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Kingdom implements mega projects worth SAR288bn

jochemgeheniau — Tue, 08 Oct 2013 13:39:47 +0000

Saudi Arabia is implementing mega infrastructure projects, including roads, bridges and rail projects worth $77 billion (SR288.75 billion), local media said quoting a report.
The projects currently implemented to develop roads and bridges in the GCC countries are estimated at $109 billion (SR408.75 billion), the report released by Ventures Middle East said.
Saudi Arabia captured the five biggest construction projects (contracts) in the Middle East region during August 2013.
The Saudi Electricity Company (SEC) recently awarded a $3.3 billion contract to South Korea’s Hyundai Heavy Industries to build Shaqiq power plant at the capacity of 2,640 megawatt (MW), located 580 km south of Jeddah, the report added.
Last month, the Ministry of Housing approved eight contracts worth $1 billion (SR375 billion) for the construction of housing projects in a number of cities, including Madinah, Jeddah, Dammam, Qatif, and Kharj, the report said.
Likewise, the Higher Commission for Riyadh Development (HCRD) also signed contracts valued at more than $22 billion for a Riyadh metro project, which is the biggest in the region. Contractors plan to build a 176 km long metro line in a five-year period, it said.
Plans are under way to build new petrochemical projects with their values touching $70 billion. Saudi Arabian Oil Company (Saudi Aramco), Saudi Basic Industries Corporation (SABIC) and Farabi Petrochemical Company (Farabi) will lead investments in these projects, the report said quoting petrochemical sources.
The petrochemical projects will be constructed near the oil refineries to get their required feedstock. They will be located in Jazan, Yanbu and Ras Tanura, the report said.
The Kingdom also recently kicked off major industrial and petrochemical projects in Jubail and Yanbu industrial cities with costs reaching SR327 billion.
The projects are supposed to raise the Kingdom’s share to global petrochemical market to more than 12 percent and its petrochemical products to nearly 100 million tons annually, the report said.

Qatar plans to spend USD100bn on roads and railways as part of its mammoth infrastructure uplift

jochemgeheniau — Fri, 04 Oct 2013 07:21:02 +0000

Qatar plans to spend $100bn on roads and railways as part of its mammoth infrastructure uplift, according to Kuwait Financial Centre (Markaz ).

There is no railway network in Qatar currently. High congestion and traffic accidents have now prompted Qatar to build railways, Markaz said in a report. For this purpose, Qatar Railway Development Company was formed with almost $41bn worth rail projects in execution or planning phase. Qatar Integrated Rail Project, comprising Doha Metro as well as passenger and freight rails, is slated to cost $37bn, it said, adding other big projects include West Bay people mover and Lusail light rail transit.

Moreover, no less than half a million people are expected to visit Qatar during the FIFA World Cup in 2022, which, according to Markaz , hastened the need to speed up railways projects. Across the GCC, it said in 2012, about $160bn worth railway projects were either in construction or planning phase. On Qatar’s road infrastructure, it said though the quality of roads is “significantly” better than other emerging markets, there is “concern over the current capacity”.

In 2010, Ashghal, Qatar’s public works authority, said it plans to spend $20bn until 2015. The roads development plans got a fresh catalyst from the country’s successful bid to host the World Cup. As many as 30 highway projects valued at around $27bn are to be awarded, it said, adding among the big projects, which are in construction or planning phase, are Doha Expressway, Dukhan Highway-Eastern section, Lusail Expressway and Orbital Highway.

Highlighting that $4.9bn worth road projects were awarded in the GCC in 2012, it said the region has historically focused its investments in building roadways. Almost 100% of the roads in the GCC are paved roads in the GCC against below 75% in other emerging countries.

