Abu Dhabi, June 21,2008(WAM)--The massive economic expansion in Abu Dhabi Emirate in particular and the UAE in general has brought about a corresponding pressure on the country's infrastructure, according to a report.

Titled "Traffic congestion and taxi cabs in Abu Dhabi city", the weekly report by the Department of Planning and Economy (DPE) in Abu Dhab said strain on basic infrastructure is all the more exacerbated by heavy reliance on foreign workforce, a critical necessity for completion of various economic projects that are currently sprinkled across the country.

"And if the current economic growth is to be sustained as robustly as possible, then foreign workforce will continue to be required. This means that the downside of relying on foreign workforce will continue to be felt: Population will continue to increase and so will the pressure on the basic infrastructure, particularly on roads and internal transport system", said the report.

Following is the full text of the report.

IntroductionThe massive economic expansion in Abu Dhabi Emirate in particular and the UAE in general has brought about a corresponding pressure on the country's infrastructure.

This strain on basic infrastructure is all the more exacerbated by heavy reliance on foreign workforce, a critical necessity for completion of various economic projects that are currently sprinkled across the country. And if the current economic growth is to be sustained as robustly as possible, then foreign workforce will continue to be required. This means that the downside of relying on foreign workforce will continue to be felt: Population will continue to increase and so will the pressure on the basic infrastructure, particularly on roads and internal transport system.

According to available statistics, demand for foreign workers is higher in real-estate, construction, trade, and services sectors, all of which account for 60 per cent of foreign workforce. Demand for foreign labor is relatively modest in other sectors.

If Abu Dhabi's economic expansion continues at its current pace, then the population of the Abu Dhabi Emirate would increase once every 12 years. Thus, Abu Dhabi's population is projected to increase to 2.5 millions in 2015, and more significantly to 4 millions in 2025 as compared to just 1.7 million at the moment.

With record oil earnings expected to fuel growth in non-oil sectors, demand for foreign labor will increase, and with it, more pressure on roads and more traffic congestions. Windfall profits will also mean that Abu Dhabi and the UAE in general will diversify away from oil. In other words, Abu Dhabi Gross Domestic Product (GDP) will significantly vary. Economic liberalization and diversification will also assume different forms. This outlook makes it imperative for Abu Dhabi to invest more heavily on infrastructure projects such as roads, bridges, internal transport system, air and seaports, in addition to water and electricity services.

Although Abu Dhabi Emirate boasts one of the best infrastructures in the region, there is a need to expand this infrastructure to cope with current and future economic boom.

Waste of time and livesThe problem of traffic congestion in UAE cities is multifaceted and is alarmingly assuming a heavy economic toll. Statistics indicate that the UAE looses about Dhs. 5 billion a year to road congestions. Unofficial estimates indicate that motorists spend an average of 45 minutes in Abu Dhabi to get to their work. In contrast, traffic flow is absolutely smooth on the country's highways, with high speed being the main cause of human fatalities and property loss. It is also estimated that 25 out of every 100 people die in road accidents. This figure is three-fold higher than in some Western countries.

In a recent workshop, the Abu Dhabi Police warned that road fatalities in the UAE were assuming alarming proportions. According to the police, road accidents increased from 830 cases in 2005 to 1056 last year. This means that one person dies every eight hours as a result of road accident.

What is even more alarming is that most of those victims were young UAE nationals in their prime youth. Earlier, insurance companies had refused to increase insurance ceiling for this category, arguing that road fatalities were higher among the youth than among other categories.

The problem of traffic congestion in Abu Dhabi is compounded by the fact that existing roads have outgrown their capacity. Despite the inexorably massive economic expansion in the emirate, internal roads are no longer able to absorb large fleets of new vehicles that are being added year by year. This constitutes a direct threat to economic growth and indeed to the very competitive investment edge of Abu Dhabi. A great deal of time is wasted as a result of traffic congestion, not to mention other corrosive social and health effects, which undoubtedly take their toll on the overall production and performance.

