Italian, UAE consortium wins $900m rail contract

Etihad Rail, the master developer of the UAE's national railway, on Wednesday said it has awarded an AED3.3bn ($900m) contract for the first phase of the network. The civil and track works contract was awarded to a consortium comprising Italy's Saipem, Tecnimont and UAE-based Dodsal Engineering and Construction, it said in a statement. The contract is for the first stage of the network that will link the Western Region cities of Habshan and Ruwais by 2013 and then Shah and Habshan by 2014. The award comprises the design, procurement and construction of the railway infrastructure, in addition to the testing and commissioning of all assets relating to the completion of the first phase of the project, Etihad Rail said. It also includes the earth works and track's site grading, bridge structures, communication systems, and the development of a depot at Mirfa. Earlier this week, Etihad Rail signed an agreement with ADNOC for transporting up to seven million tonnes of granulated sulphur annually. Richard Bowker, CEO of Etihad Rail, said: "This milestone contract truly marks the start of the realisation of a national railway network on the ground and beyond the planning stages. "With this key contract in place and with our signed agreement with ADNOC this week, our vision is becoming a reality and we're getting closer and closer to seeing the first trains run in 2013." Once complete, Etihad Rail's AED40bn 1,200km route network will connect urban and remote communities throughout the country. The network will also form a vital part of the GCC Railway Network - linking the UAE to Saudi Arabia via Ghweifat in the west and Oman via Al Ain in the east.