For a connected and prosperous economy

Demand for transport is growing fast worldwide due to unprecedented challenges arising from accelerated socio-economic developments. If the current trend continues, passenger and freight activities, according to reports, will more than double in the next four decades.

The global average annual land-based passenger demand is projected to grow at a rate between 1.3 per cent and 4.1 per cent, while the annual growth rate for land-based freight demand ranges between 3.1 per cent and 3.6 per cent across the 30 years till 2050.

This means greenhouse gas emissions (GHG), for which the transport sector is the fourth largest source with an annual 2 per cent growth, will rise and worsen the climate crisis.

In a world that is witnessing further urbanisation, rail transport, which is more energy efficient and generates lower emissions per passenger and per tonne of goods than almost all movement by road and air, is well matched to today’s travel and freight movement needs.

In a report, the International Energy Agency projects rail among the most efficient and lowest emitting modes of transport. In particular, urban and high-speed rail holds major promise to unlock substantial benefits, including cuts in greenhouse gas emissions, congestion and air pollution. Globally, three-quarters of rail passenger movements and half of rail freight rely on electricity.

In this context, the $3-billion railway network project linking the Sultanate of Oman and the United Arab Emirates marks a new beginning not only connecting the two countries, but also potentially bringing significant development in the Gulf as an efficient and relatively cleaner mode of transport.

Oman and the UAE-Oman Rail Network developer Etihad Rail Company have already signed an agreement with Mubadala Investment Company to develop the 303-km route.

Put up on the historic and strategic ties, the partnership is the result of the efforts of leadership in the two countries, the rail network is a good example of strengthening bilateral relations and how it is possible to conceive and implement the project across national borders with ease.

The key transport link, first announced in September, is an extension of the longstanding collaboration of Oman Rail and Etihad Rail, who both seek to create new prospects in the infrastructure, transport and logistics industries.

Once on the track, the dependence on air and road transport will lessen. More importantly, it makes travel easy for people on both sides as the railway diversifies and expands to other parts of the two countries and the region.

In addition, the network will also provide trade and investment opportunities for the private sector, providing new job opportunities apart from training national human resources in both countries, enriching tourism activities, improving the competitiveness of Oman and the UAE in global trade, and establishing their position as logistics hubs that serve as gateways to markets in the region.

The network will employ the highest international security, safety and environmental standards to provide safe and fast passenger and freight services.

The rail line will be fast enough to dramatically reduce travel times. Passenger trains are expected to run up to 200 km per hour, reducing the time of the journey between Suhar and Abu Dhabi to 100 minutes, and between Suhar and Al Ain to 47 minutes, while the freight train speed will reach 120 km per hour.

The key aspect, as analysts point out, is that the project is being financially supported by the Mubadala Investment Company instead of the direct involvement of the government as far as investment is concerned. This, they say, will make the project self-sufficient and run on principles of fiscal efficiency and corporate good practice.

This means the new rail system should be able to run on its own and evolve a revenue model that is self-sustaining without depending on governmental aid like many countries, especially India.

Finally, in view of the rising number of investments in logistics and infrastructure, Oman should be able to offer to its neighbouring countries in particular and the region in general one of the most efficient transport hubs.