It should be noted that traffic jams in Abu Dhabi are not confined to peak hours in the morning and afternoons, or even during the weekends. Rather, the emerging economic projects will bring along new traffic problems of their own. Therefore, traffic congestions will prevail throughout most of the day in the foreseeable. Another major factor that should be reckoned with is the problem of parking spaces. Parking facility has become a prerequisite for many tenants. And landlords are wasting no time in exploiting this critical need, especially among people who work until late hours of the night. The dire need for access to parking has prompted many landlords to provide parking facilities at extra charges, thus adding more burden to the already rent-ridden tenants.

Public TransportApart from the burgeoning numbers of vehicles, the problem of traffic jams is compounded by lack of an efficient public transport system. This is an issue that the concerned authorities need to review.

The need for an effective public transport system is asserting itself strongly in Abu Dhabi's agenda as one of the most effective ways of addressing future traffic challenges. Indeed, other cities in the Gulf regions are considering plans in this regard. Public transport infrastructure is particularly critical in view of some staggering estimates which indicate that the number of vehicles in Abu Dhabi will increase to about one million by 2015. This is obviously a recipe for myriad of traffic problems in the emirate.

In an attempt to forestall road congestion and its ramifications, Abu Dhabi 2030 Vision has embarked on a thorough research to address and redress this issue. Central to this study is the need to overhaul the public transport system and make it more attractive to commuters and the general public. With the introduction of the latest brands of technologies, public transport can be of great benefits to everybody in socio-economic and environmental terms.

Taxi cabs According to the Licensing Department of the Abu Dhabi Police, the number of vehicles on the roads in Abu Dhabi reached 559,000 in April this year. New registration and vehicle registration renewals reached 443,000 vehicles of which light vehicles account for 80%. Average daily registration rate in Abu Dhabi reached 600 vehicles last year, a 12%. This rate is twice as high compared to the population growth rate in the emirate.

All the indications are that the number of vehicles in Abu Dhabi is set to increase considerably within the next few years. There are many factors which will help this trend: population will continue to increase; income is expected to improve; economic prosperity will boom further; access to driving licenses will remain open for all; and more cars from other emirates will be seen in the capital. This is in addition to the ease with which car loans are secured from the banks, which have opened office in auto showrooms to provide funding to new and old car owners.

The increased car ownership has created a new problem, which has to do with taxis and rented cars that are used frequently by tourists. There have been regular complaints by commuters that people had to wait longer to get a taxi, especially during peak hours.

At the moment, there are two types of taxi cabbies in Abu Dhabi, namely old taxi cabs that are owned by UAE nationals and new cabs that are owned by the newly set up companies, which came into being in accordance with Law No. 19 of 2006. This law also promulgated the establishment of a Taxi Organization Centre. The centre was tasked with regulating taxi operations in the capital in terms setting fare limits as well as operational standards and regulations.

Although the number of taxicabs has increased slightly from 8039 in 1995 to 8741 during the first quarter of 2008, and in spite of increased activity in internal transport, getting a taxi in some areas of Abu Dhabi is a daily hassle to many people, especially during peak hours. Taxi drivers are noticed to flatly refuse taking passengers to some areas of Abu Dhabi, ostensibly to avoid traffic congestion.

Reasons for shortages in taxi cars One obvious reason for taxicab shortage in Abu Dhabi is that population growth is not matched by a similar growth in the number of taxi cars. As indicated in Table 2, the number of taxicabs before and after the establishment of the Taxi Organization Centre has increased by 1452 as compared to 750 cars which have been withdrawn from the market and cancelled. This brings the total number of cars from 8039 in 1995 to 8741 after the establishment of the centre, a growth of just 8.7%. It is clear that the steady rise in population is not matched by a similar rise in the number of taxi cars. As shown in table 3, Abu Dhabi population has increased steadily by 69.9% during the same period, an eight-fold increase compared to taxicab growth.

Table (4) shows that the number of newly registered taxi companies in Abu Dhabi reached 1452 vehicles last month. The actual number of cars on the roads is 1238. This shows that 85.2 % of the roads' capacity has been used up.

Reasons for shortages: A view from taxi driversAccording to taxi drivers, there are many reasons why they would prefer to operate in outlying areas rather than in near but congested areas. These reasons are:A-Disparity in the metering system-metering begins with just Dhs. 2 in old taxicabs, regardless of whether it is morning or evening times. In contrast, this metering begins with Dhs.2.6 in the morning and Dhs.3 at night in normal new cabs. Special cabs charge Dhs.3.12 during the day and Dhs.3.6 during the night.

