not considered
▪ Replacement of glass is not
considered
▪ Potential to integrate with provision of
intelligent glass
▪ Provision of standard glass for buildings
and stations (windows, facades, and glass
doors)
▪ Exact amounts and technical specifications
of required glass to be determined once
architectural designs are finalised
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply of paint
▪ Medium-high feasibility, depending on
required properties and durability of
desired paint
▪ Existing companies include Silkcoat
Paints, Specialized Coatings WLL,
and German & Qatarian Paints Co
WLL
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited scope for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~22mn:
– 2012 to 2020: USD 13mn
– 2020 to 2032: USD 9mn
▪ Potential revenue from offering
advanced paint types is not taken into
account
▪ Additional revenue from Qatar and in
the GCC region between 2012-2032
is also not taken into account,
although significant potential exists
▪ Provision of paint for
– Rail superstructure
– Exterior finishings of stations
– Interior finishings of stations
▪ Exact amounts and required properties to
be determined once architectural designs
are finalise
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Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of cables
▪ Cable industry moderately
attractive due to high supplier power,
low average profitability
and consolidated industry structure
▪ Five largest players have ~50% of
GCC industry capacity
– Average EBITDA margin ~9%
– Industry driven by cost
▪ Key success factors;
– Manage raw material supply
– Gain scale advantages
▪ Medium strategic value
– Opportunity creates medium-
skilled jobs that can be leveraged
– Demand in the region is
significant and potential for Qatar
to export
– Potential competitive advantage
by leveraging low energy costs
▪ Manufacturing cables with aluminum or
copper
▪ Cables needed in rail infrastructure and
rolling stock, e.g.
– Contact wires
– Catenary wires
– Electricity supply
▪ Cables used in a variety of other industries
e.g.
– Energy building and industry
– Energy infrastructure
– Telecom infrastructure etc.
▪ Cost advantages in case of integration with
aluminum smelter
– Inventory management
– Secured supply of aluminum
– Aluminum supplied in liquid form
Business opportunity Ease of capturing Strategic value
▪ Demand for aluminum/copper cables
in Qatar of 33 mn kg in 2012
▪ Cable demand from Qatar rail only
~5% of total demand for cables in
Qatar during construction period
▪ Demand in GCC area ~1 bln kg in
2012
▪ Output of factory: 10,000 MT per year
in steady state
▪ Price: USD 5-8k per ton for aluminum
and USD 10-14k for copper
depending on raw material cost
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~135
mn:
– 2012-2020: USD ~60 mn
– 2021-2032: USD ~75 mn
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Strategic value Business opportunity Ease of capturing
SOURCE: McKinsey
Design and supply of energy efficient lighting solutions 068: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ Qatari entrepreneur has strong local
presence and track record, however
sourcing organization and know-how in
EEL products needs attention
▪ Local network and relationship with all
players in the construction value chain
(including real estate developers,
contractors, architects, MEP’ers) to
become the preferred supplier of EEL
design and sourcing services
▪ Strong sourcing organization and
sourcing strategy to cost effectively
source lamps and luminaires
▪ Marketing of value proposition of EEL
versus traditional lighting
▪ High strategic value for Qatar
– Potential of regional
expansion/champion
– In-line with QNV shift towards
creation of knowledge-based
businesses
– High value creation potential since
specialized services are not yet
provided and potential partnership
with local OEM (e.g. Aamal
company) can deliver significant
synergies
Business opportunity for Qatari entrepreneur
to provide energy efficient lighting solutions
▪ Design and source energy efficient lighting
(EEL) solutions for metro stations, airports,
commercial/residential buildings and for street
lighting
▪ Key customers are developers and main
contractors; other customers are architects,
engineers and MEPs
▪ Value proposition is the provision of an all in
solution for a more attractive product, e.g. EEL
has unique technological features, is financially
more attractive and has enhanced design
characteristics
▪ Business model is to generate income from
design/consulting fees and the mark-up for
sourcing the lamps/luminaires for the customer
▪ Initial revenue for sourcing is ~ USD 42
mn in 2013 and ~USD 2 mn for designing
energy efficient lighting solutions
▪ Revenue is projected to grow to ~USD
145 mn by 2020 for sourcing and ~USD 7
mn for designing with CAGR of ~19%
▪ Revenue drivers are the size of the
project (dependent on number and type
of lamps and complexity of solution),
negotiated design fee and mark-up on
sourcing, EBIT margin remains at ~10%
as business grows
▪ Main suppliers are OEMs that provide
LED (main technology) lamps and
luminaires, key players are Philips, Cree,
Osram, Nichia and Toyoda Gosei
▪ The most relevant substitute for energy
efficient solutions is traditional lighting
solutions, the main service substitute is
that architectural firms will do the design
of (traditional) lighting in-house
▪ Main barrier for entering the market is
building the required network/relations
with all players in the construction value
chain
Size of opportunity Other considerations
1 En.lighten: “Draft Regional Report on Efficient Lighting in the Middle East and North Africa “
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Size of opportunity Other considerations
SOURCE: McKinsey
Provision of advanced advertisement solutions 069: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ Qatari entrepreneur is well positioned to
successfully enter or expand in digital
signage market but needs to focus on
positioning and pricing
– Local companies already provide
traditional advertisement space and
some are doing some digital signage
in shopping malls
– Local network with media agencies
and directly with government
organizations is strong
– Technical capabilities are present or
easily to build
▪ High strategic value for Qatar
– Knowledge-intensive industry that
could be leveraged to grow Qatar as
a media hub and spur more IT,
media and entertainment business in
Qatar
– High export potential to current
metros (Dubai, Kuwait City, Mecca),
other countries and new sectors,
e.g., airports, malls, hotels, office
towers
– High innovation potential and high
value added jobs created
Business opportunity for Qatari entrepreneur
to provide advanced solutions for indoor out of
home (OOH) advertisement
▪ Source, install, maintain and operate indoor
digital signage advertisement systems for
metro stations, airports, commercial buildings
and other indoor public areas
▪ Additional opportunity to install more advanced
systems that can personalize content (e.g.
facial recognition, RFID scanning)
▪ Main customers are media agencies and
indirectly advertisers that buy advertisement
space
▪ Value proposition to customers is a lower price
per slot with higher reach and more flexibility in
providing content
▪ Business model is to generate income from
selling advertisement space (e.g. selling slots in
packages, pricing dependent on reach)
▪ Projected revenue from digital
advertisement displays in Qatar Rail’s
stations is growing to ~USD 23 mn per
year
▪ Initial revenue in 2016 is ~USD 5.1 mn
projected to grow to ~USD 37 mn by
2030 mainly driven by expanding base
▪ EBIT in “steady state” is ~USD 20 mn
growing with expansion of installed base,
representing a EBIT margin of ~50%
▪ Qatari advertisement spend is very
volatile and currently highly dependent on
government spend, there is a significant
challenge in attracting more
(international) advertisers
▪ Currently there are three players in Qatar
providing digital signage at small scale,
namely Scoop, (Pearl, part of UDC),
LeADers (DIA, part of Al-Attiyah Group),
and Firefly (Villagio)
▪ The main player in Qatar in traditional
OOH is q.media which has +80% of the
market but does not (yet) provide digital
solutions
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Utility diversion services 070: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ High feasibility as service is currently
already provided in Doha, typically by
local sub-contractors
▪ Low strategic value, as opportunity
does not create additional high-skilled
jobs
▪ Applicable outside of rail project in
other new constructions
▪ Low ability to export service outside
of Qatar
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~40mn:
– 2012 to 2020: USD 25mn
– 2020 to 2032: USD 15mn
▪ Additional revenue from provision of
utility diversion services in Qatar and
in the GCC region between 2012-
2032 is not taken into account
▪ Provision of utility diversion services from
main district distribution hubs to building
sites, including connection of both electrical
systems and telecom infrastructure
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
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SOURCE: McKinsey
Supply and maintenance of electrical system 071: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ High feasibility as service currently
already carried out in Qatar
▪ Existing companies include Petrofac
Qatar, Power Links Qatar, Frisco
Facilities Management, Al Ajjaj
Limited Company, Sahel Al Khor
Contracting & Building Maintenance,
Q-tec Group, Hamton International
WLL as well as numerous small
entities
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~150mn:
– 2012 to 2020: USD 60mn
– 2020 to 2032: USD 90mn
▪ Additional revenue from installing and
maintaining electrical systems in
Qatar and in the GCC region between
2012-2032 is not taken into account
▪ Installation and maintenance of electrical
systems for stations and buildings
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
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Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of water and plumbing system 072: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ High feasibility as drainage and
sewerage components are are
already manufactured in Qatar
▪ Existing companies include Frisco
Facilities Management, Sahel Al Khor
Contracting & Building Maintenance,
Electro Mechanical Engineering
Company WLL, Hamton International
WLL, as well as numerous small
entities
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~120mn:
– 2012 to 2020: USD 50mn
– 2020 to 2032: USD 70mn
▪ Additional revenue from installing and
maintaining water and plumbing
systems in Qatar and in the GCC
region between 2012-2032 is not
taken into account
▪ Installation and maintenance of water and
plumbing system for stations and buildings
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
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Size of opportunity Other considerations
SOURCE: McKinsey
Installation and maintenance of telecom infrastructure 073: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ High feasibility as service is already
carried out in Qatar
▪ Numerous existing entities exist, e.g.
subcontractors to Qtel that carry out
installation and maintenance of
broadband services in buildings
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Limited potential for innovation
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~60mn:
– 2012 to 2020: USD 20mn
– 2020 to 2032: USD 40mn
▪ Additional revenue from installing and
maintaining telecom infrastructures in
Qatar and in the GCC region between
2012-2032 is not taken into account
▪ Installation and maintenance of telecom
infrastructure for stations and buildings
▪ Business opportunity focuses on capturing
value from construction phase, although
service is applicable outside of rail project
in other new constructions
▪ New constructions in the region are
expected to grow in the near future
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of escalators and travelators 074: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ Medium ease of capturing – JV partner
critical
– High end escalators technically
complex, JV partner needed to train
staff and develop skills
– Technical skills and know-how for
repair and maintenance already in
Qatar, but not for assembly
– Independent Qatari player not
competitive against global OEMs
– Low risk since stations still useable
without functioning escalators
▪ High strategic value for Qatar
– Contributes to deepening the
manufacturing and assembly
capabilities by local sourcing of steel
and aluminium inputs
– Import substitution by locating parts
of the value chain in Qatar (e.g.
assembly)
– Build-up additional capabilities for
ongoing maintenance demand
▪ Formation of JV partnership with the OEM
– JV to do local assembly and source parts of
low complexity from Qatar (e.g., consoles,
steps) while advanced parts, (e.g., motor
and electrics) are sourced from abroad
– Maintenance and installation
– To be determined how “Qatar Rail
consortia contract for systems” impacts
setup of joint venture, especially if and
when company supplies customers outside
of QR
▪ Main revenue streams;
– New equipment sales and installation
– Service and maintenance contracts
▪ Key costs include costs of components and
worker salaries
▪ Value proposition to offer high quality escalators
at a lower cost enabled by
– Local sourcing of parts, e.g. lower costs
(TBD)
– Lower margins
▪ QR demand significant in relation to
demand from other Qatari sources
▪ High revenue opportunity from sales to
Qatar Rail project
– 2012-2020: USD ~350 mn
– 2021-2032: USD ~270 mn
▪ Annual market in the Qatar in 2012 of
USD ~4 mn, growing with ~5% p.a.
▪ Annual market in the GCC in 2012 of
USD ~46 mn, growing with ~5% p.a.
▪ Consolidated industry landscape (80% of
market covered by top 5 OEMs)
▪ Industry leaders; Otis (US), Schindler
(CH), Thyssen-Krupp (D) and Kone (FI)
▪ Potential Qatari firms Almuftah Elevators
& Escalators, Choice Elevators &
Escalators, Electromec Technical
Associates
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of lifts 075: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ Medium ease of capturing
– Currently no skills in elevator assembly
– JV partnering with leading OEM
increases feasibility as knowledge and
experience are leveraged
– Main challenges include managing the
supply chain locally in Qatar as well as
having cost efficient parts assembly
– Added value of doing local assembly to
be determined
– Medium risk since stations still useable
without functioning lifts
▪ High strategic value for Qatar
– Contributes to deepening the
manufacturing and assembly capabilities
by local sourcing of steel and aluminium
inputs
– Import substitution by locating parts of
the value chain in Qatar (e.g. assembly)
– Build-up additional capabilities for
ongoing maintenance demand
▪ Formation of JV partnership with the OEM
– Set-up of local assembly capability for parts of
low complexity e.g., cabin structure and interior
while advanced parts, e.g., motor and electrics
are sourced from abroad
– Local installation and maintenance in Qatar
– To be determined how “Qatar Rail consortia
contract for systems” impacts setup of joint
venture, especially if and when company
supplies customers outside of QR
▪ Main revenue streams
– New equipment sales and installation
– Service and maintenance contracts
▪ Key costs include costs of components e.g., motor,
electric system, railings, and consoles and worker
salaries
▪ Value proposition to offer high quality lifts at a lower
cost enabled by
– JV with strong international player
– Local sourcing of steel sheets (Qatar steel)
– Local assembly on scale
– Lower installation and maintenance costs due to
lower wages
▪ Key success factor to offer total package includ-ing
local assembly, installation and full servicing
▪ Total revenue opportunity from sales to Qatar
rail sums up to USD ~77 mn:
– 2012-2020: USD ~49 mn
– 2021-2032: USD ~28 mn
▪ Addressable market between 2012-2032 of
USD ~94 mn in Qatar (excl. QR) growing with
~5% p.a.
