GCC Project Could Drive Imported Rail Market by Up to 1 Million Tons by 2020

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Governments for Gulf Cooperation Council (GCC) countries could invest $100 billion in laying an estimated 6,000 to 8,000 kilometers of new railway track up to 2020. This mega-project will require substantial imports of rails from outside the region, according to GCC rail infrastructure consultants.

The rail investment is designed to facilitate the movement of both cargo and passengers. If all goes as planned, all six countries in the GCC will be linked by rail, with connections to Jordan and Turkey planned for a later stage.

As there are no rail mills in the GCC, the entire requirement will have to be imported, at least in the medium-term. "There have been discussions about establishing rail mills in the GCC, but it's a risky proposition because once you've supplied the rails, what then?" said a consultant in Abu Dhabi, United Arab Emirates.

Another consultant said that the rail network will be the second economic revolution in the GCC after oil. However, he said, the institutions carrying out the rail investments are as young as the projects. "So it may take time," he said.

The 2,750-kilometer, north-to-south line in Saudi Arabia, which is almost complete, has used about 330,000 tons of UIC 60 rail, and the 1,200-kilometer Etihad Rail network in the UAE will use about 144,000 tons of UIC 60 rail.

If the entire GCC rail network is double track, the total rail requirement up to 2020 could be in the range of 700,000 to 1 million tons, depending on the final length. Large western European mills are likely to be the main sources of supply.

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