GCC traffic infrastructure projects at USD109b

jochemgeheniau — Thu, 26 Sep 2013 08:01:20 +0000

DUBAI – Ongoing roads and bridges developments across the GCC are currently valued at $109 billion according to the most recent figures from business advisory and research firm, Ventures Middle East.
The UAE, second worldwide for roads quality in the latest Travel and Tourism Competitiveness Report, has investments worth $58 billion in the pipeline for roads and bridges alone, while neighbor Saudi Arabia is undertaking infrastructural improvement projects valued at $77 billion that includes roads, bridges and rail.
As the host of the 2022 Football World Cup, Qatar leads the 2013 boom with an allocation of $20 billion for roads and highways, in addition to a $35 billion rail network. The combined share of roads and bridges projects in the UAE, Qatar, and Saudi Arabia meanwhile represents more than 75 percent of the total $109 billion pot.
Oman is securing $14.8 billion on roads, rail and bridges infrastructure in the coming few years, while the Kuwaiti budget for infrastructure works is estimated at $13 billion. Bahrain meanwhile also declared earlier in 2013 that it will spend more than $2.5 billion on major road, bridge, and tunnel networks. The figures signify good news for the hundreds of transport infrastructure service providers participating at the Gulf Traffic exhibition and conference, taking place on Dec. 9 to 11, 2013 at the Dubai International Convention and Exhibition Centre. Supported by Abu Dhabi Police and SAEED, the three-day event will bring together more than 100 exhibitors from 20 countries involved in the design, build, and maintenance of the region’s road, rail, parking and public transport projects.
Richard Pavitt, Exhibition Director for Gulf Traffic, said: “The Gulf region has been at the forefront of transport infrastructure developments for several years now, and 2013 marks another big year, where dozens of new projects have been announced across the six Gulf states.”
“Gulf Traffic will bring together industry leaders from across the globe involved in road, rail, public transport and parking industries. Suppliers will be able to showcase new trends and technologies offering cutting edge insights and industry solutions.”
Now in its tenth edition, Gulf Traffic focuses on the four key transport industry sectors including traffic infrastructure, parking, road safety, and Intelligent Transport Systems (ITS).
Organized by Informa Exhibitions, the region’s foremost transport infrastructure event is also supported by ITS Arab, with the Transport Research Laboratory (TRL) signing on as Knowledge Partner.
The show returns this year with the Gulf Traffic Conference, bringing together senior-level professionals and government officials presenting the latest on road and safety management trends and global implementations of ITS.

Over 1,300-kms of major new road projects under study

jochemgeheniau — Thu, 12 Sep 2013 14:17:04 +0000

Muscat: The Sultanate’s Ministry of Transport and Communications is conducting studies to build major roads as well as dualisation work of existing roads with a total length of over 1,300 kilometres in different parts of the country.
These roads include a 200km-long new road between Al Mazyunah and Sheit, 150-km-Metan-Al Hashman-Al Shasr road, 715-km-long dualisation programme for Nizwa-Thumrait road, upgradation of 40km-long Sohar-Wadi Hibi road, 76km-long Al Buraimy-Safwan-Al Rawdah road, 39km-long-dualisation of Nizwa-Bahla road as well as dualisation of 33km-long-Ibri-Yankul road. Tenders for selecting contractors for building these roads are expected to be floated in the coming months.
Delivering the keynote address at the Oman Land Transport Infrastructure Summit here yesterday, Eng Muhammed Aref Abu Zaki, Road Design Expert at the Ministry of Transport and Communications, said that dualisation of Nizwa-Bahla road is a continuation work from Muscat. He also noted that the dualisation work of Nizwa-Thumrait road will have challenges as it requires a lot of interchanges.
Further, studies for building major road projects with a total length of 424 kms have been completed by the end of June 2013. These include part one and two of 186-km-long Batinah Expressway, part three of Batinah Expressway for 86 kms, dualisation of 87-km-long Bidbid-Sur road and the 65-km-long Diba-Lima Khasab road, said Eng Abu Zaki.
Oman is set to build its first design-build-operate road project -Diba-Lima-Khasab road in Musandam. A study for the 65 kilometre-long road, which will be developed on a 20 year concession with a private operator, has already been completed and a tender for pre-qualification of companies has been floated.
“It is a strategic route, once it is completed. Lima, which is a coastal town, is a tourist attraction,” added Abu Zaki.
He said ten major new roads or dualisation/rehabilitation works are currently under construction, which has a combined length of 647 kilometres. These include 133-km-long Nizwa-Thumrait road (phase four, part 2), 90-km-long Jabreen-Ibri road, and 50-km-long Izz-Adam road.