▪ Addressable market between 2012-2032 of
USD ~171 mn in GCC region growing with
~5% p.a.
▪ Sizing based on number of elevators for
metro phase 1, costs per elevator and share
of value chain captured (e.g. not
manufacturing
▪ Concentrated industry with top four players
Otis (US), Schindler (CH), Thyssen-Krupp (D)
and Kone (FI) accounting for 60% of the
EMEA market
▪ Potential Qatari players to take part are
Almuftah Elevators & Escalators, Choice
Elevators & Escalators, Electromec Technical
Associates
▪ EBIT margin on new equipment sales ~5%,
maintenance ~25%
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Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of HVAC 076: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ High ease of capturing since many
companies are already providing
services, e.g.
– EMCO Qatar
– MP Qatar Trading W.L.L.
– Al Malki Group of Companies
– AG Group
– Al Ajjaj Limited Company
– Consolidated Gulf Co (CGC)
– Delwan Qatar WLL
– Earth Smart Co WLL
▪ Low risk for hampering development
of metro/rail network
▪ No commercial risk for current
businesses
▪ Medium strategic value
– Potential for exports to other
GCC countries
– No creation of knowledge
intensive jobs
– Potential competitive advantage
due to relatively low labor costs
in Qatar
▪ Supply and maintenance of HVAC units
including ducting
▪ HVAC is needed in stations for Qatar Rail
and in many other buildings like
– Shopping malls
– Residential buildings
– Hotels
– Airports
– Bus stations
– Etc.
▪ Huge opportunity given climate and
growing population
▪ Customers comprise mainly of
construction companies
▪ Value proposition in cost advantage due to
scale
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~50 mn:
– 2012-2020: USD ~10 mn
– 2021-2032: USD ~40 mn
▪ N/A
OPPORTUNITY
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BUSINESSES
McKinsey & Company |
Doc ID
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Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of telecom devices 077: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ High ease of capturing since many
companies are already providing
services, e.g
– Moseco Qatar
– Qatar Communication CO
– Etisalat
– DU
– Etc.
▪ Low risk for hampering development
of metro/rail network
▪ No commercial risk for current
businesses
▪ Low strategic value due to Qatar Rail
project
– No additional exports
– No creation of knowledge
intensive jobs
– No competitive advantage due to
relatively low labor costs in Qatar
▪ Supply and maintenance of telecom
devices for employees of Qatar rail and
related companies
– Installation of fixed phone lines
– Provision of mobile phones
– Provision of mobile contracts
– Maintenance and replacement of fixed
and mobile phones
▪ Main customer is Qatar Rail and
contractors, retail stores etc.
▪ Value proposition is delivering high quality
telecom solutions at good price
Business opportunity Ease of capturing Strategic value
▪ N/A ▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~1 mn:
– 2012-2020: USD ~0.5 mn
– 2021-2032: USD ~0.5 mn
▪ Revenue potential small due to low
number of employees in stations
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
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48
Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of fire safety systems
▪ High ease of capturing since many
companies are already providing
services, e.g
– Dafoos Fire & Security Systems
WLL
– Ishield Security and Safety
Solutions
– Phoenix International WLL
– Al Alf Fire Protection Services
– Balance Automation &
Electromechanical Systems
▪ Medium risk for hampering
development of metro/rail network
(safety extremely important)
▪ Medium strategic value
– Potential for exports to other
GCC countries (rapidly growing
population and economy and
therefore construction)
– Possible creation of knowledge
intensive jobs (improving
systems, create integrated
solutions)
– Potential competitive advantage
due to relatively low labor costs
in Qatar
▪ Supply and maintenance of fire safety
equipment for stations and buildings
– Sprinkler system
– Fire extinguishers
– Fire alarm
– Emergency protocols
▪ Regular monitoring of fire safety systems
▪ Potentially training on emergency
procedures for local staff
▪ Main customers are
– Qatar Rail
– Construction companies (hotels,
shopping malls, airport, residential
buildings etc.)
▪ Value proposition around low cost due to
scale and high quality and low
maintenance
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~23 mn:
– 2012-2020: USD ~2 mn
– 2021-2032: USD ~21 mn
▪ N/A
078: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
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Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of CCTV
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Adax Business System WLL
– AG Group
– Al Saher Communication
Security and Trading Co WLL
– BRILTEC
– Dafoos Fire & Security Systems
WLL
▪ Medium risk for hampering
development of metro/rail network
(safety extremely important)
▪ No commercial risk for current
businesses
▪ Medium strategic value
– Potential for exports to other
GCC countries (rapidly growing
population and economy and
therefore construction)
– Possible creation of knowledge
intensive jobs (improving
systems, create integrated
solutions)
– Potential competitive advantage
due to relatively low labor costs
in Qatar
▪ Supply and maintenance of CCTV systems
for stations and buildings
– Camera’s
– Wiring
– Monitoring
– Etc.
▪ Main customers are
– Qatar Rail for stations
– Airport
– Hotels
– Residential buildings
– Shopping malls
– High security places (e.g. banks)
▪ Value proposition around low cost due to
scale and high quality and low
maintenance
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~62 mn:
– 2012-2020: USD ~34 mn
– 2021-2032: USD ~28 mn
▪ N/A
079: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
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50
Business opportunity Ease of capturing Strategic value
Supply and maintenance of platform screen doors 080: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ Medium ease of capturing
– Local players in this space include
Al-Bawali Group and Al-Mufta
Automatic doors
– High technical complexity and short
development time motivates need for
JV partner
– High criticality to rail operations
▪ Success depends strongly on ability to
grow business outside of QR
– Expansion of service business to
current metros (e.g., Dubai, Cairo)
– Expansion of service business to
new metros (e.g., Damascus,
Jeddah)
– Expansion into other types of
buildings (e.g.
▪ Medium strategic value, hinges on export
performance
– Build-up of more advanced
assembly capabilities
– Value created by replacing imports
with domestic supply thus retaining
profits in Qatar
– Potential to scale business
geographically (e.g., Dubai), into
adjacent segments (e.g., airports)
and into standard screen doors to
gain scale
– Creates demand for locally sourced
steel and glass inputs
▪ Formation of JV partnership with the OEM
– Set up of local parts assembly, installation
and maintenance of automated platform
screen doors
– Key parts to be sourced locally include
glass (40% of cost1, usually done locally)
for screen doors and steel and aluminum
components, more complex inputs to be
sourced from abroad
– To be determined how “Qatar Rail
consortia contract for systems” impacts
setup of joint venture, especially if and
when company supplies customers
outside of QR
▪ Value proposition to offer high quality doors at
a lower cost by leveraging cheap supply of key
input materials and do local assembly
▪ Key customers are public transportation, e.g.,
metro systems
▪ Main costs are pre-manufactured components
and worker salaries
▪ Annual revenue in QR opportunity of
USD ~10 mn mainly driven by new
equipment sales
▪ Total opportunity from sales to Qatar rail
USD ~170 mn
– 2012-2020: USD ~70 mn
– 2021-2032: USD ~100 mn
▪ Westinghouse Platform Screen Doors
(UK) top player, supplying e.g., Dubai
metro and London Underground
▪ Other key suppliers include:
– Manusa (Spain) – USD 40 mn
revenue
– Oclap (Italy) – USD 12 mn revenue
Size of opportunity Other considerations
SOURCE: McKinsey
1 Material and labor
OPPORTUNITY
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51
Size of opportunity Other considerations
SOURCE: McKinsey
Supply and maintenance of sliding doors for stations/ buildings
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Falcon Automatic Door System
– Abdulla Al Mulla Trading
Company
– DOHA UPVC Windows And
Doors
– Al Baqali Automatic Doors
– Jersey Glass
▪ Low risk for hampering development
of metro/rail network, alternatives
available
▪ No commercial risk for current
businesses
▪ Medium strategic value
– Potential for exports to other
GCC countries (rapidly growing
population and economy and
therefore construction)
– Low potential for creating high
skilled jobs
– Potential competitive advantage
due to relatively low labor costs
in Qatar ▪ Supply and maintenance of screen doors
systems for stations (excl. platforms) and
other buildings
– Assembly
– Installation
– Maintenance
▪ Type of products
– Sliding doors
– Revolving doors
– Etc.
▪ Main customers are
– Qatar Rail for stations
– Airport
– Hotels
– Residential buildings (entrance)
– Shopping malls (entrance)
▪ Value proposition around low cost due to
scale
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~16 mn:
– 2012-2020: USD ~6 mn
– 2021-2032: USD ~10 mn
▪ N/A
081: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY OPPORTUNITY
FOR EXISTING
BUSINESSES
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52 SOURCE: McKinsey
Supply and maintenance of standard advertisement equipment
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Click Printing
– Adax Business Systems WLLL
– Ayyam Marketing & Advertising
Solutions
– Blink
– Control P Seventh Spectrum
Trading
– 5PS Marketing and Advertising
– Almuftah Design & Concept
▪ Low risk for hampering development
of metro/rail network
▪ Medium strategic value
– Potential for exports to other
GCC countries: rapidly growing
population and economy and
therefore growing number of
stations/airports/shopping malls
– Low potential for creating high
skilled jobs
– Potential competitive advantage
due to relatively low labor costs
in Qatar
▪ Supply and maintenance of standard
advertisement components, excluding
exploitation of equipment
▪ Type of products
– Displays
– Banners
– Placards
– Billboards
▪ Main customers are
– Qatar Rail
– Airports
– Shopping malls
– Events
▪ Value proposition around low cost due to
scale, integrated offering across all
stations
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~15 mn:
– 2012-2020: USD ~1 mn
– 2021-2032: USD ~10 mn
▪ N/A
Size of opportunity Other considerations
082: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
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53 SOURCE: McKinsey
Supply and maintenance of audio and communication systems
▪ Medium ease of capturing since some
companies are already providing
services, e.g.
– Fontas Electronics & Services
– ADAX business systems
▪ Medium risk for hampering
development of metro/rail network
▪ Medium strategic value
– Potential for exports to other GCC
countries: rapidly growing
population and economy and
therefore growing number of
stations/airports/shopping malls
– Medium potential for creating high
skilled jobs (e.g. designing higher
quality, integrated solutions)
– Potential competitive advantage
due to relatively low energy and
labor costs in Qatar
▪ Supply and maintenance of audio and
communication systems
▪ Type of products include
– Intercoms in stations (excluding rolling
stock)
– PA systems (excluding rolling stock)
– Information screens (e.g.
