Trains continue to find relevance in today's world. Nick Donaldson
Trains continue to find relevance in today's world. Nick Donaldson
Trains continue to find relevance in today's world. Nick Donaldson
Trains continue to find relevance in today's world. Nick Donaldson


Can the Gulf help lead the global railway renaissance?


Kevin Smith
Kevin Smith
  • English
  • Arabic

March 18, 2022

No completion date has officially been announced for the project. But by the end of the decade, trains travelling at up to 200 kilometres an hour are expected to carry 36.5 million people and millions of tonnes of freight every year, taking thousands of cars and trucks off the UAE's roads.

Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, has described the roughly $13 billion railway programme as the largest project to consolidate the strength of the union for the next 50 years. The government is certainly putting a lot of faith in the railway as an engine of economic diversification.

But it is not alone. In fact, the world has entered what many have described as a "railway renaissance".

While new transport modes such as the hyperloop might steal much of the headlines, they are not yet a reality

The growth in affordability of the automobile in the mid-20th century resulted in the closure of a significant proportion of the world's colonial-era railways. However, concerns about the environment and congestion, as well as rail's higher speeds and large carrying capacity, have sparked a remarkable turnaround. National governments and city administrations, increasingly supported by the private sector, are spending billions of dollars every year to build new railway infrastructure and upgrade existing networks to carry more people and goods.

The UAE's railway is a key link in the Gulf Railway, which is expected to connect networks in Oman, Saudi Arabia, Kuwait, Bahrain and Qatar. Momentum behind the project has admittedly stalled in recent years, but the ambition remains.

Elsewhere, countries as diverse as Egypt, Costa Rica and Brazil have announced major investments in new rail infrastructure in recent months. Europe has set ambitious targets to shift passenger and freight road traffic to rail to reduce emissions from transport, which will require huge spending on new infrastructure. North America's private transcontinental freight railways remain the backbone of the country's economy, carrying millions of tonnes of goods and raw materials every year.

However, for sheer scale of investment, China is out in front.

The Chinese government placed railway construction at the core of the country's transport policy in the mid-2000s and has since overseen a remarkable expansion. Japan might have pioneered high-speed operation with the famous bullet train or Shinkansen in 1964, followed by France with its TGV in 1981, but China has taken high-speed railways into a new dimension. A 40,000km fully electrified high-speed network has been constructed in just 15 years and there are plans to expand the network to 50,000km by 2025. This is more than the rest of the world combined; Spain possesses the next largest high-speed network at 3,100km.

Trains travelling at 350kph have slashed journey times between major Chinese cities, helping to bring the vast country much closer together and providing a transport infrastructure backbone for the next 100 years and beyond. This is a significant improvement on the inaugural 210kph Shinkansen between Tokyo and Osaka. Indeed, rail has continually pushed the speed envelope over the past six decades, helping to deliver ever faster journey times. This compares with aviation where speeds have remained largely the same since the advent of the jumbo jet and have actually fallen back following the withdrawal of Concorde and supersonic passenger flight in 2003.

It is a similar story for the sector's heavyweight champions.

A Concorde takes off from Heathrow Airport, London, on her first commercial flight for British Airways in 1976. Getty Images
A Concorde takes off from Heathrow Airport, London, on her first commercial flight for British Airways in 1976. Getty Images

Heavy-haul railways in Australia, South Africa, the US, Canada, Russia, Sweden and Brazil, which transport various commodities from mine to port, push the boundaries of what is possible. Some Australian railways have a maximum axle load weight of more than 40 tonnes, helping them to carry ever higher volumes of iron ore, a remarkable testament to the ingenuity of track and rolling stock engineers.

Much of the current focus of research and development is on maximising the productivity of existing assets.

Building railways is expensive and takes a long time. But advanced signalling technology is opening the door to fitting more trains onto the same section of track. Due to the large stopping distances required, trains have to run kilometres apart. But work is under way to introduce networks of smart trains, equipped with artificial intelligence, which can respond to what is happening around them and immediately communicate to trains running behind and further up the track to slow down or speed up, reducing the safety margin and boosting line capacity.