Metered taxis in KSA may become a reality after all

jochemgeheniau — Fri, 02 Aug 2013 14:20:16 +0000

The end of the road is in sight for fleecing cabbies as the government plans to implement fare meters in taxis to stabilize the rising cost of travel. The new regulation will make it mandatory for cabbies to install the meters and charge passengers as per the readings is to be discussed and implemented after Eid. Abdullah Al-Qahtani, deputy chairman of the Public Fares Committee of theJeddah Chamber of Commerce and Industry ( JCCI ), said a series of meetings would be held between the JCCI and the Ministry of Transport after Eid to determine how the new regulation can be implemented.
He said the Transport Ministry has come up with new regulations that make it binding for all taxi drivers to use meters as a measure to check rising taxi fares. Only the new officially recognized meter fare would be applicable, which would reduce the number of complaints from the public, he said. The taxi sector, however, is skeptical about the move, claiming that contrary to its stated objective of checking rising fares, it would only lead to a drop in commuters taking taxis since they will be paying SR20 following implementation of the new rule compared to the usual fare of SR10 that they have been paying for decades.
Many taxi drivers said customers, especially expats, who once paid SR10 or SR15 for a certain trip will not accept this decision. Jeddah and other Saudi cities are huge in terms of area, and the introduction of meters will result in some trips costing more than SR30, cabbies say. “I do not know whether this decision will be made mandatory or not,” Abdullah Hafez, an Egyptian taxi driver, told Arab News. “If it is binding, it can result in fewer commuters using taxis. No one will be willing to pay by the meter since it would be exorbitant. Citizens and expats alike are used to paying less than SR25.”
Trip fares are currently determined through bargaining between the customer and the taxi driver, but with the introduction of metered fare, taxi drivers will be required to pay higher amounts to their employers daily when this decision is applied. “While we will be required to pay more than SR250 in daily profit to our employers, taxi drivers will have to face customers who will not be willing to go by the meter fare,” said Salem Al-Sanaani, a Yemeni taxi driver. Majada, a nurse at a Jeddah hospital, said she is dependent on taxis for her mobility, and that she pays SR10 per trip.
“Once the meter decision is implemented, no taxi driver will be willing to work for anything less than SR20 because their excuse will be that the company they work for will demand doubling of their daily revenues,” she said. Ali Al-Ghamdi said he has made special provision in his budget to visit hospitals. “It used to cost me SR25 for a one-way trip from my house to the hospital. Taxi drivers are now demanding SR40,” he said, adding that he is forced to cancel his visit to hospital because of the high taxi cost. Expat Mukhtar Ahmad said he relies on taxis and says up until recently, the fares were reasonable. “Today, the tariffs have gone haywire and I have stopped using taxis altogether and use private (taxi) cars although it is a violation of the law,” he said.

Causeway capacity boosted amid congestion complaints

jochemgeheniau — Fri, 19 Jul 2013 08:30:19 +0000

DAMMAM — The King Fahd Causeway that links Saudi Arabia to Bahrain is undergoing an ambitious development program that has dramatically driven up its capacity, according to the director of the King Fahd Causeway Authority.

Badr Al-Otaishan told Al-Sharq daily that two islands will be constructed on either side of the bridge to increase capacity. Each island will be able to hold 250,000 travelers daily.
Customs and passport checks will be moved to the islands and the distance between them will be 20 km to ensure that the traffic on the Bahraini side does not extend to the Saudi side.
Al-Otaishan said a short-term plan to eliminate pavements and water fountains has expanded the causeway from 10 lanes to 18 lanes wide.

Al-Otaishan linked the heavy queuing on the causeway to the large number of Saudi families going to Bahrain, a number greater than the causeway’s capacity. He pointed out that 18.5 million passengers crossed the bridge in 2012 alone. The director said the short distance of 300 meters between the Bahraini and Saudi sides and the different customs procedures and passport checks employed on each side may be contributing to the delays.