arrival/departure/transfer, route and
stations planning information)
▪ Main customers include
– Qatar Rail
– Airports
– Shopping malls
– Ferry stations (if build in future)
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~3 mn:
– 2012-2020: USD ~1.5 mn
– 2021-2032: USD ~1.5 mn
▪ N/A
Size of opportunity Other considerations
083: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
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54 SOURCE: McKinsey
Supply and maintenance of lighting
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Ashghal
– Avtech (audio visual technology)
– Asif Lighting Equipment - Dubai
Airfield Lighting Division
– Lightbox International
– Al Saleh Electric Materials
– Alaa Industrial Equipment Factory
– Benchmark Trading & Engineering
Services WLL
– Nabina Mirrors & Lighting Centre
▪ Medium risk for hampering
development of metro/rail network
▪ Medium strategic value
– Potential for exports to other GCC
countries: rapidly growing
population and economy and
therefore growing number of
buildings and outside areas that
need to be illuminated
– Medium potential for creating high
skilled jobs (e.g. designing higher
quality, integrated solutions,
facilitating transition to LED/CFL)
– Potential competitive advantage
due to relatively low energy and
labor costs in Qatar
▪ Supply and maintenance of all lighting
equipment
▪ Mainly for general lighting (ambient lighting)
purposed, possible accent lighting
(decorative)
▪ Products include
– Incandescent light bulbs
▫ Halogen (high pressure, halogen
gases)
▫ Xenon
– Fluorescent (tube, phosphor)
– Neon
– LED
– CFL (compact fluorescent lamps)
– Cold cathode fluorescent lamps (CCFL)
▪ Customers include Qatar Rail, airports,
shopping malls, residential/commercial
buildings, municipalities (street lighting)
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~36 mn:
– 2012-2020: USD ~5 mn
– 2021-2032: USD ~31 mn
▪ N/A
Size of opportunity Other considerations
084: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
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55 SOURCE: McKinsey
Installation of toilet facilities
▪ Installation of toilet facilities in stations and
buildings, including integrating with waste
and sanitation plumbing system
▪ Toilets would likely be procured from
international toilet/ceramic manufacturers,
eg. Caroma, Gerber, Kohler or American
Standard – and installed locally onsite
▪ Value proposition driven by ability to
identify and source right toilet meeting
architectural and interior design
specification within the specified delivery
deadlines for final installation
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
085: INFRASTRUCTURE PROVISION – BUILDING TECHNOLOGY
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~2 mn:
– 2012-2020: USD ~1 mn
– 2021-2032: USD ~1 mn
▪ Several Qatari companies already in
this space, and opportunity can be
captured by local MEP contractor
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience
▪ Low
– Does not create some
knowledge-based jobs
– Is required as a basic service for
the country
▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
OPPORTUNITY
FOR EXISTING
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Doc ID
# 0
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56 SOURCE: McKinsey
Interior design services
▪ Several Qatari businesses are
already active in this space, including
Qatar Design Consortium, Vandome
Trading, Vasco Trading & Contracting
– But limited experience in interior
design for urban transport
stations
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience
▪ Provision of interior design services for
stations and other buildings
▪ Responsible for interior space composition
and design, including selection of all
customer-facing materials and objects,
including wall claddings, floor tiles/carpets,
ceiling elements, furnishings
▪ Also responsible for selection and lay-out
of acoustics and lighting technologies
▪ Value proposition driven by ability to foster
right “customer experience” (convenience
and look and feel), within budget
▪ Revenue typically based on the value of
the total project or on man-hours required
Business opportunity Ease of capturing Strategic value
▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
▪ Qatar Rail may consider requiring
certain percentage of
materials/objects used for interior
design are procured locally
Size of opportunity Other considerations
097: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Medium to high:
– Supports region’s booming
construction industry
– Creates knowledge-based jobs
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~42 mn:
– 2012-2020: USD ~32 mn
– 2021-2032: USD ~10 mn
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
57 SOURCE: McKinsey
Supply of wall and floor tiles
▪ Several Qatari businesses are
already active in this space, including
Decoration World WLL, Rafco, Jersey
Group, each with strong ties with
several international suppliers of wall
and floor tiles
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience
▪ Supply of wall and floor tiles, for station
interiors as well as other buildings within
guidelines specified by interior design and
architectural blueprint
▪ Materials also need to comply with safety
standards set by Qatar Rail and Qatar
government regulators
▪ May involve procuring and
assembling/integrating different materials
▪ Value proposition driven by ability to
identify and source right material from
suppliers within the specified delivery
deadlines for final installation
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
098: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Medium
– Supports region’s booming
construction industry
– Creates few knowledge-based
jobs
– Creates few jobs (~10-30 FTEs)
and is relatively small business
opportunity
▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
▪ May also be responsible for onsite
delivery and installation
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~70 mn:
– 2012-2020: USD ~40 mn
– 2021-2032: USD ~30 mn
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
58 SOURCE: McKinsey
Supply of ceiling elements
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
099: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Several Qatari businesses are
already active in this space,
Decoration World WLL, QaProfile,
Jersey Group, Robust Qatar, each
with strong ties with several
international suppliers of ceiling
elements
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience ▪ Supply of ceiling elements for station
interiors as well as other buildings within
guidelines specified by interior design and
architectural blueprint
▪ Materials also need to comply with safety
standards set by Qatar Rail and Qatar
government regulators
▪ May involve procuring and
assembling/integrating different materials
▪ Value proposition driven by ability to
identify and source right material from
suppliers within the specified delivery
deadlines for final installation
▪ Medium
– Supports region’s booming
construction industry
– Creates few knowledge-based
jobs
– Creates few jobs (~10-30 FTEs)
and is relatively small business
opportunity
▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
▪ May also be responsible for onsite
delivery and installation
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~10 mn:
– 2012-2020: USD ~8 mn
– 2021-2032: USD ~2 mn
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
59 SOURCE: McKinsey
Supply of wall sheathing elements
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
100: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Several Qatari businesses are
already active in this space, including
Jersey Group, each with strong ties
with several international suppliers
▪ Does not put the Qatar Rail project at
risk
▪ Supply of wall sheathing for station
exteriors as well as other buildings within
guidelines specified in the architectural
blueprint
▪ Wall sheathing is first layer of covering on
an exterior wall, fastened to the wall studs,
and is primarily used within exterior walls
as insulation and weather/water-proofing
▪ Materials also need to comply with safety
standards set by Qatar Rail and Qatar
government regulators
▪ May involve procuring and
assembling/integrating different materials
▪ Value proposition driven by ability to
identify and source right material from
suppliers within the specified delivery
deadlines for final installation
▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
▪ May also be responsible for onsite
delivery and installation
▪ Medium
– Supports region’s booming
construction industry
– Creates few knowledge-based
jobs
– Creates few jobs (~10-30 FTEs)
and is relatively small business
opportunity
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~25 mn:
– 2012-2020: USD ~15 mn
– 2021-2032: USD ~10 mn
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
3
60 SOURCE: McKinsey
Installation of tiles, ceiling elements and wall sheathing elements
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
101: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Several Qatari businesses are
already active in this space, including
Jersey Group, each with strong ties
with several international suppliers
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience
▪ Final installation of tiles, ceiling elements
and wall sheathing elements on site
▪ Limited to final installation – and so does
not involve any design, manufacturing or
procurement of the material
▪ Key success driver is logistical alignment
with multiple suppliers and site
contractor/project management to ensure
installation on time and as required ▪ Would likely be included by the
suppliers of the tiles, ceiling elements
and wall sheathing elements – and so
would not be procured by Qatar Rail
▪ Low
– Supports region’s booming
construction industry
– Creates no knowledge-based
jobs
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~25 mn:
– 2012-2020: USD ~15 mn
– 2021-2032: USD ~10 mn
OPPORTUNITY
FOR EXISTING
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Doc ID
# 0
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61 SOURCE: McKinsey
Manufacture of non electric doors
▪ Several Qatari companies already in
this space, including Al Einkaz
Trading & Industry, Alma Aluminum
and Steel Company, Folda Qatar,
Ghanim bin Saad & Sons
▪ Does not put the Qatar Rail project at
risk
▪ Low
– Supports region’s booming
construction industry
– Creates no knowledge-based jobs
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
102: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Manufacturing of doors from stainless steel,
aluminum, glass and other materials
revolving doors for stations and other
buildings, including:
– Normal doors
– Revolving doors
– Sliding doors
▪ Key success driver is sourcing quality
materials, cost management and reliability ▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
▪ May also be responsible for onsite
delivery and installation
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~4 mn:
– 2012-2020: USD ~2 mn
– 2021-2032: USD ~2 mn
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
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62 SOURCE: McKinsey
Installation of non-electric doors
▪ Installation of doors from stainless steel,
aluminum, glass and other materials
revolving doors for stations and other
buildings, including:
– Normal doors
– Revolving doors
– Sliding doors
▪ Key success driver is ensuring speed and
reliability of installation
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
103: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Several Qatari companies already in
this space, including Al Einkaz
Trading & Industry, Alma Aluminum
and Steel Company, Folda Qatar,
Ghanim bin Saad & Sons
▪ Does not put the Qatar Rail project at
risk
▪ Low
– Supports region’s booming
construction industry
– Creates no knowledge-based jobs
▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
▪ May also be responsible for onsite
delivery and installation
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~1 mn:
– 2012-2020: USD ~0.5 mn
– 2021-2032: USD ~0.5 mn
OPPORTUNITY
FOR EXISTING
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McKinsey & Company |
Doc ID
# 0
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63 SOURCE: McKinsey
Interior and exterior painting services
▪ Several Qatari companies already in
this space, including National Paints
Factory and Joutun Paints
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience
▪ Painting of exterior walls and interior walls
and ceilings in stations and other buildings
in alignment with interior designer
specifications
▪ Paints can be manufactured locally or
procured internationally depending on the
exact technical requirements
▪ Paint used will need to comply with safety
standards set by Qatar Rail and Qatar
government regulators
▪ Key success driver is ensuring speed and
reliability of installation
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
104: INFRASTRUCTURE PROVISION – INTERIOR FINISHINGS
▪ Low
– Supports region’s booming
construction industry
– Creates no knowledge-based jobs
▪ Can be included within the main
contractor’s contract – and so would
not be procured by Qatar Rail
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~15 mn:
– 2012-2020: USD ~10 mn
– 2021-2032: USD ~5 mn
OPPORTUNITY
FOR EXISTING
BUSINESSES
McKinsey & Company |
Doc ID
# 0
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64
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of wall lining systems 106: INFRASTRUCTURE PROVISION – EXTERIOR FINISHINGS
▪ Medium feasibility – input factors can
be sourced locally or within GCC at
extremely competitive costs
▪ Know-how within interior lining R&D
and testing will need to be built up in
order to offer certified cladding
systems – recommended entry
strategy is to license existing wall
lining system from foreign company
while building up expertise and
proprietary system
▪ Low risk to the Qatar Rail project
potential risk to customer experience
and quality perception
▪ Medium – high as it creates
moderately skilled jobs within
advanced materials
▪ Potential to support Qatar’s plastic
manufacturing sector, depending on
whether high-grade plastics are
manufactured locally or sourced
abroad
▪ Creates steady steam of revenue
from wall cladding replacement
▪ Opportunity to support local and
regional construction boom
▪ Opportunity for Qatari entrepreneur to
manufacture pre-fabricated wall lining
systems in order to gain market share from
current imported wall lining
▪ Wall lining offers improved durability,
building performance, and aesthetics on
both internal and external facades
▪ Main customers range across almost all
building types (e.g. public sector,
residential and non-residential buildings),
and penetration rates are currently low
▪ Key decision makers are primarily
developers and main contractors and to
lesser extent architects, engineers, and
designers
▪ Value proposition is comparable quality to
imported systems, lower costs, products
tailored to local market, and speed to
market
▪ Final look and feel of interior linings
will be crucial
▪ Opportunity to build up know-how
within high-tech panel systems, e.g.
in regards to noise reduction
properties, safety, and durability
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~20mn:
– 2012 to 2020: 10mn
– 2021 to 2032: 10mn
▪ Additional revenue from the GCC
region between 2012-2032 is also not
included, although significant
potential exists – wall lining makes up
~1-1.3% of building construction
costs
OPPORTUNITY
FOR NEW
BUSINESSES
See also the separate business
case booklet and brochure for
a detailed business case
of this opportunity
McKinsey & Company |
Doc ID
# 0
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65
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of protection walls 107: INFRASTRUCTURE PROVISION – EXTERIOR FINISHINGS
▪ High feasibility for concrete, wood,
steel, aluminum, panel, and acrylic
walls (acrylic would be imported) as
capabilities already present in Qatar
▪ Existing companies of aluminum and
steel walls and facades include High
Vision and Jersey Architectural
▪ If fiberglass walls are required, a
pultrusion plant would need to be
established as currently none exist in
Qatar (low quality fiberglass is
produced by e.g. Al Muftah Fiber,
Gulf Glass Fiber, Teitan Fiberglass)
▪ Low strategic value if walls are made
out of basic materials as opportunity
does not create high-skilled jobs
▪ More complex materials and complex
finishes would build up architectural
and engineering knowledge that can
be applied outside of rail project
▪ A pultrusion plant would have
numerous applications outside of rail
(e.g. construction reinforcements,
corrosion-resistant floor mats, and
high strength tunneling components)
and and would have high strategic
value
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~200mn:
– 2012 to 2020: USD 60mn
– 2021 to 2032: USD 140mn
▪ Potential revenue from offering
innovative, more expensive walls is
not taken into account
▪ Additional revenue from Qatar and in
the GCC region between 2012-2032
is also not taken into account
▪ Final “look and feel” of the protection
walls is important, and combining
functionality, design, and quality will
thus be crucial
▪ Potential to integrate solar panels into
protection walls
▪ Opportunity to purchase more
expensive fiberglass protection walls
(together with fiberglass masts for
electrification) to support potential
new pultrusion plant
▪ Provision of ~100km of protection walls to
minimise noise, sight, and potentially
vibrations from railway, including design,
manufacture, and installation
▪ Protection walls can be made from
numerous materials (e.g. concrete, wood,
steel, aluminium, composite panels,
fiberglass, acrylic), depending on desired
noise reduction, quality, cost, and finish
▪ Main customer will be railway as well as
public entities (e.g. for motorways, airports,
and public parks)
OPPORTUNITY
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Design and landscaping services for parks/green areas
▪ Design and landscaping of parks and green
areas around the stations, including design
of lay-out and pathways, selection of
plants/trees and incorporation of special
features
▪ Opportunity for planning and design to also
include water-efficient components,
including efficient irrigation techniques to
decrease need of water
▪ Key success driver is designing attractive
external areas which are water efficient
Business opportunity Ease of capturing Strategic value
▪ Might be procured together with the
actual construction/landscaping of the
parks and green areas
Size of opportunity Other considerations
108: INFRASTRUCTURE PROVISION – EXTERIOR FINISHINGS
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~5 mn:
– 2012-2020: USD ~3 mn
– 2021-2032: USD ~2 mn
▪ Medium
– Supports region’s booming
construction industry
– Creates knowledge-based jobs
(landscape engineers)
▪ Several Qatari companies already in
this space, including Al Nakheel
Agriculture and Trading Company,
and Sidra Agriculture Company
▪ Does not put the Qatar Rail project at
risk
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Construction of parks/green areas
▪ Construction of parks around station and
building areas within the specifications set
by the landscaping design
▪ Involves full range of activities, including
earthworks, planting trees/plants, laying
pathways, installing external lighting and
laying irrigation facilities
▪ May also involve installation of public
recreation facilities, such as benches,
tables and outdoor playground
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
109: INFRASTRUCTURE PROVISION – EXTERIOR FINISHINGS
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~125
mn:
– 2012-2020: USD ~75 mn
– 2021-2032: USD ~50 mn
▪ Several Qatari companies already in
this space, including Al Nakheel
Agriculture and Trading Company,
and Sidra Agriculture Company
▪ Does not put the Qatar Rail project at
risk
▪ Medium
– Supports region’s booming
construction industry
– Creates knowledge-based jobs
(landscape engineers)
▪ Might be procured together with the
design of the parks and green areas
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Contents
▪ Prioritized opportunities
– Infrastructure provision
– Infrastructure operations
– Rolling stock provision
– Transport operations
– Other opportunities
▪ Filtered out opportunities
▪ Appendix – Potential additional opportunities
McKinsey & Company |
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69 SOURCE: McKinsey
Technical facility management services 114: INFRASTRUCTURE OPERATIONS – PROPERTY AND STATION MANAGEMENT
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
▪ Several Qatari companies already in
this space, including Waseef Property,
Como Facility Management, Goodwin
Qatar, Lynx Qatar, Al Doha
Maintenance and Services
▪ Does not put the Qatar Rail project at
risk
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~35 mn:
– 2012-2020: USD ~5 mn
– 2021-2032: USD ~30 mn
▪ Medium
– Supports region’s booming
construction industry
– Creates some knowledge-based
jobs (MEP engineers and
technicians)
▪ Provision of technical facility management
services, including electrical, mechanical
and plumbing repairs and maintenance
across all stations and non-rail
infrastructure
▪ Value proposition: single point of contact
and in-depth knowledge property and
equipment
▪ Key success drivers include customer
service, quick deployment of relevant
personnel, technical expertise/capability
and cost management
▪ Maintenance and repairs can be
procured separately, or as part of
umbrella agreement which includes
end-to-end property and facility
management
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Infrastructural facility management services 115: INFRASTRUCTURE OPERATIONS – PROPERTY AND STATION MANAGEMENT
Business opportunity Ease of capturing Strategic value
▪ Cleaning and security services can be
procured separately, or as part of
umbrella agreement which includes
end-to-end property and facility
management
▪ Station cleaning services may be
procured together with rolling stock
cleaning services
Size of opportunity Other considerations
▪ Several Qatari companies already in
this space, including Waseef Property,
Como Facility Management, Qatar
Cleaning Company (QCC), Al
Mutawassit, Lynx Qatar, Aamal
Services, OTS Cleaning Qatar
▪ Specialised security companies
include
– Qatar Security Services
– Al Bateel Securicor
– Bin Arbaid Group
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~12 mn:
– 2012-2020: USD ~1 mn
– 2021-2032: USD ~11 mn
▪ Provision of infrastructural facility
management services, including ancillary
services such as cleaning and security
across all stations and non-rail
infrastructure
▪ Value proposition: single point of contact
and in-depth knowledge property and
equipment
▪ Key success drivers include customer
service, quick deployment of relevant
personnel, technical expertise/capability
and cost management
▪ Low
– Supports region’s booming
construction industry
– Does not create some
knowledge-based jobs
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Commercial property management services 116: INFRASTRUCTURE OPERATIONS – PROPERTY AND STATION MANAGEMENT
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
▪ Several Qatari or Qatari-based
companies offer all or some of the
services in this space, including
Waseef Property, Colliers International
Qatar, Properties Real Estate, Al
Asmakh Real Estate Development
Company, Lynx Qatar
▪ Examples of tenancy consulting and
asset optimization companies include
▪ Does not put the Qatar Rail project at
risk
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~2 mn:
– 2012-2020: USD ~1 mn
– 2021-2032: USD ~1 mn
▪ Provision of commercial property
management services, including
– Leasing (tenant identification and
negotiation, vacancy advertising and
sales agent management)
– Tenancy management (contract
administration, rent collection, etc.)
