Law SIMMONS & SIMMONS
ALTERNATIVE ROUTE PROPOSED ROUTE
• Rolling stock: The project clearly also gives rise to opportunities for those in the rolling stock sector as there will be requirements for both passenger and freight rolling stock. It is currently intended that this will be met by high- speed diesel trains.
• Technology: As this will be an entirely new network, member states may require state-of-the art technology (along with the best of tried-and-tested technology from countries like the UK).
• Ticketing and fares: The network is intended to carry passenger as well as freight traffic, so member states will need to develop and implement ticketing and fares systems and associated IT systems.
• Operation and maintenance: There will also be opportunities arising later in the project in connection with operation and maintenance. Although the precise operating models are not yet known, it is likely that member states will opt for their networks to be run by the private sector on a concessions basis.
Challenges
Whilst the project undoubtedly presents huge potential opportunities, it also presents many challenges, which include:
• No existing regulatory / institutional framework: As this will be a first-
time rail network for all of the GCC member states except Saudi Arabia, a key challenge is the lack of existing regulatory and institutional frameworks for rail in these states. Each state will need to put in place the necessary laws and regulations and set up bodies and institutions to implement and monitor these in order to underpin the developing rail industry.
• Cross-border network: A related challenge is that, as the GCC railway is intended to be a cross-border network linking several different states, there will need to be commonality between the legal, regulatory and institutional frameworks being developed in the different states in order to allow safe and uninterrupted through-running of trains. Examples of the types of areas which will need to be standardised include approaches to track, station and depot access, timetabling and possession planning, safety, environmental standards and acceptance and approval processes. A GCC Railway Authority is being planned to oversee and co-ordinate aspects such as these.
• Technical interoperability: The current lack of a GCC Railway Authority gives rise to the risk that the technical aspects will not be properly co-ordinated. The six states are currently progressing their own
plans to meet their own needs but there needs to be agreement on common technical standards and specifications in order to ensure interoperability of the network. Areas in which there will need to be compatibility include gauging, vehicle design, train speeds, braking systems and signalling systems, to name but a few.
• Environmental challenges: From the technical perspective, there are also many challenges associated with the nature of the environment which the GCC railway will cross, including in particular extremes of temperature and sunlight and the presence of sand and dust which could build up on rails.
• Commercial challenges: As rail is a fairly new mode of transport in the region, this also presents commercial challenges to investors because rail will need to compete with more established modes such as road and air. This is compounded by the fact that there is a lack of other types of public transport systems in the region from which demand forecasts can be made.
The project clearly has its challenges. But, these can also be seen as opportunities - to bring to bear the UK rail’s world-class knowledge and expertise to provide solutions and to be a part of this developing new rail market.
RailCONNECT 29
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