Railway along King Fahd Causeway under study

jochemgeheniau — Fri, 12 Jul 2013 08:24:57 +0000

The governments of Saudi Arabia and Bahrain are studying the possibility of building a railway line parallel to King Fahd Causeway to ease the flow of goods between the two countries. This is part of a larger 2,177 km Gulf Cooperation Council (GCC) railway project that will connect Kuwait, Qatar, the United Arab Emirates and Oman. Bahraini Transport Minister Kamal Ahmad said studies are under way to determine the project’s feasibility. “The Saudi and Bahraini governments have charged five organizations to study the possibility of building a bridge that will hold railway tracks parallel to King Fahd Causeway,” said Ahmad.
The five organizations are the two countries’ ministries of finance and transportation and the King Fahd Causeway Authority. Ahmad said the project would link up with an internal network of railways and ports in the two countries. “This will include two lanes, one for the railway tracks and the other for cars.” On cargo blockages between the two countries, he said: “Our country is pursuing, with the cooperation of Saudi Arabia, to develop regulations to transport goods via King Fahd Causeway to minimize the amassing of trucks, and to make available enough space for the storage of goods.”
The causeway, added the minister, allowed businessmen of the two countries to transport goods at reduced costs. He said sea transport was more expensive. Khalifa bin Salman Port, which is under the management of global terminal operator APM Terminals, is capable of accommodating all shipment orders if Saudi businesspeople decide to prefer the sea route. The proposed GCC railway project will be 2,177 km starting from Kuwait City, through Dammam then off to Bahrain via the bridge to be built parallel to the causeway. A future project will link Bahrain with Qatar via another causeway.
The project will include a land track that will launch from Dammam to Qatar via Salwa outlet, then to the United Arab Emirates via Albatha outlet, toward Abu Dhabi and Al-Ain, extending out to Oman and Muscat, said the minister. The initial cost of the project is an estimated $ 10 billion. The costs will vary depending on whether railway lines are built on land or over the sea. Ahmad said Bahrain approved the technical specifications of the connections. “Technical meetings are ongoing to work out the legal issues of the project, and operations and management according to the highest global standards,” he said.
He said the train would travel at a top speed of 200 km/hr. The deadline for the completion of the project is 2018, as decided by GCC leaders, “which compels us to make haste with construction to meet this deadline.” He said the project would enhance economic integration of the GCC.

Qatar plans to invest USD140bn in transport infrastructure

jochemgeheniau — Tue, 09 Jul 2013 10:16:32 +0000

A recent Deloitte report entitled ‘Insight into the Qatar construction market and opportunities for real estate developers’ examines the construction market in Qatar and assesses opportunities for real estate developers in the country. Having been selected to host the FIFA World Cup in 2022 brought forth the opportunity for Qatar to position itself as a regional sporting hub. Qatar National Vision 2013 and programs such as Q2022 are focusing on leaving a legacy for Qatar in terms of football, infrastructure and economic development. The Deloitte report looks into the government’s strategy of promoting sustainable tourism with the purpose of attracting more tourists and visitors. Projects such as the Qatar-Bahrain causeway is an example of this strategy, as it will help drive regional tourist arrivals in Qatar. In terms of infrastructure, the Deloitte report examines Qatar’s plans to invest over $ 140 billion in transport infrastructure in anticipation of the FIFA World Cup 2022. Plans to construct new roads and a metro system have been put forth in order to support the anticipated influx of football visitors in addition to the airport expansion, which is already under way. Deloitte experts expect this influx to also bring with it an increased demand for accommodation, with numerous worldwide chain hotels actively considering investments in the country. In fact, Qatar Tourism Authority plans to invest about $ 20 billion on tourism infrastructure as the number of tourist arrivals grows at a rate of 15.9 percent compounded annually, to reach 3.7 million by 2022. This growth also creates opportunities for the development of commercial units, such as various shopping malls around Qatar. Environmental sustainability has become a key item in the government’s agenda. One of the key goals for the Q2022 program is to improve environmental sustainability, not only limited to the event but also for the entire country. The Deloitte report suggests that the program may deliver a new environmental sustainability standard and improve nationwide awareness. It is evident that immense opportunities exist for developers in the region and beyond, due in part to the infrastructure requirements of the FIFA World Cup 2022, and also as part of realizing Qatar’s national vision. Jesdev Saggar, managing director, infrastructure and capital projects at Deloitte. Corporate Finance Ltd. commented: “With the world focused on Qatar’s every move, it is imperative that the local industry prepares itself for the plethora of international organizations that are ready to descend on Doha. Preparing for the competition is as important to everyone on the built environment, as it will be when the games start.” These findings are in line with the “GCC powers of construction: Meeting the challenges of delivering mega projects” report issued by Deloitte during May 2013. The fourth publication in its series and the only one of its kind among the financial services industry in the Middle East. The GCC Powers of Construction report highlights that the ingredients for capital projects could not be better in the GCC region as the I&CP (infrastructure and capital projects) market is growing rapidly with governments announcing projects across the Middle East region, utilizing trillions of petro-dollars over the coming years. According to this Deloitte report, clients’ increasing need for transparency, predictability and sustainability of what they spend provides contractors with an opportunity to reflect on how they can meet this by better operational performance, improved procurement, schedule management and cost reporting. The report highlights the case of Qatar, whereby Qatar was the third most active GCC construction market in 2012, with $ 10.4 billion worth of contracts awarded. Transport infrastructure dominated Qatar’s construction sector, with four of the five biggest contracts awarded for major transport projects. Hosting the FIFA 2022 World Cup should yield considerable contracts across the construction and infrastructure sectors. “With significant investment in major infrastructure programs increasing over the coming years across the GCC, contractors, consultants and clients alike need to rethink the way they engage each other if they are to truly realize the benefits each can bring to the process,” said Cynthia Corby, audit partner and leader of the construction industry for the Middle East. As to Qatar, Deloitte suggests that successful bidders will have to take into consideration a number of factors such as alignment with Qatar’s 2022 program strategic objectives, adherence to sustainability and health and safety standards, innovation, quality and with an overall focus on the legacy theme, which is embedded in the strategy for delivering the Qatar 2022 World Cup.