– Tenancy consulting, which is providing
financial analysis services to advise on
tenant segments to pursue
– Property asset optimization services,
which is advising on how to procure,
manage, maintain and dispose of assets
▪ Key success drivers include robust financial
analysis and knowledge Qatar real estate
market
▪ Qatar Rail may choose to manage
leasing and tenancy management
internally
▪ Medium
– Supports region’s booming
construction industry
– Creates some knowledge-based
jobs (financial analysts)
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Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Automated car parking services 119: INFRASTRUCTURE OPERATIONS – STATION SERVICES
▪ Overall ease of capturing high
– Low technical complexity using
imported proven technologies
– Low operational know-how and
skills needed
– No risk of project impacting
metro operations
▪ Low strategic value for Qatar
– Most value add activities in
manufacturing and developing
the actual technology done
outside Qatar. Thus, no creation
of high value-adding jobs
– Low export potential since model
is easily copied by local
companies
– Manufacturing opportunities of
steel components created that
could be sourced locally
▪ Operation of automated parking solutions
in connection to select stations
▪ Parking technology and construction of
parking space sourced from establish ed
player
– Cost USD 10-15mn, 500 car capacity
– Pay-back time 2-3 years
▪ Value proposition to offer convenient, safe,
state of the art parking
▪ Key locations for parking spaces;
– Metro hubs and end-of-line stations
– Special destinations, e.g., airport,
world cup stadiums and Education City
– Large industrial areas
▪ Key revenue stream in parking rents and
advertisement fees from facade space rent
▪ Major costs are construction costs and cost
of equipment and ticketing machines
▪ Potential to expand to convenient storage
and safety business
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~13 mn
from operations, e.g. parking fees:
– 2012-2020: USD ~2 mn
– 2020-2032: USD ~11 mn
▪ Medium upfront investment
▪ Need to carefully map out in which
stations and sites to install solution in
to maximize usage
▪ Need to start plan now with station
architects on how to integrate in
stations
▪ Concept tested in small scale in
Dubai
Size of opportunity Other considerations
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Retail services – Travel agencies
▪ High ease of capturing since many
companies are already providing
services, e.g.
– E2E Travel & Tours
– First Choice Travel
– Happy Journey Travels
– Lusail Travel
– Gulf Ghazal Travels
– Travel Mannai Corporation
– Regency Holidays
– Qatar Adventure
▪ No risk for hampering development of
metro/rail network itself
▪ Low strategic value
– No real potential for exports to other
GCC countries due to Qatar Rail
project
– No real potential for creating high
skilled jobs
– No competitive advantage
▪ Running a chain of outlets that provide
travel services to passengers of the metro
and rail network
▪ There are several types of travel services
that can be provided
– Travel agency that provides advice and
books trip for tours, vacations etc.
– Currency exchange services
– Guided tours in and around the stations
and in Doha city (including Olympic
games and World Cup stations)
▪ Chain can be extended to other places like
– Airports
– Shopping malls
– Ferry stations (if build in future)
▪ Revenues from sales to customers with a
premium due to convenient location
▪ Main costs in rental payments to Qatar Rail
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~65 mn:
– 2012-2020: USD ~5 mn
– 2021-2032: USD ~60 mn
▪ N/A
Size of opportunity Other considerations
120: INFRASTRUCTURE OPERATIONS – STATION SERVICES OPPORTUNITY
FOR EXISTING
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Retail services – Convenience stores
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Carrefour
– Lulu Hypermarket
– Grand Mart Trading Co
– SADITA Holding Co
– Food Palace
– Ahmed Salmin Shamlan & Partners
– Al Safeer Centre
▪ No risk for hampering development of
metro/rail network itself
▪ Low strategic value
– No real potential for exports to other
GCC countries due to Qatar Rail
project
– No real potential for creating high
skilled jobs
– No competitive advantage
▪ Running a chain of convenience stores or
mini-markets, in franchise or proprietary
concept
▪ Stores sells all type of convenience
products like
– Groceries
– Toiletries
– Soft drinks
– Tobacco products
– Household items
▪ Chain can be extended to other places like
– Airports
– Shopping malls
– Ferry stations (if build in future)
▪ Revenues from sales to customers with a
premium due to convenient location
▪ Main costs in rental payments to Qatar Rail
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~155
mn:
– 2012-2020: USD ~5 mn
– 2021-2032: USD ~150 mn
▪ N/A
Size of opportunity Other considerations
121: INFRASTRUCTURE OPERATIONS – STATION SERVICES OPPORTUNITY
FOR EXISTING
BUSINESSES
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75 SOURCE: McKinsey
Retail services – Kiosks and newspaper stands
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Abu Karbal Bookshop
– Al Almyah Bookshop
– Al Elmeyah Bookshop
– Al Maaref International Trading
Company LLC
– Jarir Book Store
▪ No risk for hampering development of
metro/rail network itself
▪ Low strategic value
– No real potential for exports to other
GCC countries due to Qatar Rail
project
– No real potential for creating high
skilled jobs
– No competitive advantage
▪ Running a chain of kiosks and/or managing
news paper stands
▪ Sells products like
– Newspapers
– Books
– Magazines
– Etc.
▪ Chain can be extended to other places like
– Airports
– Shopping malls
– Ferry stations (if build in future)
▪ Revenues from sales to customers with a
premium due to convenient location
▪ Main costs in rental payments to Qatar Rail
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~27 mn:
– 2012-2020: USD ~2 mn
– 2021-2032: USD ~25 mn
▪ N/A
Size of opportunity Other considerations
122: INFRASTRUCTURE OPERATIONS – STATION SERVICES OPPORTUNITY
FOR EXISTING
BUSINESSES
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Retail services – Coffee shops
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Colombian Coffee House
– Al Khaima Restaurant & Coffee Shop
– Al Kharess Coffee
– Chalet De Café
– Le Gourmet Restaurant
– Al Khaima Restaurant & Coffee Shop
– Al Mandarin Cocktail & Coffee Shop
▪ No risk for hampering development of
metro/rail network itself
▪ Low strategic value
– No real potential for exports to other
GCC countries due to Qatar Rail
project
– No real potential for creating high
skilled jobs
– No competitive advantage
▪ Running a chain of coffee shops and cafés
▪ Chain can be extended to other places like
– Airports
– Shopping malls
– Ferry stations (if build in future)
▪ Revenues from sales to customers with a
premium due to convenient location
▪ Main costs in rental payments to Qatar Rail
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~52 mn:
– 2012-2020: USD ~2 mn
– 2021-2032: USD ~50 mn
▪ N/A
Size of opportunity Other considerations
123: INFRASTRUCTURE OPERATIONS – STATION SERVICES OPPORTUNITY
FOR EXISTING
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Retail services – Restaurants
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Al Jassim Group
– Al Sindebad Restaurant & Kitchen
– Al Tazaj Fakeih
– Arbys
▪ No risk for hampering development of
metro/rail network itself
▪ Low strategic value
– No real potential for exports to other
GCC countries due to Qatar Rail
project
– No real potential for creating high
skilled jobs
– No competitive advantage
▪ Running a chain of (fast food) restaurants
that sells food and drinks on the premises
or for take away in franchise or proprietary
concept
▪ Chain can be extended to other places like
– Airports
– Shopping malls
– Ferry stations (if build in future)
▪ Revenues from sales to customers with a
premium due to convenient location
▪ Main costs in rental payments to Qatar Rail
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~105
mn:
– 2012-2020: USD ~5 mn
– 2021-2032: USD ~100 mn
▪ N/A
Size of opportunity Other considerations
124: INFRASTRUCTURE OPERATIONS – STATION SERVICES OPPORTUNITY
FOR EXISTING
BUSINESSES
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Retail services – Laundry services
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Pressto Quality Express
Drycleaners
– Prestige Laundry Group
– Magic Laundry LLC
– Al Ahmadi Laundry & Dry Cleaning
– Al Eid Industrial Laundry
– Al Rayes Laundry Equipment &
Accessories
– Arabian Modern Laundry
▪ No risk for hampering development of
metro/rail network itself
▪ Low strategic value
– No real potential for exports to other
GCC countries due to Qatar Rail
project
– No real potential for creating high
skilled jobs
– No competitive advantage
▪ Running a chain of outlets that provide dry
cleaning and laundry services
▪ Chain can be extended to other places like
– Airports
– Shopping malls
– Ferry stations (if build in future)
▪ Revenues from sales to customers with a
premium due to convenient location
▪ Main costs in rental payments to Qatar Rail
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~62 mn:
– 2012-2020: USD ~2 mn
– 2021-2032: USD ~60 mn
▪ N/A
Size of opportunity Other considerations
125: INFRASTRUCTURE OPERATIONS – STATION SERVICES OPPORTUNITY
FOR EXISTING
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Retail services – Car rentals
▪ High ease of capturing since many
companies are already providing
services, e.g.
– Europcar Qatar
– Rent Car Doha
– Sixt Cars
– Aldeera Travel
– Gulf Ghazal Rent a Car Co WLL
– Regency Fleets
▪ No risk for hampering development of
metro/rail network itself
▪ Low strategic value
– No real potential for exports to other
GCC countries due to Qatar Rail
project
– No real potential for creating high
skilled jobs
– No competitive advantage
▪ Running a chain that provides car rental
services
▪ Chain can be extended to other places like
– Airports
– Shopping malls
– Ferry stations (if build in future)
▪ Revenues from sales to customers with a
premium due to convenient location
▪ Main costs in rental payments to Qatar Rail
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales
to Qatar rail customers sums up to
USD ~120 mn:
– 2012-2020: USD ~5 mn
– 2020-2032: USD ~115 mn
▪ N/A
Size of opportunity Other considerations
126: INFRASTRUCTURE OPERATIONS – STATION SERVICES OPPORTUNITY
FOR EXISTING
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80 SOURCE: McKinsey
Waste services for stations and railway operations
▪ Provision of waste management services,
including collecting waste from waste bins
and transportation to landfills and recycling
plants
▪ May include the actual supply and
installation of waste collections points
▪ Value proposition is commitment to
recycling and multiple pick-up times
scheduled per day
▪ Key success drivers include cost
management, specialized equipment and
coordination with in-station cleaning
services (infrastructural property
management)
Business opportunity Ease of capturing Strategic value
▪ May be procured together with station
cleaning services
Size of opportunity Other considerations
128: INFRASTRUCTURE OPERATIONS – UTILITIES AND ENERGY PROVISION
▪ Several Qatari companies already in
this space, including Boom Waste
Treatment Company, MCC Qatar,
Aamal Services, Al Haya Waste
Management, Averda Qatar, OTS
Cleaning Qatar
▪ Does not put the Qatar Rail project at
risk – but will impact on customer
experience
▪ Total revenue opportunity from sales
to Qatar rail sums up to USD ~3 mn:
– 2012-2020: USD ~1 mn
– 2021-2032: USD ~2 mn
▪ Low
– Does not create some
knowledge-based jobs
– Is required as a basic service for
the country
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Contents
▪ Prioritized opportunities
– Infrastructure provision
– Infrastructure operations
– Rolling stock provision
– Transport operations
– Other opportunities
▪ Filtered out opportunities
▪ Appendix – Potential additional opportunities
McKinsey & Company |
Doc ID
# 0
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Business opportunity Ease of capturing Strategic value
Manufacture of interior replacements 135: ROLLING STOCK PROVISION – BODY
▪ Possibility to source major
components internationally and do
minor modifications in Qatar
▪ Existing furniture suppliers can enter
this space, including Jaidah
Furniture, Al Mana & Partners
▪ Long ramp-up time possible as
replacements of interiors not required
before mid 2020s
▪ Qatar has no proven expertise in
designing interiors, and no cost
advantage to manufacture
– High-end ergonomic designers
primarily based in Europe (eg.