Etihad Rail's new passenger rail service – in pictures

  • A rendering of a train to be used on the UAE’s new passenger rail service. All Photos: Etihad Rail
    A rendering of a train to be used on the UAE’s new passenger rail service. All Photos: Etihad Rail
  • Passenger cabins are spacious, allowing people to travel in comfort.
    Passenger cabins are spacious, allowing people to travel in comfort.
  • The commercial benefits of moving cargo meant the initial focus was on freight.
    The commercial benefits of moving cargo meant the initial focus was on freight.
  • Now the focus has turned to the passenger network.
    Now the focus has turned to the passenger network.
  • The service will offer a reliable, safe, efficient, comfortable and environmentally friendly way to travel across the region.
    The service will offer a reliable, safe, efficient, comfortable and environmentally friendly way to travel across the region.
  • Etihad Rail is working closely with the Federal Transport Authority and transport authorities throughout the country to develop existing networks to improve passenger connections.
    Etihad Rail is working closely with the Federal Transport Authority and transport authorities throughout the country to develop existing networks to improve passenger connections.
  • Eventually, population centres across the UAE will be connected to neighbouring GCC countries.
    Eventually, population centres across the UAE will be connected to neighbouring GCC countries.
  • Passenger carriages will feature sleek, well-equipped cabins.
    Passenger carriages will feature sleek, well-equipped cabins.
  • Work on Etihad Rail began in 2009.
    Work on Etihad Rail began in 2009.
  • Greenhouse gases will be slashed by more than 2.2 million tonnes a year once the network is fully operational.
    Greenhouse gases will be slashed by more than 2.2 million tonnes a year once the network is fully operational.
  • The new passenger rail service is expected to significantly reduce road congestion and the number of traffic accidents.
    The new passenger rail service is expected to significantly reduce road congestion and the number of traffic accidents.

Rio Tinto is leading the way with its "autohaul programme". Described as the world's largest robot, the mining company's 1,500km network operates completely automatically. There are no drivers. Operators oversee up to fifty 2.4km-long trains operating simultaneously from a control centre in Perth, more than 1,000km away. Autohaul has helped to increase overall speeds by more than 5 per cent and optimised operations planning, reducing costs for Rio Tinto significantly. Other freight and passenger railways in Europe, Russia and the US are now seeking to replicate this success.

While rail is by far the most sustainable mode of transport, the railway sector is also working hard to improve its green credentials: from reducing noise in urban areas to sourcing electricity from renewables. Where electrification is not economical, work is under way to replace diesel trains with those powered by batteries or hydrogen. Germany operated the world's first hydrogen train with passengers in 2018 and projects have since been announced in France, the US, UK, Austria, South Korea, Japan, Italy, Spain and Canada.

While new transport modes such as the hyperloop might steal much of the headlines, they are not yet a reality. Japan and China are building the world’s first "maglev" lines, but on the whole trains equipped with steel wheels and running on steel rails remain the most effective way of moving large quantities of goods and passengers quickly and safely.

Through Etihad Rail, the UAE is playing a relatively small but very noticeable role in this global railway revival.

Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

POSSIBLE ENGLAND EURO 2020 SQUAD

Goalkeepers: Jordan Pickford, Nick Pope, Dean Henderson.
Defenders: Trent Alexander-Arnold, Kieran Trippier, Joe Gomez, John Stones, Harry Maguire, Tyrone Mings, Ben Chilwell, Fabian Delph.
Midfielders: Declan Rice, Harry Winks, Jordan Henderson, Ross Barkley, Mason Mount, Alex Oxlade-Chamberlain.
Forwards: Harry Kane, Raheem Sterling, Marcus Rashford, Jadon Sancho, Tammy Abraham, Callum Hudson-Odoi.

What are NFTs?

Are non-fungible tokens a currency, asset, or a licensing instrument? Arnab Das, global market strategist EMEA at Invesco, says they are mix of all of three.

You can buy, hold and use NFTs just like US dollars and Bitcoins. “They can appreciate in value and even produce cash flows.”

However, while money is fungible, NFTs are not. “One Bitcoin, dollar, euro or dirham is largely indistinguishable from the next. Nothing ties a dollar bill to a particular owner, for example. Nor does it tie you to to any goods, services or assets you bought with that currency. In contrast, NFTs confer specific ownership,” Mr Das says.

This makes NFTs closer to a piece of intellectual property such as a work of art or licence, as you can claim royalties or profit by exchanging it at a higher value later, Mr Das says. “They could provide a sustainable income stream.”

This income will depend on future demand and use, which makes NFTs difficult to value. “However, there is a credible use case for many forms of intellectual property, notably art, songs, videos,” Mr Das says.

MATCH INFO

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)

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.”

LILO & STITCH

Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders

Director: Dean Fleischer Camp

Rating: 4.5/5

Captain Marvel

Director: Anna Boden, Ryan Fleck

Starring: Brie Larson, Samuel L Jackson, Jude Law,  Ben Mendelsohn

4/5 stars

What are the influencer academy modules?
  1. Mastery of audio-visual content creation. 
  2. Cinematography, shots and movement.
  3. All aspects of post-production.
  4. Emerging technologies and VFX with AI and CGI.
  5. Understanding of marketing objectives and audience engagement.
  6. Tourism industry knowledge.
  7. Professional ethics.
Nepotism is the name of the game

Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad. 

