It has been a mixed month for the fortunes of fast railways.
On the one hand, Indonesia has just launched “Whoosh”, South-East Asia’s first bullet train. On the other, the United Kingdom has just scrapped a key section of its HS2 project, citing prohibitive projected costs of £106 billion ($129.46 billion).
But if high-speed rail has hit the buffers in Britain, for the rest of the world it’s full speed ahead.
More than a dozen new services on five continents are in the pipeline. These include Etihad Rail’s 1,200km network that will eventually whisk passengers at 200kph from the Saudi Arabian border across all seven emirates and into Oman.
Investment in high-speed is not an extravagance, but an investment in changing the mobility system and the system of social behaviour
Krzysztof Maminski,
International Union of Railways
The “Whoosh” trains – an acronym in Indonesian for “timesaving, optimal operation, reliable system” – have slashed the journey time between the capital Jakarta and Bandung in West Java from three hours to 40 minutes.
The Chinese-built trains, part of Beijing’s Belt and Road initiative, travel at up to 350kph, with the whole project estimated to have cost about $10 billion. That translates to about $50 million per kilometre of track.
In contrast, Britain’s HS2, which would have run from London to Manchester via Birmingham was expected to cost £306 million for each of the 345 miles (555km) of track – with a completion date some time in the 2030s.
High-speed future
Embarrassing as this is for the country that gave the world the first passenger trains as far back as 1825, nearly 200 years later high-speed rail is seen as the future almost everywhere else.
The data website Statista estimates the Asia Pacific region, which includes Australia, has nearly 7,000km of high-speed rail in the pipeline.
For Europe, the figure is nearly 6,000 and in the Middle East nearly 5,000km. Africa is building more than 2,000km and North America about 1,500. Only South America is missing out.
This year’s International Union of Railways was held in Morocco, where its chairman, Krzysztof Maminski, said: “The number of countries making use of high-speed railways is only increasing, as additional countries are in the process of developing projects. Investment in high-speed is not an extravagance, but an investment in changing the mobility system and the system of social behaviour.”
The host country, Morocco, is one of those investing in high-speed rail, defined by the IUC as “infrastructure for new railway lines designed for speeds of 250kph and above, or upgraded existing lines for speeds of up to 200kph or even 220kph.”
HS2 rail project – in pictures
Al Boraq, named after the mystical creature that transported the Prophet Mohammed from Makkah to Jerusalem in a single night, connects the cities of Casablanca and Tangier. Completed in 2018, it was Africa’s first high-speed train, with future plans for a Maghreb link from Rabat to Fez.
In Europe, France is building a new line from Lyon to Turin in Italy, expected to be complete in 2030. The Baltic states of Estonia, Latvia and Lithuania are planning an 870km connection with the rest of Europe, a project both political and economic given they were once client states of the Soviet Union.
For length though, nothing competes with two projects in North America. The California High Speed Rail line should connect Los Angeles and San Francisco, a distance of 1,300km, in less than three hours.
Cost overruns and environmental concerns have often threatened to derail the project, with only the central section currently under construction and unlikely to be carrying passengers before 2030.
Canada’s High Frequency Rail project will link Toronto with Quebec City. Although still in the planning stage, procurement for building has begun, with the hope that trains will run by 2030.
Australia is also late to the game, despite an experiment with tilting trains that reached a top speed of 210kph in the 1990s. Earlier this year, the country created a new High Speed Rail Authority, charged with building a network on the east coast.
The new line will connect Sydney with Newcastle, a distance of only 162km. By the time it reaches Melbourne, though, it will be the 2050s.
Longest and fastest
One country where high-speed rail is very much a thing of the present is Turkey, which in 2003 began building and now connects major cities, including Istanbul and the capital Ankara, via a flagship service that completes the 562km at speeds of up to 250kph.
By next year Turkey expects to have about 10,000km of high-speed railway, which it is building with help from a Chinese consortium.
It brings the number of countries with high-speed trains to 29, although some run only on an upgraded track, a much cheaper if slower option than purpose-built lines.
Although the world’s first high-speed service was Japan’s legendary Shinkansen, or bullet train, in the 1960s, it is China that now leads the way.
The world’s longest network has reached 42,000km, two thirds of the global total. It includes the world’s longest high-speed line, 2,298km from Beijing to Guangzhou on the border with Hong Kong, which takes just nine hours. China also has the world’s only high-speed sleeper trains.
The China Railways Harmony trains are also recorded as the world’s fastest, reaching 486 kph in testing, although the Shanghai Maglev, a levitating train that connects to the airport, has recorded a top speed of 501kph.
Three years ago, a Chinese company was reported to have put in a bid to build the UK’s HS2, saying they could complete it in five years and at half the expected price.
The offer came to nothing. Instead, Prime Minister Rishi Sunak has decided to use £8 billion ($9.76 billion) of the money saved from scrapping the link to Manchester to fill in potholes on Britain’s crumbling roads.
By coincidence, this is also almost exactly the price of Indonesia’s new high-speed rail service.
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Scoreline
Arsenal 0 Manchester City 3
- Agüero 18'
- Kompany 58'
- Silva 65'
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
The Little Things
Directed by: John Lee Hancock
Starring: Denzel Washington, Rami Malek, Jared Leto
Four stars
UAE currency: the story behind the money in your pockets
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, Leon.
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
MATCH INFO
Final: England v South Africa, Saturday, 1pm
Five expert hiking tips
- Always check the weather forecast before setting off
- Make sure you have plenty of water
- Set off early to avoid sudden weather changes in the afternoon
- Wear appropriate clothing and footwear
- Take your litter home with you
The figures behind the event
1) More than 300 in-house cleaning crew
2) 165 staff assigned to sanitise public areas throughout the show
3) 1,000 social distancing stickers
4) 809 hand sanitiser dispensers placed throughout the venue
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
Honeymoonish
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Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
MATCH INFO
Manchester United 1 (Rashford 36')
Liverpool 1 (Lallana 84')
Man of the match: Marcus Rashford (Manchester United)
Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
RESULTS
Lightweight (female)
Sara El Bakkali bt Anisha Kadka
Bantamweight
Mohammed Adil Al Debi bt Moaz Abdelgawad
Welterweight
Amir Boureslan bt Mahmoud Zanouny
Featherweight
Mohammed Al Katheeri bt Abrorbek Madaminbekov
Super featherweight
Ibrahem Bilal bt Emad Arafa
Middleweight
Ahmed Abdolaziz bt Imad Essassi
Bantamweight (female)
Ilham Bourakkadi bt Milena Martinou
Welterweight
Mohamed Mardi bt Noureddine El Agouti
Middleweight
Nabil Ouach bt Ymad Atrous
Welterweight
Nouredine Samir bt Marlon Ribeiro
Super welterweight
Brad Stanton bt Mohamed El Boukhari