TDI, Koshii Maxelum, Fenix
International)
– Cost-efficient alternatives in
China (eg. FCNT)
▪ Limited strategic value for Qatar
given:
– Does not create knowledge-
based job opportunities
▪ Manufacture and supply of rolling stock
interior replacements, including carpets,
upholstery, furniture fittings, door handles
▪ Opportunity to replace the interiors
originally supplied by OEM with minor local
customization of interiors from other
suppliers
▪ Possibility to extend services to all types of
domestic/region public transport operators
(train, metro, bus, ferry)
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~3mn, all
incurred in 2021-2032 (only considers
interior replacement for rolling stock
procured in Metro phase 1)
▪ Additional revenue from other
companies not taken into account
▪ Possibility that OEM supplying rolling
stock will also supply interior
replacements
Size of opportunity Other considerations
SOURCE: McKinsey
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Contents
▪ Prioritized opportunities
– Infrastructure provision
– Infrastructure operations
– Rolling stock provision
– Transport operations
– Other opportunities
▪ Filtered out opportunities
▪ Appendix – Potential additional opportunities
McKinsey & Company |
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Rolling stock safety inspections 153: TRANSPORT OPERATIONS – ROLLING STOCK AND SPARE PARTS MANAGEMENT
▪ Qatari companies involved in vehicle
inspection could extend into this area,
such as Qatar Technical Inspection
Company Woqod Vehicle Inspection,
Qatar Airways
▪ Qatar Airways’ safety capabilities
should be leveraged as an example
▪ Potentially high risk due to difficulty in
ramping up capabilities from scratch
– which exposes project to risk
▪ Providing services only to Qatar Rail
may not provide sufficient scale for
business to be attractive
▪ Critical service needs to be up and
running before launch
▪ Medium strategic value given
– Opportunity for Qatari company
to provide similar services to
other regional railway operators
– Provides ongoing profitable
revenue stream
– Creates technical job
opportunities for engineers
(maintenance engineers,
technicians) is a knowledge
intensive sector
– Technical skills and equipment
can be used to cement Qatar
reputation for quality and safety
▪ Provision of safety inspection service to
ensure overall compliance with safety and
maintenance regulation
▪ Minimizing safety risk would require
partnership with established player until
local company is up and running
– Will require several years to build up
the necessary capabilities
▪ Key success drivers:
– Technical certification, including of
inspectors
– Rigorous operational processes
▪ Requires a joint venture with established
rolling stock safety inspection company at
least in initial 3-5 years
Business opportunity Ease of capturing Strategic value
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~ 35-40mn:
– 2012-2020: 3.5mn – 4mn
– 2021-2032: 30mn–35mn
▪ No revenue potential from sales to
other Qatar companies expected
▪ Total revenue potential from sales
across GCC: USD ~1.4mn
▪ Railway operators typically obliged to
outsource this service by law to get a
certificate of approval from
government authorities/regulator
▪ Suppliers either national bodies (e.g.
German Federal Railway Authority)
or private institutions, such as TÜV,
Dekra, Bureau Veritas, Intertek
▪ Private safety inspection companies
are often also involved in inspecting
automobiles
Size of opportunity Other considerations
SOURCE: Expert interview, McKinsey
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Maintenance and repair of rolling stock 154: TRANSPORT OPERATIONS – ROLLING STOCK AND SPARE PARTS MANAGEMENT
SOURCE: Expert interview, McKinsey
▪ Currently no capability for rolling
stock, but Qatar Airways’ maintenance capabilities can be
leveraged as an example
▪ Qatari companies currently providing
vehicle maintenance/repair service,
such as Al Mannai, could enter this
space
▪ Qatari company will require JV
agreement to ramp-up its capability
– Minimizing safety risk would
require partnership with
established player until local
company is up and running
– Will require several years to build
up the necessary capabilities
▪ Critical for Qatar Rail success
▪ Medium strategic value given
– Opportunity for Qatari company
to provide similar services to
other regional railway operators
– Provides ongoing profitable
revenue stream
– Knowledge intensive sector
which creates technical job
opportunities for engineers
(maintenance engineers,
technicians)
▪ Provision of maintenance and repair
services for rolling stock (including
workshops)
▪ Option to JV with OEM or with large
maintenance provider
– OEMs such as Siemens have entered
JVs with local providers
– Euromaint has used JVs with local
partners to expand outside Sweden
▪ JV could stipulate a gradual phasing out of
the OEM and replacement by local Qatari
company as expertise is built
▪ Key success drivers:
– Technical certification and expertise
– Cost control
– Rigorous operational processes
Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
▪ Total revenue potential from Qatar
Rail: USD ~600 – 625mn:
– 2012-2020: 60mn – 65mn
– 2021-2032: 540mn–560mn
▪ No revenue potential from sales to
other Qatar companies expected
▪ Total revenue potential from sales
across GCC: USD ~20-25mn
▪ Services are typically either
performed by railway operator, OEM
and only sometimes by independent
maintenance company (NTV)
▪ Leading suppliers include Euromaint,
Deltarail, Nedtrain – but the market is
very fragmented
▪ Several European suppliers are
recently privatized maintenance units
of national railway operators
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Rolling stock spare parts management 155: TRANSPORT OPERATIONS – ROLLING STOCK AND SPARE PARTS MANAGEMENT
▪ Qatari logistics and spare parts
distributors, could move into this
space
– For example an automobile
spare parts management
company such as Al Mannai can
additionally support rolling stock
parts
▪ But there is a high risk of operational
disruptions if supply chain is mis-
managed
▪ Opportunity for company to use Qatar
Rail as a nucleus before serving
other clients as a regional supply
chain management company
▪ Potential to serve regional railway,
airline and manufacturing companies
▪ Provides ongoing profitable revenue
stream
▪ Opportunity to leverage synergies
with Qatar Airways, car/machinery
maintenance companies
▪ Creates knowledge based jobs
(demand forecasters, supply chain
specialists)
▪ Management of rolling stock spare parts
inventory, including
– Order management
– Warehousing
– Storage and distribution
▪ Local supply chain service provider could
initially manage only low risk supply chain
requirements
▪ Customer will either be the maintenance
contractor or the railway operator
▪ Qatari company could use JV agreement
to ramp-up its capability in this space, with
either:
– Railway spare parts suppliers, such as
Alstom (FR)
– Global logistics provider, such as
UPS, DHL, DB Schenker (DE),
Kuehne + Nagel (DE)
Business opportunity Ease of capturing Strategic value
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~ 28-34mn:
– 2012-2020: 3mn – 3.5mn
– 2021-2032: 25mn – 30mn
▪ Total revenue potential from sales to
other Qatar companies: USD ~60mn
▪ Total revenue potential from sales
across GCC: USD ~130mn
▪ Typically managed by the railway
maintenance service provider or
railway operator itself, with goods
supplied directly from OEM
▪ Integrated supply chain management
services agreement are increasingly
prevalent globally, with partnerships
between client and specialist service
provider, eg. UPS or DHL
Size of opportunity Other considerations
SOURCE: Expert interview, McKinsey
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
Rolling stock cleaning service 156: TRANSPORT OPERATIONS – ROLLING STOCK AND SPARE PARTS MANAGEMENT
▪ High ease of capturing as several
Qatari companies are already
providing this service, such as
– Qatar Cleaning Company (QCC)
– Al Mutawassit
▪ Meeting Qatar Rail requirements
would not require significant
investment
▪ Low risk
▪ Low:
– Not knowledge intensive
– Limited opportunities to use
Qatar Rail as a nucleus for
growth beyond Qatar
– Low margin sector
▪ Providing daily cleaning service for rolling
stock fleet, including
– Interior cleaning/ sweeping
– Plumbing and sanitation services
– Body wash
▪ Potentially can be outsourced to the
company which currently provides janitorial
services to other public buildings ▪ Total revenue potential from initial
sales to Qatar Rail: USD 26-27mn
– 2012-2020: 1.7-1.8mn
– 2021-2032: 24-25mn
▪ Additional revenue from other
companies not taken into account
▪ Typically provided by janitorial
service provider companies which are
not specialised in the railway sector,
such as public locations, airports,
offices, etc.
SOURCE: McKinsey
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Strategic value
Other considerations
Training academy for railway professionals
SOURCE: McKinsey
158: TRANSPORT OPERATIONS – PERSONNEL
▪ Qatar’s track record in education
would allow it to develop state-of-the-
art training facilities
▪ Potential synergies with Qatar-based
universities, including Texas A&M
and Carnegie Mellon, for sharing
classroom facilities, dorms, R&D labs
and libraries
▪ Challenge will be ensuring
international credibility – hence
importance of JV with OEM or global
training provider, eg. L3 MPRI
▪ High:
– Creates knowledge-based jobs
– Aligned with Qatar’s focus on
education
– Opportunity to establish Qatar as
regional hub for training specialist
technical professionals
– Opportunity to extend beyond rail
to serve other sectors
▪ Question is whether there will be
sufficient demand to justify creating
such an institution in the region
▪ Management of training academy for rail
professionals, including operators,
maintenance engineers and technicians,
signalling and telecom professionals,
electricians
▪ Academy would primarily serve Qatar Rail
employees, but over time would also have
from other operators
– Growing demand from rail operators in
the region for trained professionals,
new school opened in Egypt, several
hundred employees from KSA,
Bangladesh and Afghanistan sent to
North America each year for training
– Opportunity to partner with globally
recognized railway player, such as
DBI or Bombardier
▪ Academy should also offer certification for
new train operators, drivers, and
technical staff
Business opportunity Ease of capturing
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~ 75-77 mn:
– 2012-2020: 20-22 mn
– 2021-2032: ~55 mn
▪ No revenue potential from sales to
other Qatar companies expected
▪ Total revenue potential from sales
across GCC in 2012-32:
USD ~80-85 mn
▪ Training is typically managed by the
railway companies internally, but with
key courses outsourced to specialist
providers such as Hydrex Training
(UK) or Rail Skills Training Centre
(AU)
▪ Examples of dedicated training
institutes include Norwegian Railway
Academy and CENACAF
▪ Training academy could also include a
regional centre for innovation, in
partnership with international
innovation players such as Siemens
Size of opportunity
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
Provision of staffing solutions 159: TRANSPORT OPERATIONS – PERSONNEL
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~110mn-
120mn:
– 2012-2020: 2.5mn – 3mn
– 2021-2032: 60mn – 65mn
▪ Additional revenue from other
companies not taken into account
▪ For all non-technical staff, including
customer services, ticketing officers and
passenger announcements
▪ Provision of end-to-end staffing services,
including
– Recruitment
– Staff deployment
– Training academy management
▪ Value proposition is for local Qatari
company to manage roster of customer
service employees that can be deployed
across portfolio of clients, eg. Hotels,
malls, etc.