Profile box

Company name: baraka
Started: July 2020
Founders: Feras Jalbout and Kunal Taneja
Based: Dubai and Bahrain
Sector: FinTech
Initial investment: $150,000
Current staff: 12
Stage: Pre-seed capital raising of $1 million
Investors: Class 5 Global, FJ Labs, IMO Ventures, The Community Fund, VentureSouq, Fox Ventures, Dr Abdulla Elyas (private investment)

SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%202-litre%204-cylinder%20turbo%0D%3Cbr%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E268hp%0D%3Cbr%3E%3Cstrong%3ETorque%3A%20%3C%2Fstrong%3E380Nm%0D%3Cbr%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh208%2C000%0D%3Cbr%3E%3Cstrong%3EOn%20sale%3A%20%3C%2Fstrong%3ENow%0D%3Cbr%3E%3C%2Fp%3E%0A
Tips for taking the metro

- set out well ahead of time

- make sure you have at least Dh15 on you Nol card, as there could be big queues for top-up machines

- enter the right cabin. The train may be too busy to move between carriages once you're on

- don't carry too much luggage and tuck it under a seat to make room for fellow passengers

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

Destroyer

Director: Karyn Kusama

Cast: Nicole Kidman, Toby Kebbell, Sebastian Stan

Rating: 3/5 

UAE release: January 31 

Tonight's Chat on The National

Tonight's Chat is a series of online conversations on The National. The series features a diverse range of celebrities, politicians and business leaders from around the Arab world.

Tonight’s Chat host Ricardo Karam is a renowned author and broadcaster who has previously interviewed Bill Gates, Carlos Ghosn, Andre Agassi and the late Zaha Hadid, among others.

Intellectually curious and thought-provoking, Tonight’s Chat moves the conversation forward.

Facebook | Our website | Instagram

MATCH INFO

Manchester United 1 (Rashford 36')

Liverpool 1 (Lallana 84')

Man of the match: Marcus Rashford (Manchester United)

Traces%20of%20Enayat
%3Cp%3E%3Cstrong%3EAuthor%3A%3C%2Fstrong%3E%20Iman%20Mersal%3Cbr%3E%3Cstrong%3EPublisher%3A%3C%2Fstrong%3E%20And%20Other%20Stories%3Cbr%3E%3Cstrong%3EPages%3A%3C%2Fstrong%3E%20240%3C%2Fp%3E%0A

White hydrogen: Naturally occurring hydrogenChromite: Hard, metallic mineral containing iron oxide and chromium oxideUltramafic rocks: Dark-coloured rocks rich in magnesium or iron with very low silica contentOphiolite: A section of the earth’s crust, which is oceanic in nature that has since been uplifted and exposed on landOlivine: A commonly occurring magnesium iron silicate mineral that derives its name for its olive-green yellow-green colour

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
INFO

Visit www.wtatennis.com for more information

 

The years Ramadan fell in May

1987

1954

1921

1888

JOKE'S%20ON%20YOU
%3Cp%3EGoogle%20wasn't%20new%20to%20busting%20out%20April%20Fool's%20jokes%3A%20before%20the%20Gmail%20%22prank%22%2C%20it%20tricked%20users%20with%20%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Fmentalplex%2F%22%20target%3D%22_blank%22%3Emind-reading%20MentalPlex%20responses%3C%2Fa%3E%20and%20said%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Fpigeonrank%2F%22%20target%3D%22_blank%22%3E%20well-fed%20pigeons%20were%20running%20its%20search%20engine%20operations%3C%2Fa%3E%20.%3C%2Fp%3E%0A%3Cp%3EIn%20subsequent%20years%2C%20they%20announced%20home%20internet%20services%20through%20your%20toilet%20with%20its%20%22%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Ftisp%2Finstall.html%22%20target%3D%22_blank%22%3Epatented%20GFlush%20system%3C%2Fa%3E%22%2C%20made%20us%20believe%20the%20Moon's%20surface%20was%20made%20of%20cheese%20and%20unveiled%20a%20dating%20service%20in%20which%20they%20called%20founders%20Sergey%20Brin%20and%20Larry%20Page%20%22%3Ca%20href%3D%22https%3A%2F%2Farchive.google%2Fromance%2Fpress.html%22%20target%3D%22_blank%22%3EStanford%20PhD%20wannabes%3C%2Fa%3E%20%22.%3C%2Fp%3E%0A%3Cp%3EBut%20Gmail%20was%20all%20too%20real%2C%20purportedly%20inspired%20by%20one%20%E2%80%93%20a%20single%20%E2%80%93%20Google%20user%20complaining%20about%20the%20%22poor%20quality%20of%20existing%20email%20services%22%20and%20born%20%22%3Ca%20href%3D%22https%3A%2F%2Fgooglepress.blogspot.com%2F2004%2F04%2Fgoogle-gets-message-launches-gmail.html%22%20target%3D%22_blank%22%3Emillions%20of%20M%26amp%3BMs%20later%3C%2Fa%3E%22.%3C%2Fp%3E%0A
Updated: March 19, 2022, 5:09 AM