Qatar's $25bn rail project

With the Dubai Metro proving to be a massive success, it looks like other emirates in the UAE are following Dubai's lead. Last month, Qatar and Bahrain signed a $25 billion (17 billion euro) contract with German rail operator Deutsche Bahn to build rail and underground lines in the regions, but today is was announced the project would be finished by 2022.

Deutsche Bahn (DB) chief Ruediger Grube, along with German Transport Minister Peter Ramsauer travelled to the Qatar capital Doha, to sign the contracts with Qatari Prime Minister Sheikh Hamad bin Jassim al-Thani, telling reporters they were 'proud' to have been chosen for the scheme.

"This ambitious infrastructure project is beneficial in this difficult economic environment, and it will also help us to create jobs here (in Qatar)," said Grube.

It is said to be one of the biggest-ever foreign deals for German industry. Grube went on to say that the Qatar project would open up "great opportunities" to do business across the region, as "over the next two decades hundreds of billions of euros would be invested in infrastructure."

In Doha, Deutsche Bhan will design and build a four line, 300km-long metro system with 98 stations and a service to the international airport. A high speed train line to neighbouring Bahrain is also planned, with trains capable of reaching speeds of 350km/h (220mph).

A large portion of the project, including the metro, is expected to be completed by 2022 - the year Qatar is aiming to host the FIFA World Cup.

Connecting the region

There are also plans to build a connection from Bahrain to Saudi Arabia via a 40-kilometer causeway, set to be one of the world's longest.

Speaking to reporters last month, German Transportation Minister Peter said Deutsche Bahn would be involved in all facets of the project, from "planning the transport system, to building the infrastructure and delivering and servicing the trains."

"Today we opened an important door together with our partners in Qatar," Ramsauer said.

For the first four years of the project, Deutsche Bahn will provide the main leadership, with the assistance of 50 engineers and managers from Germany who will relocate to Qatar to aid in the development.

The network will integrate Qatar's east coast rail link, a passenger and freight railway line, and a high-speed link between the new Doha international airport and the city's centre. The network will also connect to Bahrain via the Qatar-Bahrain causeway, a freight rail link based on the Gulf Arab rail network and Doha Expressway studies, a comprehensive Doha Metro Network, based on the Qatar Transport Master Plan and multiple light rail people mover networks in Lusail, Education City and West Bay.

The contract with Deutsche Bahn also states that a new company called the Qatar Railways Development Company will be created. The company will be 49 percent owned by Deutsche Bahn and 51 percent by Qatari Diar, Qatar's state-owned infrastructure and property development firm.

It is hoped that Deutsche Bahn's success in Qatar will lead to other European companies securing lucrative contracts in the region. The US$3.4 billion Dubai Metro contract had been awarded to a consortium of Japanese companies including Mitsubishi Heavy Industries, Obayashi Corporation and the Kajima Corporation.

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