– Opportunity to drive Qatar as a
regional hub for customer service
excellence
▪ Rail operators typically only
outsource short-term/specialist
requirements, eg. Teams of
specialist engineers for track
maintenance works
▪ Opportunity to extend services to
other customer-service companies in
the region, including:
– Public transport
– Airlines
– Hospitality
▪ Low:
– Not knowledge intensive
– Some potential to become
regional innovator in staff
training and deployment
capabilities
▪ Relatively easy to capture:
– Replicating Qatar Airways model
for recruiting, training and
deploying flight attendants
▪ Qatar’s track record in education
would allow it to develop state-of-the-
art training facilities
– Opportunity to explore synergies
with Training Academy
▪ Potential commercial risk in being
able to source clients outside of Qatar
Rail
▪ Little/no competition risk
▪ Low risk for Qatar Rail
SOURCE: McKinsey
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Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Rail infotainment 160: TRANSPORT OPERATIONS – MARKETING AND SALES
▪ Qatar does not have the
technological capabilities to develop
the solution, but does have significant
capabilities in content generation
– Content generation could be
driven in partnership with local
partners, including Al Jazeera, to
provide customers with local
relevant themes and topics
▪ Low risk to Qatar Rail project
▪ Relatively low competition as this is
new industry and no ARAB/GCC
companies in this SPA
▪ Medium strategic value
– Opportunity develop innovative
content and business model that
meets local requirements
– Creates few jobs (~10-50 FTEs)
– Opportunity to be first mover in
this space in Middle East
▪ Development of interactive onboard
entertainment media solutions, including
– Content generation
– Technology platforms and interface
– Maintenance
▪ Revenues generated by usage and/or
advertising sales
▪ Technology platform to be procured from
proven railway infotainment supplier, such
as Funtoro, Televic, Harman, content to be
procured from regional content producers,
such as Al Jazeera, MBC
▪ Key success factor is getting the content
right to attract local and expatriates, and
attracting right advertisers
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~9 - 10mn,
all incurred in 2021-2032
▪ Additional revenue exports to GCC
region not taken into account
▪ Possible that Qatar Rail does this
internally or that it is outsourced to
QMedia
Size of opportunity Other considerations
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Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Rail newspaper 161: TRANSPORT OPERATIONS – MARKETING AND SALES
▪ Requires minimal initial investment
and management
– Qatar already has printing press
capacity
– Opportunity for local broadsheet
newspaper, such as The
Peninsula, Qatar Tribune or Gulf
Times
▪ Only area requiring ramp-up is
advertising sales capabilities
▪ Low risk to Qatar Rail project
▪ Low likelihood of competition
▪ Opportunity to export model to other
regional customers
▪ Does not diversify the economy or
create many knowledge based jobs
▪ Development of a newspaper specifically
tailored for passengers – designed to be
read in 20 minutes, broad appeal
▪ Newspaper is free, with revenues
exclusively generated by advertising sales
▪ Content is purchased from other media
outlets, and re-formatted/shortened to
ensure broad readership
▪ Business model has been successfully
launched across many cities, including
Dubai
▪ Can also be distributed outside Qatar Rail
– Malls
– Commercial buildings
– Offices
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~15-24mn:
– 2012-2020: 3mn – 3.5mn
– 2021-2032: 15mn – 20mn
▪ Additional revenue exports to GCC
region not taken into account
▪ Difficult model to get right
– No secure customer need to
build advertising relationship
from scratch
– Several free newspapers have
struggled financially
▪ Need to determine appropriate
language/format for Qatar
Size of opportunity Other considerations
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
Call center services 162: TRANSPORT OPERATIONS – MARKETING AND SALES
▪ To be cost competitive while
maintaining Arabic language
capability, call centre should be
located in Oman / Egypt / Jordan
▪ Call centre outsourcing requires
strong SLAs and reliable partners to
be successful
▪ Risk would be relatively low
▪ Medium:
– Low margin sector
– Not knowledge intensive
▪ Potential to make Qatar the a
regional hub for customer service
excellence
– Opportunity to explore synergies
with Qatar Airways
▪ Management of inbound call centre for
passenger rail and metro customers to
handle
– Passenger questions and complaints
– Billing questions and top-ups
▪ Opportunity to manage an outsourced call
centre which serves both Qatar Rail and
other companies in the region, including:
– Public transport authority
– Airlines
– Hospitality
▪ Value proposition: meet local language
/cultural requirements while ensuring low
cost efficiency
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~10mn
– 2012-2020: 1.5mn – 2mn
– 2021-2032: 8.5mn-10mn
▪ Additional revenue from other
companies not taken into account
▪ When outsourced, call centres are
typically run from low-cost
destinations, such as India,
Philippines, Egypt and Jordan
▪ Qatar Airways has relocated part of
its Arabic call centre to Muscat,
Oman
SOURCE: McKinsey
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Website services 163: TRANSPORT OPERATIONS – MARKETING AND SALES
SOURCE: McKinsey
▪ Qatar has limited track record in IT
software development
▪ Not critical for overall timeline – need
not be fully functioning before 2020
▪ Potential partnership with global
player and/or Qatar Airways IT
function to ensure overall technical
robustness
▪ No risk to Qatar Rail project but
commercial risk as this is competitive
sector
▪ Medium
– Could serve as basis for small
start-up to develop expertise to
serve other customers in future
– Creates knowledge-based job
– Aligned with Qatar’s aspiration to
become the region’s ICT hub
– Provides ongoing profitable
revenue stream through website
maintenance
▪ But creates few jobs (~10-50 FTEs)
▪ Design and management of online portal
which includes
– Train schedules
– Ticket purchases and top-ups
– Information of onboard services
▪ Does not include design and management
of back-end ticketing systems
▪ Qatar Rail to serve as platform for
company to design website with concept
adapted to Qatar
▪ Revenues from development of web
platform, and maintenance including
updates, upgrades, debugging, etc.
Business opportunity Ease of capturing Strategic value
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~4.5 - 5mn:
– 2012-2020: ~1mn
– 2021-2032: ~ 3.5 – 4mn
▪ Total revenue potential from sales to
other Qatar companies: USD ~145 –
150mn
▪ Total revenue potential from sales
across GCC: USD ~30 – 32mn
▪ Typically rail operators manage
website internally, but outsource set-
up of interfaces between website and
ticketing systems with large
POS/eCommerce technology
companies, such as Siebel, IBM
▪ Increasingly boutique portal design
companies are handling these
requirements, such as CSI Media
Size of opportunity Other considerations
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Advertising management services 164: TRANSPORT OPERATIONS – MARKETING AND SALES
▪ Requires minimal CAPEX investment
▪ QMedia has capabilities in this space
already
– Expertise for advertising space
planning would need to be
brought in from established
agencies in developed cities
▪ Day-to-day management of
advertising sales can be run by Doha-
based company
– But to be profitable company
would need to quickly establish
itself beyond Qatar Rail and Qatar
▪ No risk for rail operations and little
start-up investment required
▪ Medium:
– Potential for Qatar to develop first
wholly dedicated, domestic
advertising sales agency focused
on public areas
– Opportunity for company to
develop innovative advertising
themes tailored to GCC culture
and demands ▪ Management of all in-station and on-board
advertising, including:
– Identification and fit-out of advertising
platforms, eg. billboards, screens, etc.
– Key account management / outbound
sales
– Pricing
▪ Opportunity to collaborate with Qatar Rail
on station design to optimize
advertisement point placement and
visibility
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~260mn-
275mn:
– 2012-2020: 10mn – 15mn
– 2021-2032: 250mn-260mn
▪ Additional revenue from other
companies not taken into account
▪ Outside the Middle East advertising
sales are increasingly – but rarely
completely – outsourced to third party
agents, including PharPartnerships
(serving London Underground),
PubliGroupe, Lamar, Search Media,
Air Media
▪ No large, dedicated advertising sales
agency in Middle East – only
company with capability is ITP (UAE),
which only sells in media space
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
PR and external communication services 165: TRANSPORT OPERATIONS – MARKETING AND SALES
▪ High
– Several Qatari communications
companies already exist,
including QMedia, GrowQatar,
Oryx Advertising Company,
AdaBisc
– Commercial risk is low as little
up-front investment required
– Competition is high as several
regional and international present
▪ Medium
– Creates knowledge-based jobs
– Reinforces Qatar’s positioning as
a regional marketing and
communications hub
▪ But creates few jobs (~10-50 FTEs)
and is relatively low value
▪ Provide external communications
management services to Qatar Rail,
including:
– Above the line campaigns (billboards,
TV ads, etc.)
– Below the line campaigns (direct
marketing, point-of-sale material
design, etc.)
– Corporate communications (press
releases, events, etc.)
▪ Value proposition to provide advertising
services sensitive to local culture
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~5.5mn-
6mn:
– 2012-2020: 2.4mn – 2.5mn
– 2021-2032: 3mn-3.5mn
▪ Additional revenue from other
companies not taken into account
▪ Unclear if Qatar Rail will outsource
any communications
requirements/campaigns as it already
has a Public Relations Department
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Size of opportunity Other considerations
Construction of energy efficient cooled walkways 167: TRANSPORT OPERATIONS – CUSTOMER SERVICES
▪ Qatar has no significant experience in
developing cool walkways
– But several construction
contractors have developed
conventional cooled walkways in
Doha, eg. Doha Airport
▪ Long time for ramp-up possible
because Qatar Rail can phase in
these cooled walkways in later stages
of station infrastructure development
▪ No risk to Qatar Rail but high initial
investment required
▪ Opportunity for Qatar Rail to trigger
development of innovative, energy-
efficient cooling technologies
▪ Size of Qatar Rail probably sufficient
to create business case for start-up
▪ Opportunity to use product
extensions for application in other
construction and infrastructure
projects
▪ Qatar has significant need for such a
solution for the Olympics
and World Cup
▪ Build cooled walkways linking stations to
nearby buildings
▪ Qatari company to build new partnerships
across variety of suppliers to integrate
proven energy efficient technologies and
products, such as:
– Shaded glass
– Insulation
– Renewable energy sources (e.g., solar
panels or PV cells in glass)
– Low energy use ventilators
▪ Opportunity for Qatar to
– Lock in global suppliers for projects
across region
– Drive integration of an energy efficient
solution specifically adapted to the
GCC climate
Business opportunity Ease of capturing Strategic value
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~135-160 mn
– 2012-2020: 55– 60 mn
– 2021-2032: 80–100 mn
▪ Total revenue potential from sales to
other Qatar companies: USD ~40 mn
▪ Total revenue potential from sales
across GCC: USD ~135 mn
▪ Dubai and Kuala Lumpur have
several ongoing cooled walkway
construction projects
▪ Although there is still significant
opportunity to develop more energy
efficient designs and materials
▪ Will require additional research and
development beyond initial
installation
SOURCE: McKinsey
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Car-sharing services (Car 2 Share) 168: TRANSPORT OPERATIONS – CUSTOMER SERVICES
SOURCE: McKinsey
▪ Qatari entrepreneur is well placed to
capture opportunity but should focus on
successful partnership with municipality
and OEM and build capabilities in
operations
– Qatar traffic is growing rapidly
increasing the need for innovative
mobility solutions
– Car sharing could become integral
part of the transportation master plan
of MMUP (Central Planning Office)
– OEMs are likely to engage in
partnerships
▪ High strategic value for Qatar
– Congestion management is on top
op Qatar’s agenda (CPO) since
Greater Doha will grow rapidly and
see tremendous increase of visitors
due to WC 2022
– Sustainable and environmentally
friendly business concept, good for
Qatar’s image
Business opportunity for Qatari entrepreneur
to provide short term rental cars in the greater
Doha area
▪ Rent out small (electric) vehicles for short
distance trips in greater Doha area without
reservation on a per minute basis
▪ Targeted customers in Qatar are mid-income
Qatari residents and tourists
▪ Value proposition to customers is the
convenience (all-in-one payment, ease of
parking, flexibility of pickup), eco-friendliness
and the financial attractiveness of the solution
▪ Business model is to generate income from
usage fees, registration fee (to cover costs),
advertisement income and value-adding
services (e.g. renting out navigation system)
Business opportunity Ease of capturing Strategic value
▪ Initial revenue in 2020 is ~USD 2.4 mn
projected to grow to ~USD 21 mn by
2026 and afterwards with ~5% per
annum
▪ EBIT in “steady state” is ~USD 7 mn
growing with expansion of fleet,
representing a EBIT margin of ~25%
▪ Initial up-front investment is ~USD 4.1 mn
of which ~USD 1.2 mn needed for setup
organization, office space and
development of IT solutions and ~USD
2.9 mn for purchase of initial fleet
▪ Currently there is no competition in the
GCC, main players internationally are
Car2Go (Daimler, Europe), ZipCar
(US/UK, merged with Streetcar),
DriveNow (Sixt/BMW, Europe), Connect
(Hertz, Europe/US), Autolib (Paris)
▪ Barriers for entering the market are
mainly the upfront investment, local
knowledge and network, brand image
and capabilities, therefore giving first
mover big advantage
Size of opportunity Other considerations
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Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Personal car transport services 169: TRANSPORT OPERATIONS – CUSTOMER SERVICES
▪ Medium:
– Requires specially adapted
freight wagons to be
made/imported
– But day-to-day management is
easy
▪ Low risk to Qatar Rail project
▪ Medium to high commercial risk as
each wagon costs USD ~200k
▪ Strong competition expected from
local car rental companies
▪ Provision of personal car transportation
service for long distance rail passengers
(international connections)
▪ Value proposition is allowing passengers
travelling for long stays in different cities to
have their own car at destination
– Target segment: families on vacation
▪ Pricing should be:
– Competitive with local car rental
companies
– Coordinated with Qatar Rail to
maximize passenger flow (ie.
