Railway and Port Connections Across Six GCC Countries
Phased Completion Targeted by 2030
Opportunities for Korean Companies in Logistics Infrastructure Construction
As a massive railway construction project spanning a total length of 2,177 kilometers accelerates in the Middle East, opportunities for Korean companies to enter the market are also expanding.
The Korea Trade-Investment Promotion Agency (KOTRA) announced in its report, "Middle East Logistics Hub: The Resurgence of the GCC Railway Project," published on December 30, that the six member states of the Gulf Cooperation Council (GCC) are speeding up the resumption of the GCC railway construction project.
According to the report, jointly published by five KOTRA trade offices in the Middle East, not only railway construction but also a variety of land logistics infrastructure projects are underway in the six GCC countries. The GCC is a regional consultative body in the Middle East comprising Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Oman, and Bahrain.
Among these, the "GCC Railway Project" is a large-scale initiative that aims to connect the six GCC countries by rail, as well as link major ports and airports, transforming the Middle East's traditionally maritime-centered logistics landscape into a multimodal logistics system based on land railways. Initially approved in 2009 with a target completion date of 2018, the project was delayed due to the financial crisis and sharp fluctuations in oil prices. However, with the official relaunch at the end of 2021 and the approval of the establishment of the "GCC Rail Authority," the project is now underway with a phased completion goal set for 2030.
Since the launch of the GCC Common Market in 2008, GCC countries have recognized that the existing maritime and road networks would not be able to accommodate future increases in population and cargo volume. To promote intra-regional exchanges, they initiated the GCC railway project. The plan is to evolve the existing port-centered logistics into a multimodal logistics system connected to railways and airports.
Once the GCC railway network is completed, it is expected to reduce dependence on maritime transport, strengthen connectivity with land and air logistics infrastructure, increase logistics efficiency, reduce travel time and costs, reinforce regional cohesion, and stimulate related industries such as tourism.
This report also includes information on major logistics infrastructure projects in each GCC country, in addition to the GCC railway. Notable examples include the Etihad high-speed railway connecting Dubai and Abu Dhabi in just 30 minutes; the Landbridge project, which links the east and west coasts of Saudi Arabia; the expansion of the Qatar Metro; the Hafit Railway in Oman; Kuwait's Mubarak Al-Kabeer New Port and International Airport; and Bahrain's King Hamad Causeway maritime bridge project.
There are expectations that, once these large-scale logistics infrastructure projects are completed, they will have a significant impact on the Middle East’s logistics landscape and the development of related industries, opening up business opportunities for Korean companies during the project implementation process. Opportunities for exports and cooperation are expected to grow in fields such as railway construction, the supply of equipment and raw materials, and smart logistics solutions. To succeed in participating in these projects, it is also crucial to carefully consider competition with global companies, differing localization requirements and bidding procedures by country, and risk management for long-term projects.
Kim Byungho, Head of KOTRA’s Middle East Regional Headquarters, emphasized, "As GCC countries accelerate the construction of multimodal logistics infrastructure connecting railways, ports, and airports, opportunities are growing for Korean companies thanks to their technological capabilities, experience in Middle Eastern markets, and the activation of Korea-Middle East economic cooperation. We will do our utmost to support companies in identifying domestic and international partners and developing localization strategies so that they can seize diverse opportunities not only in construction but also across the entire logistics infrastructure solutions sector."
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