The network aims to cut freight costs, improve regional connectivity, and provide alternative trade routes during disruptions in the Strait of Hormuz
The six Gulf states signed a general agreement on Nov. 8, in Manama, Bahrain, to advance a railway network connecting all six members of the Gulf Cooperation Council (GCC), with full operations targeted for December 2030.
According to a statement from the Gulf Railways Authority (GCCRA), the project will connect all the member states—Kuwait, Saudi Arabia, Bahrain, Qatar, the United Arab Emirates, and the Sultanate of Oman. The project was initially estimated to cost $16 billion, but that estimate is now under review and is expected to increase.
The network is expected to carry both freight and passengers, with passenger trains reaching speeds of about 200 kilometers per hour and freight trains operating at 80 to 120 kilometers per hour.
Mohammad Al Shabrami, director general of the GCCRA, told reporters on the sidelines of the signing ceremony in Manama that the railway is expected to carry 6 million passengers annually by 2030. That figure is projected to rise to over 8.5 million by 2045. He added that the network is projected to transport at least 200 million tons of freight annually.
According to Al Shabrami, “More than 55% of this project has been completed, with both the United Arab Emirates and the Kingdom of Saudi Arabia having begun the implementation of sections of the railway within their respective territories.”
More than 55% of this project has been completed
Beginning next year, the railway will commence operations between the United Arab Emirates and the Sultanate of Oman. Service will be introduced gradually between individual pairs of countries until the entire project reaches full completion by the end of 2030.
The concept of a Gulf railway dates back to 2009, when the Gulf summit held in Kuwait approved a project to establish a railway network connecting the six member states of the Gulf Cooperation Council.
In December 2021, GCC leaders agreed to establish the GCCRA to regulate the rail transport sector across the member states. The authority is tasked with coordinating the implementation and operation of the project as a single, integrated regional network, while ensuring the compatibility and integration of the various national rail networks.
Shipping disruptions in the Strait of Hormuz have highlighted the potential value of alternative trade routes, including rail connections to ports outside the Persian Gulf, such as Fujairah, ports in Oman, and Saudi ports on the Red Sea.
Khalid Al-Awni, a Saudi economic journalist, told The Media Line that “the recent crisis has highlighted the importance of diversifying logistical sources in the Persian Gulf.”
He said that urgent measures were taken to ensure the continuity of supply chains during the disruptions in the Strait of Hormuz. “However, these were merely temporary solutions. Therefore, there is a need for a broader range of options for both freight and passenger transport.”
“Integrating this railway with the national networks of each Gulf state would provide greater flexibility for transport and travel between these nations,” he noted.
Ahmed Al-Aradi, a Kuwaiti economic analyst, told The Media Line that the project should have been implemented some time ago, but faced several challenges that caused delays.
“When the project was first proposed in 2009, oil prices were higher than they are today, and project costs were lower. While costs have since risen and oil prices are lower than what we previously saw, it is still a case of ‘better late than never,’” he said.
He said that the project would “undoubtedly yield significant economic returns for all Gulf states—particularly countries like Kuwait, Bahrain, and Qatar, which currently rely solely on the Arabian Gulf for maritime transport, alongside land and air routes,” noting that “a railway of this kind will connect major ports located outside the Arabian Gulf to these nations, offering a faster and more cost-effective means of transport.”
Hadeel Ahmed, a Saudi expert in transport and logistics, told The Media Line that the Gulf railway will reduce shipping costs by at least 20%.
“Road transport via trucks is expensive, especially as demand rises. We saw shipping costs surge by more than 300% during the recent crisis in the Strait of Hormuz; a Gulf railway would lower transport costs between the member states,” she said.
In the future, this network could be linked to other networks—passing through Iraq or Jordan, and continuing via Syria to Turkey and Europe
“In the future, this network could be linked to other networks—passing through Iraq or Jordan, and continuing via Syria to Turkey and Europe—which would make land transport between Europe and the Gulf states significantly cheaper and faster.”
She argued that had the railway been in place during the unrest in the Strait of Hormuz, transport costs would not have spiked. “Ships could have docked at any port outside the Arabian Gulf—such as the Port of Salalah or even Fujairah—and goods could then have been transported to the rest of the Gulf Cooperation Council states at stable, fixed rates.”
Source: Iwpost.com
