GCC RAILWAY DEVELOPMENT: A VISION TO INTEGRATION. Ramiz Al Assar, Ph.D.
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1 GCC ILWY DEVELME: VII IEGI amiz l ssar, h.d. World Bank r. dvisor to GCC-G GCC ransport and ailway Conference Doha- tate of Qatar (February 1-3, 2011)
2 opics GCC Key Indicators. ole of the World Bank. ransport in M: Issues & ecommendations. GCC ailway Development. in ransport: Challenges / pportunities. Lessons Learned - ecommendations. Future utlook.
3 he GCC G Formed in May 25, 1981 Mandated with: romoting closer economic, political and cultural integration between M. Developing a common approach to global and regional integration. new Economic greement was adopted in 2001: Created a Common Market (2008), Monetary Union (2009), Customs Union (2003) and development of egional Integrated ransport rojects.
4 GCC Key Indicators (otals in 2009 Figures) rea: 2.7 million km². opulations: 37.5 m. audi: 24.8 m( 66%). UE and man: 7.7 m (20.4%). Bahrain Qatar and man : 5.4 m (13.6%). GCC Intra rade: 70 billion. ransport ector: aved oads: 97,000 km. egistered Vehicles: 15.3 m. assenger ravel: 121 m/year. ccidents: 73,400/year.
5 World Bank ole: GCC ransport ector rovides in ransport infrastructure development and service provisions: trategy, olicy and egulations. Know-How and Good ractices Benchmarking. Quality ssurance. Institutional et Up - Capacity Building. Key rojects: audi roject, formation of. GCC ransport and ailway ector.
6 ransport in M: WB erspective - Key Issues ransport in ME region is central to accelerating economic development through export led growth, creating jobs, and reducing vulnerability and exclusion. It is key to regional integration and vital to improving the quality of life and reducing poverty. ransport in ME region is well developed - extensive road networks, important facilities for air and sea transport, and a sizable rail network.
7 ransport in M: WB erspective - Key Issues However, quality of transport infrastructure is often deficient unable to support growing, modern economies. Congestion is a growing hence, railway plays a significant role in passenger and freight transport. Institutions in charge of sector are generally in place, but: policy formulation and management capacity are often weak. egulatory and financial systems need further development, especially to encourage more private sector participation
8 ransport in M: WB erspective - Key Issues eed to Further Facilitate rade & romote Growth and egional Integration through Greater ransport Efficiency Economic Growth and Employment Generation. Upgrade and develop Urban ransport ervices -60% of populations in Urban reas. Expanding ccess to ural reas- ustainable Development ccess to health, education, and Markets.
9 ransport in M: WB erspective - Key Issues Meeting Growing ransport eeds by Increasing the ole of the rivate ector U$5.7 billion in 1997 and been on steady decline ever since. Climate Change ransport Energy Use, Emission and EI. Enhancing the ransport ector s Contribution to ocial Development ccessibility and Mobility.
10 ransport in M: WB ecommendations Improve Expenditure atterns in the ector. Increase erformance and Capacity of the ublic ector. Develop a ustainable Framework for Efficient rivate ector articipation in ransport Infrastructure Development and ervices. educe C2 Emission and dopt the ransport ector Climate Change ustained Investment /Lending for the ransport ector.
11 he GCC ailway roject GCC ailway roject: egional Integrated railway Connecting GCC M. Length of 2117 km and Cost about U$15.4 billion. Expected to be operational in 2017/2018. Economically and financially viable, GCC M pay capital infrastructure costs. Minimum dverse EI. Integrates with ational ailway, Metro lans and ransport Hubs in GCC M. GCC M Currently rocuring for the DED (2012). etting up a GCC ailway uthority. eeking (Construction to Commence 2014).
12 he Endorsed GCC ailway oute
13 GCC ailway Link to Yemen Length: 1373 km. Cost: U$10 billion. Completion:
14 in GCC ransport ector: Key Challenges Government's Budget hortfalls Constraint but not an bstacle: General Budget Can no Longer upport eeds to upport Expansion of ransport Infrastructure and rovisions of ervices. Cannot fford Business-as-Usual: Limit Competition and Improved Efficiency in the ector. Lost pportunity for Balanced and ustained ransport etwork. May Hamper the Country s Economic Growth and development.
15 in GCC ransport ector: Key Challenges eed a hift in aradigm: ublic ector ole to develop a olicy and trategy for the ector, rivate ector to rovide finance for ransport Infrastructure and ervice rovisions. Develop a ransport olicy/trategy with the Vision: GCC M - egional, Integrated and Global ransport Hub. Encourage rivate ector articipation- artnership. Build Up Institutional Capacity- Both rivate and ublic ector.