-For old cabs, metering system is calculated by actual meters done while on the move, whereas it is calculated by meters done as well as by time when the cab is stopped. This disparity has prompted old taxi drivers to avoid taking passengers to short distances and crowded roads where they will waste much time in return of little reward.

B-Petrol pricesIn view of soaring petrol prices, many cab drivers are feeling the pinch. Operational cost has gone up even when the metering system has remained the same. This is one of the reasons why many drivers prefer to work in outlying parts of Abu Dhabi. It is well known that petrol consumption tend to be less when the car is on highways but increases when inside the city.

C-High accommodation rentsDue to expensive rents, many cab drivers have chosen to live in places such as Shahama, Baiyas and Al Rahba. They tend to go to Abu Dhabi only if they find passengers. This causes cabs shortages during morning hours.

Many old cab owners are paid by the drivers on monthly basis. This system of partnership forces drivers to work for longer hours during the day. But they stop for a siesta, a usually during the sweltering daytime period which is hazardous to both the car and the driver. This is the same period when workers come out from offices. Getting a cab during this period becomes a real hassle.

Reasons for the shortage: A view from passengersFrom a passenger perspective, cab shortage and driver refusal to move within the city is due to the following reasons:a-Work timings between public and private sector employees are too close. Workers go to work and return almost around the same time. This close timing causes considerable pressure on taxicabs.

b-B-Traffic congestion is another reason why cab drivers avoid going to crowded areas where they will be stuck for longer times without substantial financial reward.

c-Lack of proper public transport system is a major problem. This is worsened by the fact there is no reliable internal transport system, leaving passengers with no option but to rely on cabs.

Passenger complaints about taxi servicesAccording to a survey conducted by the Transport Organization Centre aimed at gauging customer satisfaction with taxi services,% 47.8 of the complaints were directed against taxi cab drivers. These complaints mainly revolved around what the respondents viewed as unacceptable behavior by cab drivers.% 71.4 of these complaints were about the behaviors of old taxicabs' drivers. They were said to be rude or careless on many instances. Other types of complaints accounted for 37.8 % and were mainly about the driver using the mobile while driving, wrong parking; over speeding, jumping red signal etc.% 53.4 of these complaints were registered against old taxicabs' drivers. There was little complaint about metering and overcharging.

Urgent remedial measures To address current shortages in taxicabs but without prejudice to ongoing government efforts to address the problem - it is imperative to urgently consider the following remedial measures:-Old taxicabs should be withdrawn from the market gradually and at a much slower pace. In tandem with this move, it should be mandatory for new taxi companies to inject more cabs into the market so as to ease the problem.

-The metering system in old and new taxi cars should be unified and current disparity should be redressed. This new incentive will encourage old taxi cabs to enter crowded areas inside the city.

-Phone-in taxi service should be introduced. This will save time for passengers, especially in areas where there are no taxi services.

-Private companies should be allowed to offer pubic transport services in specified routes and times. This will ease pressure on taxi cabs and could be done without prejudice to ongoing plans by concerned authorities in this regard.

-Public transport system should undergo a complete overhaul and people from different walks of life should be encouraged to use it. The revamped public transport system should be able to offer timely services, safety and more importantly, it should be able to considerably reduce traffic congestion as well as private ownership of light vehicles. Moreover, it should hopefully contribute to reduction of air pollution and traffic fatalities.

-Working timings should be amended in such a way as to avoid taxi shortages. Private and public sector employees as well as students should be able to start and finish work at different timings.

Long and medium term remedial measuresThe problem of traffic congestion calls for a rethink of current approaches in favor of more robust, integrated, and creative solutions which should be based on medium and long-term plans. The good news is that some of these solutions are already being mulled by concerned authorities. These solutions revolved around the followings:-Comprehensive study of traffic-related problems, including the public transport system and road capacity.

-Re-distribution of government functions. Some of the vital institutions should relocate outside the city to ease pressure in the heart of the city and thus reduce traffic congestion-E-traffic system should be speedily instituted and its operational environmental should be improved.

-Metro and railway systems should be established to link internal and outlying areas.

Copyright Emirates News Agency (WAM) 2008.