discounted ticket price for passengers
travelling with own car)
▪ Can also be used by local car distributors
to re-distribute stock due to country
specific requirements
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~235 -
240mn, all incurred in 2021-2032
▪ Additional revenue exports to GCC
region not taken into account
Size of opportunity Other considerations
▪ Will not be relevant until rail links with
international cities are established
▪ Low:
– Not knowledge intensive
– But creates few jobs (~10-50
FTEs) and is relatively low value
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Passenger security services 170: TRANSPORT OPERATIONS – CUSTOMER SERVICES
▪ High – Qatari companies are already
providing this service, such as
– Qatar Security Services
– Al Bateel Securicor
– Bin Arbaid Group
▪ Meeting Qatar Rail requirements
would not require significant
investment
▪ Low commercial risk because of
contract with Qatar Rail
▪ Medium to high competition
▪ Low:
– Not knowledge intensive
– Limited opportunities to use
Qatar Rail as a nucleus for
growth beyond Qatar
▪ Provision of passenger security from theft,
vandalism and violence, includes
– Patrols
– CCTV monitoring
– Management of advanced recognition
software (which recognizes aggressive
behavior)
▪ Opportunity to provide integrated,
independent security services which
serves both Qatar Rail and other entities in
the region, including public buildings,
offices and residential areas
▪ Collaboration with Qatar Police Force
required
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~36-42mn:
– 2012-2020: 6mn – 7mn
– 2021-2032: 30mn-35mn
▪ Additional revenue from other
companies not taken into account
▪ Security is typically provided by local
law enforcement agencies, but
different models existing, including
– Transport/rail-specific police
service
– Private companies
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Bus feeder services (outside Doha) 171: TRANSPORT OPERATIONS – CUSTOMER SERVICES
▪ Easy to provide this service as there
are several private car and rental
companies already in Qatar with
large fleets of buses
– Competition is relatively high
▪ Commercial risk is low because
buses can be leased, reducing initial
capex investment required
▪ But optimal service requires early
coordination with Qatar Rail on:
– Station design (for bus stop to be
incorporated in the layout), as
well as scheduling and routing
▪ Low:
– Not knowledge intensive
– Little opportunity to grow beyond
Qatar
▪ Provide bus services linking stations to
outlying areas and cities
– National/regional coach system - not
inner city bus system
– Does not compete with Mowasalat
▪ Value proposition is providing affordable
and convenient “last mile” service to rail
customers ▪ Total revenue potential from initial
sales to Qatar Rail: USD ~410mn-
420mn, all incurred in 2021-2032
▪ Additional revenue from other
companies not taken into account
▪ Unclear whether Mowasalat will
provide service, and thereby prevent
business opportunity
▪ Need to assess real demand for such
a service
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Onboard food & beverage services 172: TRANSPORT OPERATIONS – CUSTOMER SERVICES
▪ Medium
– Several Qatari catering
companies exist, Dallah
International Catering & Trading,
Friendly Food Qatar, Prestige
Restaurant and Qatar Airways
Catering
▪ Requires some ramp-up by local
player to serve trains – including
adapting supply chain and procuring
train-adapted onboard food storage
equipment
▪ Low risk to Qatar Rail project
▪ Provision of on-board food and beverage
to passengers on long distance passenger
rail train including trolley service and on-
board restaurant
▪ Value proposition is the freshness of food
prepared locally, and customer service
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~11 - 12mn,
all incurred in 2021-2032
▪ Additional revenue from other
companies not taken into account
▪ No ramp-up required for at least
another 5 years
▪ Low:
– Not knowledge intensive
– Little opportunity to grow beyond
Qatar
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Luggage management and logistics services 173: TRANSPORT OPERATIONS – CUSTOMER SERVICES
▪ High:
– Already successfully provided by
Qatar Aviation Service/Doha
International Airport ground
service
▪ Low:
– Not knowledge intensive
– No opportunity to grow beyond
Qatar Rail
▪ Opportunity to provide distinctive
service to Qatar Rail customers
▪ Provision of baggage management service
for long distance rail passengers,
including:
– Home pick-up/drop-off service
– In station porter service
– Baggage wagon
– Station baggage carousel
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~10 - 11mn,
all incurred in 2021-2032
▪ Additional revenue from other
companies not taken into account
▪ Baggage wagons/carousels are
common in North American railway
stations
▪ Porter services are present in all
major train stations
▪ GCC airports typically provide
luggage services for business class
customers
Long-term possibility to have airline
check-in and baggage drop-off facility
integrated in station
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Limousine services 174: TRANSPORT OPERATIONS – CUSTOMER SERVICES
▪ High
– Several Qatari communications
companies already exist,
including Doha Limousine, Al
Watan Limousine, Fox Transport
▪ High competition from personal
chauffers, limousines and taxi
companies
▪ Low commercial risk ▪ Provision of passenger limousine pick-
up/drop-off service for rail passengers
to/from the station
▪ Value proposition is providing passengers
with additional comfort and luxury
customer experience
– Offering should be coordinated with
Qatar Rail to as an added value for
customers ▪ Total revenue potential from initial
sales to Qatar Rail: USD ~37-38mn,
all incurred in 2021-2032
▪ Additional revenue from other
companies not taken into account
▪ Qatar Rail may become the main
customer of this company in order to
provide its 1st class customers with
the free service, eg.
– Qatar Airways provides this
service to its First and Business
Class passengers on arrival in
most major destinations
▪ Low:
– Not knowledge intensive
– Little opportunity to grow beyond
Qatar
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Rail freight operations 175: TRANSPORT OPERATIONS – FREIGHT SPECIFIC OPERATIONS
▪ Medium to low
– Freight forwarding companies
exist in Qatar
– Global freight operations benefit
from scale to negotiate good
rates and schedules with
transport operators
– Highly competitive sector
– Low risk for rail project
▪ Medium
– Creates (few) knowledge-based
jobs
– Reinforces Qatar’s positioning as
a regional transport hub
▪ Management of end-to-end freight
services, including:
– Freight consignment
– Selection of transport service
– Scheduling / negotiating rates with
transport operators
– Paper administration (including
generating waybills, customs
clearance)
– Potential additional opportunity to
provide freight storage, final assembly
and packaging services
▪ May include the ownership/management of
independent freight wagons/locomotives
▪ Key success drivers will be strong relations
with regional rail operators, cargo airlines,
shipping companies, trucking, and
sea/airports, etc.
▪ Market is dominated by global
players such as Kuehne + Nagel, DB
Schenker, Geodis
▪ European Rail operators tend to have
their own freight forwarding
companies
▪ Independent freight operators not
likely to be set-up before several
years
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~38 - 40mn,
all incurred in 2021-2032
▪ Additional revenue exports to GCC
region not taken into account
OPPORTUNITY
FOR NEW
BUSINESSES
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Size of opportunity Other considerations
Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Freight services 176: TRANSPORT OPERATIONS – FREIGHT SPECIFIC OPERATIONS
▪ Qatari companies already providing
similar services at New Doha Port
and Airport
▪ Qatari company could have
partnership with existing freight
services company to build up
capability
▪ Commercial risk low as no additional
investment required
– With exception of shunting
▪ Last mile service can be provided by
local Qatari trucking companies
▪ Provision of in-terminal freight services,
including:
– On/off loading,
– Shunting services within yards,
– First/last mile truck transport between
terminal and pick-up/drop-off locations
▪ Key success drivers are speed and
efficiency to ensure freight handling time is
minimized ▪ Total revenue potential from initial
sales to Qatar Rail: USD ~30mn-
35mn, all incurred in 2021-2032
▪ Additional revenue from other
companies not taken into account
▪ Shunting and terminal services
typically managed by rail operator
directly
▪ Last mile typically managed by
specialized/trucking companies
▪ Medium
– Reinforces Qatar’s positioning as
a regional transport hub
– Will ultimately drive value
proposition of freight rail vs.
trucking and shipping
OPPORTUNITY
FOR EXISTING
BUSINESSES
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Contents
▪ Prioritized opportunities
– Infrastructure provision
– Infrastructure operations
– Rolling stock provision
– Transport operations
– Other opportunities
▪ Filtered out opportunities
▪ Appendix – Potential additional opportunities
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Professional services (legal, insurances, etc.) 176: OTHER OPPORTUNITIES – BUSINESS SUPPORT
▪ Medium-high feasibility, depending on
the complexity of the required
services
▪ Existing companies include Al Misnad
& Rifaat (legal), Al Sayed Accounting
& Auditing (financial services), Qatar
Consulting Group (strategy consulting
and corporate finance), Albahiya
Qatar (IT support), as well as
numerous international companies
▪ Low strategic value as opportunity
does not create additional high-skilled
jobs (size of Qatar Rail company is
not significant)
▪ Limited potential for innovation
▪ Serving a large client may increase
reputation and may facilitate large
contracts in Qatar and the wider GCC
region in the future
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~630mn:
– 2012 to 2020: USD 270mn
– 2020 to 2032: USD 360mn
▪ Additional revenue from provision of
professional services in Qatar and in
the GCC region between 2012-2032
is not taken into account
▪ Provision of professional services for Qatar
Rail, including
– Legal services
– Financial services
– Strategy consulting services
– IT support services
▪ Opportunity focuses on capturing value
during construction phase, although
capabilities are applicable outside of rail
OPPORTUNITY
FOR EXISTING
BUSINESSES
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply of IT hardware and software
▪ High feasibility as supply of IT
hardware and software already done
in Qatar
▪ Existing suppliers include Family
Computers, AG Group, and Al Attiya
Computer & Technology WLL
▪ Low strategic value as opportunity
does not create additional high-skilled
jobs (size of Qatar Rail company is
not significant)
▪ Limited potential for innovation
▪ Serving a large client may increase
reputation and may facilitate large
contracts in Qatar and the wider GCC
region in the future
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~220mn:
– 2012 to 2020: USD 150mn
– 2020 to 2032: USD 70mn
▪ Additional revenue from provision of
IT hardware and software in Qatar
and in the GCC region between
2012-2032 is not taken into account
▪ Supply of IT hardware and software to
Qatar Rail, including
– Computers and laptops
– Printers, scanners, copiers
– Conferencing and presentation
solutions
– IT software
– Accessories (keyboards, mouse,
speakers, cables etc.)
177: OTHER OPPORTUNITIES - BUSINESS SUPPORT OPPORTUNITY
FOR EXISTING
BUSINESSES
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Supply of office furniture and equipment
▪ High feasibility as supply of office
furniture and equipment already done
in Qatar
▪ Existing suppliers include Abmak
Qatar WLL, Gulf Office Solutions, and
Office Center
▪ Low strategic value as opportunity
does not create additional high-skilled
jobs (size of Qatar Rail company is
not significant)
▪ Limited potential for innovation
▪ Serving a large client may increase
reputation and may facilitate large
contracts in Qatar and the wider GCC
region in the future
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~35mn:
– 2012 to 2020: USD 50mn
– 2020 to 2032: USD 30mn
▪ Additional revenue from supply of
office furniture and equipment in
Qatar and in the GCC region between
2012-2032 is not taken into account
▪ Supply of office furniture and equipment to
Qatar Rail, including
– Computer desks, workstations, and
chairs
– Conference room tables and chairs
– Reception furniture (floor mats, coat
stands, mailboxes etc.)
– Office accessories (lamps, clocks,
artifical plants, fans etc.)
– Stationery, paper, pens etc.
