06 February 2017
Riyadh — The total value of planned railway investments in the Gulf Cooperation Council (GCC) stands at over $240 billion, with $130bn worth of railway projects in pipeline in Saudi Arabia, according to a report produced by Terrapinn Middle East, organizer of Middle East Rail 2017, in collaboration with leading construction projects tracker Ventures ONSITE.
Saudi Arabia is the uncontested GCC leader when it comes to railway expenditure. As of January 2017, the Kingdom had registered the highest rail construction project value of 50 percent, followed by the UAE (18 percent) and Qatar (17 percent).
The railway infrastructure spending market in the Kingdom is expected to grow at a CAGR of 7.88% from 2016 to 2020. The Ministry of Transport would increase private sector contribution to developing and operating railways by 50%.
“The Saudi government has prioritized several projects such as Riyadh Metro to ensure they continue as planned. The recent announcement that the Saudi government will be consolidating the two public transport entities Saudi Railway Organization and Saudi Railway Company, under the Saudi Railway Company name will ensure a unified vision for the Saudi Arabian national networks,” said Jamie Hosie, Event Director of Middle East Rail 2017.
According to the report, the Middle East, North Africa, Central Asia and South Asia hold the largest selection of freight and urban transport projects across the globe, with over $642 billion worth of planned railway investments. The value of total GCC rail projects in pipeline stands at over $240 billion, with $69 billion worth of projects currently under construction.
© The Saudi Gazette 2017