Etihad Rail, formerly known as Union Railway, has suspended plans for a dedicated passenger link between Abu Dhabi and Dubai, and will press on with freight lines instead.
The company's Dh40 billion (US$10.89bn) nationwide rail project is now scheduled to be 1,200km in length, built in three phases across all seven emirates between next year and 2019. This is a change from last year's plan, when it was expected to extend 1,500km, including a commuter line between the UAE's two largest metropolitan areas.
"When we talked about a 1,500km network, it did include the possibility of a direct route to Abu Dhabi and Dubai for passenger trains," said Richard Bowker, the chief executive of Etihad Rail. "Our priority at the moment is the mixed freight and passenger network. Maybe we will come back to it."
Even though the dedicated link is not yet going ahead, Etihad Rail eventually plans to include passenger services on its freight network, although the route will run through the desert rather than along the coast.
"By any measure what we are trying to achieve would be considered colossal," Mr Bowker said. "[Right now] it's all about priorities, it's all about focus."
Separately, Abu Dhabi's Department of Transport has been studying the feasibility of long-distance passenger rail services to other emirates, but a decision has yet to be made.
The nationwide network is designed to transport about 50 million tonnes of cargo and 16 million passengers.
The first line will be a 270km link to carry granulated sulphur between the Shah gasfield and the Ruwais industrial cluster for the Abu Dhabi National Oil Company, reflecting Etihad Rail's primary objective of transporting goods and heavy industrial products such as steel, concrete and petrochemicals.
That line will gradually be extended to Dubai and the Northern Emirates to link up ports, airports and manufacturing centres. While the railway system will be driven by diesel engines - the format selected for the planned GCC railway - there are contingency plans for Etihad Rail to transition to electrified trains later, officials said.
The railway is expected to significantly reduce emissions from lorries, as well as reducing road congestion and the need to build more motorways. It is estimated that one train can handle the freight load of 300 lorries.
Some 21 consortiums, representing up to 60 companies, are said to have pre-qualified for the first construction contract.
The first deal, as well as other awards for wagons and trains, should be concluded soon, Mr Bowker said. "All of those three contracts are out on the market, and it is our hope and intention that before summer we will be able to place all of those contracts."
Construction on the route linking Habshan with Ruwais will begin during the second half of next year and will be completed in early 2013, the company said. The extension to the Shah gasfield is scheduled to be finished by the end of 2014.
igale@thenational.ae
Fund-raising tips for start-ups
Develop an innovative business concept
Have the ability to differentiate yourself from competitors
Put in place a business continuity plan after Covid-19
Prepare for the worst-case scenario (further lockdowns, long wait for a vaccine, etc.)
Have enough cash to stay afloat for the next 12 to 18 months
Be creative and innovative to reduce expenses
Be prepared to use Covid-19 as an opportunity for your business
* Tips from Jassim Al Marzooqi and Walid Hanna
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The Specs:
The Specs:
Engine: 2.9-litre, V6 twin-turbo
Transmission: 8-speed automatic
Power: 444bhp
Torque: 600Nm
Price: AED 356,580 incl VAT
On sale: now.
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Generational responses to the pandemic
Devesh Mamtani from Century Financial believes the cash-hoarding tendency of each generation is influenced by what stage of the employment cycle they are in. He offers the following insights:
Baby boomers (those born before 1964): Owing to market uncertainty and the need to survive amid competition, many in this generation are looking for options to hoard more cash and increase their overall savings/investments towards risk-free assets.
Generation X (born between 1965 and 1980): Gen X is currently in its prime working years. With their personal and family finances taking a hit, Generation X is looking at multiple options, including taking out short-term loan facilities with competitive interest rates instead of dipping into their savings account.
Millennials (born between 1981 and 1996): This market situation is giving them a valuable lesson about investing early. Many millennials who had previously not saved or invested are looking to start doing so now.
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Liverpool 4 (Salah (pen 4, 33', & pen 88', Van Dijk (20')
Leeds United 3 (Harrison 12', Bamford 30', Klich 66')
Man of the match Mohamed Salah (Liverpool)
Paatal Lok season two
Directors: Avinash Arun, Prosit Roy
Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong
Rating: 4.5/5
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