178: OTHER OPPORTUNITIES - BUSINESS SUPPORT OPPORTUNITY
FOR EXISTING
BUSINESSES
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Contents
▪ Prioritized opportunities
▪ Filtered out opportunities
– Breakdown of filtered out opportunities
– Selected examples of filtered out opportunities
▪ Appendix – Potential additional opportunities
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Breakdown of filtered out opportunities
Limited market
accessibility
Limited feasibility
due to technical
capabilities
coupled with size
of opportunity not
justifying
investments
# of opportunities filtered out
5
44
16
78
4
5
4
Opportunity to be captured by Qatar Rail
Opportunity already outsourced
Opportunity captured by utilities
company
Infrastructure provision
Rolling stock provision
Infrastructure operations
BACKUP
SOURCE: McKinsey team
1
2
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Contents
▪ Prioritized opportunities
▪ Filtered out opportunities
– Breakdown of filtered out opportunities
– Selected examples of filtered out opportunities
▪ Appendix – Potential additional opportunities
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Filtered out opportunities due to lack of accessibility for entrepreneurs
Utilities
Idea Description Rationale
▪ Provision of
electrical energy
▪ Provisioning of electrical energy
for stations and railway
operations
▪ Opportunity to use rail
investment to establish new
players but outside scope of
projects
▪ Provision of water ▪ Provisioning of water for
stations and railway operations
▪ Opportunity to use rail
investment to establish new
players but outside scope of
projects
▪ Provision of
cooling
▪ Provisioning of cooling for
stations and railway operations
▪ Opportunity to use rail
investment to establish new
players but outside scope of
projects
1
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Business opportunity Ease of capturing Strategic value
Size of opportunity Other considerations
SOURCE: McKinsey
Manufacture of pre-fabricated staff accommodations 057: INFRASTRUCTURE PROVISION – CONSTRUCTION SUPPORT SERVICES
▪ High feasibility as prefabricated
housing already produced in Qatar
▪ Existing companies include Qatar
Speed House and Prefab Qatar (on
the market since 2002 and 2006
respectively)
▪ Risk from regional (UAE, KSA) and
global (China, USA) competitors
exists, as prefabricated housing
components can easily be shipped
▪ Risk for project is low
▪ Low strategic value as opportunity
does not create high-skilled jobs
▪ Potential for global champion is
limited as low cost producers exist in
e.g. China
▪ Medium potential for innovation, as
sustainability and recycling of
materials is becoming increasingly
important
▪ Total revenue potential from initial
sales to Qatar Rail: USD ~70mn:
– 2012 to 2020: USD 40mn
– 2021 to 2032: USD 30mn
▪ Additional revenues from offering
affordable housing in Qatar and in the
GCC region between 2012-2032 is
not taken into account
▪ QR must ensure that the working and
living conditions of workers are
acceptable (Qatar and the UAE have
previously been criticised in this area)
▪ Could provide an outlet for new
manufacturing capabilities, e.g. within
steel and aluminium
▪ Potential to integrate with supply of
labour force support services
▪ Provision of affordable housing for work
force at construction sites for Qatar rail,
including manufacturing of prefabricated
elements, onsite assembly of house and
installation of electricity and plumbing
facilities, and disassembly and re-use of
materials at other sites/projects
▪ Majority of components can be sourced in
Qatar (prefabricated concrete, steel,
aluminium, glass, and HVAC components)
▪ Main customers are building and
infrastructure developers, and demand in
the region for affordably housing is
expected to grow in the near future due to
growth in new constructions
Filtered out as this
opportunity was integrated
into opportunity # 53
“Labor force support
services”
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116 SOURCE: McKinsey
Design and manufacturing of cost efficient innovative insulation
materials
110: INFRASTRUCTURE PROVISION – EXTERIOR FINISHINGS
▪ Low feasibility
– Targeted technologies to be tested and
with proven effect
– Current Qatari players active in this
field include DicoTech and Qatar
Insulation Factory
– Potential development work to make
insulation material cost efficient to
produce and easy to install
– Researchers at QSTP potentially to
assist on technical development
– Time is critical, e.g. technologies need
to be tested at early stage
▪ High strategic value for Qatar
– Creation of product/technology with
high export potential
– Creation of high value-add jobs
– High innovation potential
– Potentially strong connection to Qatari
upstream polyethylene production
▪ Business opportunity to provide insulation
solution for stations by;
– Manufacturing material
– Designing in-station usage
– Installation of material
▪ Value proposition to reduce energy costs for
property owners by reducing the need for
cooling
▪ Key revenue streams generated through sales
and installation
▪ Expansion potential into other segments, e.g.,
residential and commercial property
development
▪ Several insulation materials available today
most of which are based on Polythurethane,
e.g., Polythurethane rigid panel, Polythurethane
spray foam
▪ Potential competitive advantage from
inexpensive supply of raw materials
Business opportunity Ease of capturing Strategic value
▪ Medium revenue opportunity from sales to
Qatar Rail project
– 2012-2020: USD ~30 mn (TBC)
– 2021-2032: USD ~35 mn (TBC)
▪ Total market in 2011 of USD ~50 mn in
Qatar
▪ Total market in 2011 of USD ~500 mn in
GCC
▪ Market will grow as soon as energy
becomes more expensive
▪ International competitors include,
e.g., BASF (D)
Size of opportunity Other considerations
Filtered out as
opportunity is not
feasible due to tight
timelines of rail
project
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Full service provision of ticketing system 112: INFRASTRUCTURE PROVISION – PASSENGER INFRASTRUCTURE
▪ Medium feasibility in JV setup
– High technical complexity can be
bridged with JV
– High financial impact of down-time
– The currently low skills in this field in
Qatar can be enhanced rapidly
▪ Low feasibility to expand operations in to
system design and engineering
– Lead time for local firm long and
feasibility low due to IPR issues, short
product life-cycles and industry
competition
▪ Ticketing system not critical for rail
operations, type of system still to be
decided upon by Qatar Rail
▪ Medium-high strategic value to Qatar
– Medium value potential creation as
Qatari partner focus on spare parts,
assembly and maintenance services
and JV partner performs the most value
adding activities
– High long-term innovation potential
both in software and hardware
technology e.g., e-ticketing / virtual
ticketing
– Potential to expand service and
maintenance business to other metro
systems
▪ Formation of JV partnership with the OEM
– Manufacturing of spare parts, assembly,
installation and maintenance of ticket vending
machines and ticketing gates for stations in
Qatar to be done in Qatar by the JV
– More advanced components sourced from
specialized suppliers abroad
– Established system manufacturer from
abroad to provide the software
▪ Cost advantage for spare parts from
inexpensive supply of raw material e.g., glass,
steel and aluminium
▪ Revenue from installation, maintenance and
selling of spare parts to QR
▪ Key customers are public transportation and
some airport applications
▪ Cost efficiency and high quality manufacturing
critical to success
Business opportunity Ease of capturing Strategic value
▪ Medium revenue opportunity from sales to
Qatar Rail project
– 2012-2020: USD ~70mn
– 2021-2032: USD ~90mn
▪ Low revenue potential beyond Qatar Rail
and within the GCC
– Qatar 2012-2032: USD 0 (TBC if
potential for bus transportation)
– GCC 2012-2032: USD 30 mn (TBC if
27 new metro/rail projects in GCC will
take off and will need ticketing system,
e.g. Damascus/Jeddah)
▪ Industry dominated by players with global
presence providing turnkey solutions e.g.,
Scheidt & Bachmann (DE), Cubic (US),
Vics (AUS), and Indra (ESP)
▪ Negotiations on IPR clauses in contract
needed if local suppliers of spare parts
and maintenance are to step in
Size of opportunity Other considerations
Filtered out due to
unclear need for
ticketing system by
Qatar Railways
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Business opportunity Ease of capturing Strategic value
SOURCE: McKinsey
Provision of district cooling service using the metro infrastructure 130: INFRASTRUCTURE OPERATIONS – UTILITIES AND ENERGY PROVISION
Size of opportunity Other considerations
▪ Low ease of capturing
– Suppliers of pipe infrastructure needed
are currently available in Middle East
– Potential redesign needed of
infrastructure to incorporate additional
weight, size and other characteristics of
pipes (e.g. wider elevated structures
and tunnels)
– Impact on rail safety and O&M aspects
to be assessed and weighted against
benefits
– Risk for metro operations low if
incorporated into design and build
plans
– Short lead time as cooling pipes would
be put in place as the rail network is
being built
▪ Medium strategic value for Qatar
– In line with Qatar’s desire to lower
carbon footprint
– Value add to Qatar mainly from
sourcing the pipes for the cooling
infrastructure from local suppliers
(e.g. polyethelene and steel)
▪ Total revenue opportunity from sales to
Qatar Rail project
– 2012-2020: USD ~14 mn
– 2021-2032: USD ~74 mn
▪ Total projected cooling market in 2013 of
USD ~95 mn in Qatar
▪ Total projected cooling market in 2013 of
USD ~1,200 mn in GCC
▪ Qatar Cool key player in Qatar
– Privately owned JV between
Tabreed (UAE) 44%, United
development Company (Qatar) 51%,
and other private investors 5%
– Currently supplies cooling to West
Bay and the Pearl
– Operates two cooling facilities with
capacity of ~200,000 refrigeration
tons (e.g. m3 H2O)
– Plans to build a third plant in WB
▪ Opportunity to leverage metro infrastructure
(e.g. tunnels and elevated structures) to provide
district cooling from cooling plant outside Doha
or from current plant to other parts of Doha
▪ Value add by being able to cost effectively
supply new customers in residential, commer-
cial and industrial facilities outside WB/ Pearl
– No/less need for arranging the
infrastructure (permits, digging)
– Reduced need for cooling facilities/plant in
other regions
– Lower costs due to cheaper infrastructure
(e.g. existing versus new), initial
investments include purchase and
installation of insulated pipe system
– Increased revenue due to accessibility of
more customers
▪ Qatarcool (QC) currently provides cooling only
to the Pearl and West Bay
▪ Key revenue streams for QR are concession
fees and/or rent for use of infrastructure, for
local entrepreneur in selling refrigeration tons
(e.g. m3 of cooled H2O)
Filtered out as feasibility is
unclear due to high technical
requirements (technical
feasibility study required)
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Design, installation and maintenance of solar energy generation
solutions
131: INFRASTRUCTURE OPERATIONS – UTILITIES AND ENERGY PROVISION
▪ Medium ease of capturing
– High technical complexity but current
skill set in PV area is medium to high
▫ Company in production of key
input for PV panels, polysilicon,
present (QST)
– Technologies known and proved
– Low risk of impact on metro operation
▪ Medium-high strategic value
– In line with Qatar’s ambition to
decrease dependency on energy from
oil and gas sector and lower carbon
footprint
– Builds on the upstream capabilities in
polysilicon manufacturing
▪ Opportunity to provide solar energy generation
solutions for stations and elevated structures
including design, installation and maintenance
▪ Potentially enormous opportunity in providing
solar energy generation solutions in the desert
▪ Several technologies available of which the
most promising are;
– Standard crystalline
– Thin film (Si)
– Cadmium telluride (CdTe)
– Copper indium gallium selenide (CIGS)
▪ Value added by lowered environmental impact
from using renewable energy sources and by
enabling own energy production
▪ Key revenue streams from equipment sales,
installation and maintenance
▪ Major costs in equipment, to lesser extent in
worker salaries
▪ Key capability to design complete solution
Business opportunity Ease of capturing Strategic value
▪ Total revenue opportunity from sales to
Qatar rail sums up to USD ~75 mn:
– 2012-2020: USD ~56 mn
– 2020-2032: USD ~19 mn
▪ Total market in 2011 of USD 28 mn in
Qatar (excl. QR)
▪ Total market in 2011 of USD 559 mn in
GCC (excl. QR)
▪ …
Size of opportunity Other considerations
Filtered out due long
payback period (high
upfront CAPEX) and
limited relevance of rail
project as nucleaus
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Contents
▪ Prioritized opportunities
▪ Filtered out opportunities
▪ Appendix – Potential additional opportunities
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Potential additional opportunities with relevance for QF or QSTP
Infrastruc-
ture
provision
Idea Description Rationale
▪ Manufacture of
innovative/energy efficient light
sources, e.g. LED lighting
▪ Established players already
exist and unlikely that rail will
serve as a big enough nucleus
for investment; no competitive
advantage
▪ Tunnel thermo
insulation
▪ Innovative solutions to reject
heat getting into tunnels in
order to keep them cool
▪ No feasibility and rail does not
provide large enough nucleus
for investment in R&D
▪ Energy efficient
cooling
▪ Manufacture of
innovative/energy efficient
cooling solutions
▪ High cost of entry, very
competitive, insufficient scale to
break even
▪ Thermo insulation
materials
▪ Development of insulation
materials adapted to GCC
climate and needs
▪ Rail does not provide large
enough nucleus for investment
in R&D
▪ Advanced glass ▪ Testing and development of
applications of advanced glass
solutions, e.g. PV-film coating,
better insulation properties.
Probably in co-operation with
glass manufacturer
▪ Rail does not provide large
enough nucleus for investment
in R&D,
▪ Carbon fiber
rebars
▪ Manufacturing carbon fiber
rebars
▪ Energy efficient
lighting
▪ High cost of entry, very
competitive, insufficient scale to
break even
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Potential additional opportunities with R&D relevance (1/3)
Rail-related
innovation
▪ R&D and manufacturing of
state-of-the-art hybrid engines
for locomotives to reduce
energy consumption during
transport
▪ Manufacture of
hybrid engines for
locomotives
▪ No feasibility and rail does not
provide large enough nucleus
for investment in R&D
▪ Manufacture of
innovative braking
elements
▪ R&D and manufacturing of
state-of-the-art braking
elements to capture and reuse
energy during braking in order
to reduce energy consumption
▪ No feasibility and rail does not
provide large enough nucleus
for investment in R&D
▪ R&D and manufacturing of
state-of-the-art lithium battery
engines for locomotives to
reduce energy consumption
during transport
▪ Manufacture of
lithium battery
engines for
locomotives
▪ No feasibility and long-haul rail
does not provide large enough
nucleus for investment in R&D
Description Idea Rationale
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Potential additional opportunities with R&D relevance (2/3)
Rail-related
innovation
Idea
▪ Rolling stock
energy
optimization
▪ Development of technologies to
enhance produce/manage
energy required by rolling stock
(eg. rooftop solar panels)
▪ OEMs leading innovation in this
area, and incorporating directly
into rolling stock
▪ Plastic fastening
screws
▪ Manufacturing plastic rail
fastenings (screws, pad,
tension washer, rail clamp,
tensioning bolt, baseplate)
▪ Technology still being tested in
NA/Europe, insufficient scale to
break even
▪ Plastic sleepers ▪ Manufacture and supply of
plastic sleepers
▪ Technology still being tested in
NA/Europe, insufficient scale
▪ Advanced paint ▪ Manufacturing of advanced
paints that e.g. help with
insulation, fire prevention, and
structure inspections
▪ No competitive advantage (raw
materials imported) and rail
does not provide big enough
nucleus
Basic
materials
▪ Manufacture and supply of
carbon fiber interior/exterior
lining for rolling stock
▪ High cost of entry, very
competitive, insufficient scale to
break even
▪ CRM / Data
mining
optimization
▪ Carbon fiber lining
for rolling stock
▪ Enhanced CRM system and
data mining capabilities,
potentially through a
partnership with an airline
▪ No feasibility, no competitive
advantage – likely to be run by
Qatar Rail internally
Description Rationale
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Potential additional opportunities with R&D relevance (3/3)
▪ Manufacture of steel freight
cars and freight car parts
▪ Freight will only begin
operations in the long-term
future Rolling
stock
provision
▪ Established systems already
exist and unlikely that rail will
serve as a big enough nucleus;
no competitive advantage
▪ Passenger
information
system
▪ Provision of passenger
information system for stations,
including real-time updates of
train schedules and delays
Infrastruc-
ture
provision
▪ Automated
vending stores
▪ Provision of automated vending
stores with wide range of food /
groceries at stations
▪ Unlikely that passenger flow will
be large enough to provide
compelling business case; Low
cost of labour makes service
less attractive
Infrastruc-
ture
operations
▪ Specialized rail
cables
▪ Aluminium freight
cars
▪ Manufacture of LV, MV and HV
cables for rail
▪ Insufficient scale to make this
viable
Basic
materials
▪ Silicon ▪ Manufacture of silicone and
silicone grease
▪ No competitive advantage (raw
materials imported) and rail
does not provide big enough
nucleus
Idea Description Rationale