16 in GCC ransport ector: pportunities obust ransport ystem is Foundation of ustainable Economic Growth & Development for GCC: rovides rovision of Well Balanced egional ransport etwork (oads, ailways,, orts and viations). Improves ccess to ervices: Health, Education, Industries, ourism- For both Urban and ural reas. preads prosperity While reserving Environment & ocial & Cultural values. Further Boosts rade Facilitation amongst GCC: Improved Economic Integration- W.
17 in GCC ransport ector: pportunities Lack of obust ransport ystem Would Lead to an Under-erforming ransport ector Causing: erious ational Economic stagnation- Lost pportunities. Unnecessarily uppressed activities in nonurban reas- Lack of Balanced and ustained Development. evere raffic Congestion in Urban reas- Damaging the Environment and Increasing ccidents. Limited ccess to an Integrated ransport etwork- oorer ervice rovisions in nonurban reas.
18 - International Experience: What Have We Learned? rivate Infrastructure chemes when well designed can bring real benefits hence. But- rojects & reforms based on unrealistic policies or expectations will bring disappointments.
19 - International Experience: What Have We Learned? GCC Governments are addressing question of how infrastructure services are paid for? When serving the poor- Government should allow for a range of service options when developing chemes.
20 - International Experience: uccess Factors o substantially increase the role of rivate ector in ransport, a number of factors contribute to success: trong Government olicy upport. upportive Laws and Institutions. pecialized Unites to Handle Implementation,, U,etc. pecific rogram of argeted reas for Increasing. Well Drafted Contracts and greements. Willingness of the ublic ector to Cede Management- as opposed to olicy Control.
21 Economics of ransport Is the ame ll over the World?
22 GCC rovides Enabling Environment for emoving bstacles to rivate ector articipation: ignificant eforms in the Legal Environment Legislation & Enforcement. dministrative Inertia. Financial Distortions. Vested Interest. Government as ule-maker, layer and eferee. Institutional Uncertainty and Unreliability.
23 Enabling Environment for : teps to Make it Happen GCC M are Currently: etting Up ransport uthorities for ransport olicy, trategy and egulations. Developing ound Legal environment. Considering a Flexible but Competitive rocurement ystem. eeking Diverse ources of revenues- to upport Government Budget and Innovative rivate ector Financing. Compact Vested Interests. Clearing the Definitions of oles and esponsibilities and allocations of risk to those best able to manage. Building Up the Capacity of Both rivate/ublic ectors.
24 cope of in the GCC ransport Development GCC M are encouraging the rivate sector to effectively finance transport Infrastructure and/or services Including: Management & Lease Contracts. Concessions for Existing ransport Facilities. Concessions for Greenfield rojects GCC ailway roject. oad haulage, bus companies, taxis, shipping companies, airlines, train operating companies, freight forwarders.
25 cope of in the GCC ransport Development oads: I in raffic Management. Multi-year, performance-based road maintenance contracts or concessionsyield better maintained roads at lower costs. olling of elected oads- dditional ources of evenues. Highways, rail tracks, waterways, airspace, navigation channels, basic port and airport infrastructure.
26 cope of in the GCC ransport Developments audi (): raditional (Design, Build, perate and Maintain). audi Land-Bridge (iyadh-jeddah) (): B - raditional? Likely to Change to raditional. Haramain High peed rain (Makkah-Jeddah- Madina): DB and perate and Maintain. GCC ailway Various procurements between traditional (man), DB and B (Qatar l ail; UE Union ail; Kuwait ail Company).
27 cope of in the GCC ransport Development ailways: audi ublicly wned ailway Company with hares to be floated once railway positively operational ( roject). UE Union ail Company to develop the ational ailway etwork. Kuwait ailway etwork will be developed by Government (24%), ublic (50%) and rivate Investors (26%). Qatar ational ailway and Metro etwork will be developed by Government (51%) and rivate (49%). roposed Causeway Linking audi with Bahrain proposed development by rivate (100%).
28 Lessons Learned: ecommendations eed to well Design the rivate Infrastructure chemes to Bring eal Benefits to ransport Infrastructure Development. eed to Develop ealistic olicies and eforms to ensure uccessful ransport roject Development and Finance. eed to Effectively ddress How Infrastructure Development and ervices rovisions re aid For? Governments to llow for a ange of ervice ptions when Developing rivate articipation chemes to erve the oor ().
29 Lessons Learned: ecommendations GCC Governments to Develop Managed Competition for the ransport ector to Help educe rices and Expand ccess. GCC Governments to develop a egulatory Framework that is Credible and Legitimate to Ensure Delivering Quality ransport Infrastructure and ervices rovisions. Endorse a Uniform rocurement of Goods and ervices for the egional Integrated ransport Development. s GCC M are focusing on egional Integrated ransport etworks, Building Consensus is Utmost Important and will emain Most Challenging!
30 Future utlook lan to identify a few specific schemes for private approach: get runs on the board. coping studies to determine feasibility, necessary conditions and regulatory framework (if any). Frequent interaction/consultation between public and private sectors to develop and finance regional integrated transport infrastructure and services provision.
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