Work starts from the ground up in Qatar

jochemgeheniau — Fri, 05 Apr 2013 09:39:15 +0000

Large-scale tunnelling schemes will provide base for Qatar infrastructure ahead of the Fifa World Cup

Doha is about to become the tunnelling capital of the Middle East as it moves forward on a series of multibillion-dollar infrastructure schemes ahead of the Fifa 2022 World Cup.

The projects that involve large-scale tunnelling works are the Doha Bay Crossing, the Inner Doha Resewerage Implementation Strategy (Idris), and the Doha metro scheme.

The most advanced scheme is the Doha metro. Contractors submitted bids for the tunnelling packages at the end of last year and awards are expected imminently for the Red Line South and Red Line North packages.

The two other schemes are at earlier stages. After the appointment of US-based CH2M Hill as programme manager in 2011, contractors have now been invited to prequalify for the first construction packages on the Idris scheme, with tendering and contract awards expected to start later this year.

The Doha Bay Crossing, which involves building a series of bridges and tunnels, is at an even earlier stage, but after some doubts on the future of the project, US-based Fluor and the local office of KEO International Consultants have now been appointed to manage the project – the clearest signal yet that the estimated QR10bn ($2.7bn) scheme will move ahead.

As Doha gears up for the World Cup, most eyes will be on the stadiums and other facilities that will be built above the surface, but most of the real work will be going on underground.

Preparations for public transport in Riyadh in full swing

jochemgeheniau — Mon, 11 Mar 2013 09:29:47 +0000

RIYADH – Prince Khaled Bin Bandar, Emir of Riyadh region, has said that studies and preparations for introducing public transport system for the capital city are in full swing.

“The system, which consists of networks of trains and buses, will ease traffic flow and put an end to congestion,” he said.

The Emir was speaking to reporters Sunday after opening two road projects in the city.

Prince Khaled, who is also chairman of Riyadh Development Authority (RDA), opened the extension of two roads (Abubakar Al-Siddiq and Al-Arouba) that passes through the Riyadh Airbase, and the tunnel at the intersection of King Abdul Aziz Road with Al-Arouba Road.

The Emir also laid foundation stone for the tunnel project at the intersection between Salahuddin Ayyubi Road and Makkah Road.

Prince Khaled named the square at the intersection of Abubakar Al-Siddiq and Al-Arouba after Prince Sattam Bin Abdul Aziz, the late Emir of Riyadh. Accompanied by Prince Turki Bin Abdullah, Deputy Emir of Riyadh, and RDA officials, the Emir made an inspection tour of the control room of Riyadh traffic department.

Ibrahim Al-Sultan, a member of the RDA and head of its center for projects and planning, said that the new projects would be instrumental in easing traffic jams on the two roads through which more than half a million vehicles pass by in a day.

The official recently disclosed that RDA had approved a comprehensive plan to overhaul the capital city, keeping wide, open areas in the city center and building a ring road around them.

“The project will bring about a facelift of downtown Riyadh and make it an outstanding historic, administrative, economic and cultural center in the Kingdom,” Al-Sultan said adding that 3,088 development projects worth SR278 billion are being implemented in different parts of Riyadh region.

Prince Khaled also opened the activities of the GCC Traffic Week. The week with the slogan “Our goal is your safety” is organized by the Traffic Department in Riyadh region in cooperation with the Saudi Aramco.

Zain KSA declared it will launch a traffic awareness campaign simultaneously with the Gulf Traffic Week, adding that it will broadcast a number of awareness messages to its employees, subscribers, and social networking accounts followers.