Transport today in UAE

1. TRANSPORT
TADAY
2.2

2. 1.Introduction:
As the economies grow, so does the
transport activity which is also a key
component of economic development and
human welfare. There will be an increase
in transport activities in the near future
across the world as the economic fuels
transport demand and availability are main
drivers of development and facilitating
specialization and trade. UAE is also
attached with such activities since the world is a global village and UAE is
an important country in development corridor of the world.
The main purpose of transportation is to reduce distance which is shaped
by variety of human and physical constraints such as time, administrative
divisions, topography, infrastructure, cost, capacity of modes, and the
nature of material to be transported. These without the understanding of
the geography and there will be no geography without transportation.
Transportation plays a lead role in
structuring and organizing space and
territories, which may vary according to
the level of development. UAE has
recognized the potential for proper
development of its cities and economic
development contribution factors. The
cities are planned according to its
expected population growth and needs
a layered transportation network. This
proposed vision of creating a transport hub for the cities of UAE contains a
high-speed rail, local metro rail, freight rail, a surface network of buses, and
a fine grain of interconnected streets. Walkways are also important for a

3. sustainable city that will enhance
the tendency of people to walk,
especially for short distances
(Library of Congress – Federal
Research Division, 2007).
One of the main pillars of the
economic development of the
UAE is the transportation and
logistics sector. It encompasses a wide range of activities. Broadly, there
are three types of services provided by this sector in UAE; firstly, transport
services, including air freight, express delivery services, airlines, marine
transport, and road and rail transport; secondly, transport infrastructure
services, including airports, marine ports, highways and railways; and
thirdly, logistical services, including freight forwarders, freight brokers, and
3rd-party logistics providers. The industry is highly cyclical; fluctuations in
commercial transport demand tend to be highly correlated with changes in
economic growth. In addition, sector demand is heavily influenced by the
volume and direction of international trade, and the level of globalization.
As the image of UAE and its world class cities are increasing day by day,
so does the business
activities with some of the
major countries around the
world such as USA, EU, India,
China and many more. The
later sections of this chapter
will highlight some of the past
activities carried out in UAE
and will proudly states the
development story of the country so far and thus provide you the glimpse of
the future activities taken by the government and understanding their vision
for the next decade.

4. 2.2) Transportation in the present:
The UAE’s modern
internal transport
system was developed
primarily in the 1960s
and 1970s, with the
construction of main
roads to link the major
cities. Maritime trade is
a mainstay of the
economy because of
the UAE’s strategic
location on the Persian
Gulf, and Dubai’s ports
at Mina Rashid and
Mina Jabel Ali (the
largest man-made port
in the world) are

5. considered the UAE’s premier maritime
facilities. The road network now is well
advanced in urban areas, and a light
rail system is also under construction
in Dubai City. The UAE has currently
six international airports, with a
seventh in development, and the
planned Dh28.8 billion investments in
airport infrastructure expansion over
the next few years could increase
passenger traffic exponentially
(Emirates 24x7 News, 2013).

6. According to United Nations Framework
Convention on Climate Change (UNFCCC,
2006) published report, UAE has 1,088
kilometres of paved roadways, including 253
kilometres of expressways. In an effort to
reduce growing traffic congestion, 24 roads,
bridge, tunnel, and interchange projects were
started in 2006 and tolls were introduced by Dubai Roads and Transport
Authority in July 2007 on its main roadway, Sheikh Zayed Road. The
Sharjah government also has announced plans to expand the major
highways that link Sharjah and Dubai. In a show of regional unity, and of
greater political and diplomatic than economic
consequence, the UAE and Qatar have
announced to build a US$1.8 billion causeway
linking the two countries. The causeway project
will be part of a network that eventually will link
four of the six Gulf Cooperation Council states by
one road and will be a landmark for transportation
of goods and people across the GCC.

7. According to the UAE government, 15 commercial ports (including oil
terminals) currently serve the country. Located in the city of Dubai, Mina
Rashid, completed in 1972, is the leading port of the Gulf region. It has
modern facilities to handle almost all types of commercial and passenger
shipping, including roll-on-roll-off containers. Also located in Dubai, Mina
Jebel Ali, completed in 1979, is the largest port in the country and the
largest man-made harbour in the world. It deals primarily in bulk cargo and
industrial material for the Mina Jebel Ali Free Zone, an international
investment haven.

8. According to Container Terminal, Dubai Port
World (2015), US$1.5 billion expansion
project at Mina Jabel Ali operational in July
2007 and was completed in 2008. All phases
of the project are accounted for completion by
2020. The expansion increased storage-
handling capacity from 7.6 million 20-foot-equivalent units in 2005 and 8.9
million 20-foot-equivalent units in 2006 to 14–15 million 20-foot-equivalent
units by 2008. Expansions currently underway at the Port will bring total
handling capacity to 22.1 million TEU by 2018. Jebel Ali port has been
voted “Best Seaport in the Middle East” for
20 consecutive years and is ranked the 9th
largest container port worldwide. In the year
2006, Abu Dhabi government announced
plans to build a major new port, Khalifa
Port, at Al Taweelah, the first phase of
which costs approximately US$2.2 billion.
Air transport is crucial for the distribution of high value to weight products.
Air freight in UAE may only account for 0.5% of the tonnage of global trade
with the rest of the world, but in value terms it makes up around 34.6% of
the total. Shippers pay airlines AED 24.0 billion annually to carry 3 million
tonnes of freight to and from the UAE. The benefit to shippers, in excess of
this expenditure, is estimated as AED 10.0 billion. Based on the share of
exports in total merchandise trade, UAE shippers receive over half of this
benefit (AED 5.6 billion). The fastest growing international routes will be
between the Middle East and Asia; at 6.2% per
year and the Middle East especially UAE is
forecast to be the fastest growing region over
the forecast period with a CAGR of 4.7%. By
2018, UAE will be one of the ten largest
international freight markets with a capacity of
4,974,000 tonnes (IATA, 2014).

9. Salient Features
 The UAE’s overall logistics market grew to approximately Dh33 billion (US$9 billion) in the year
2012*.
 Bank loans allocated to the transport and storage sectors reached their highest level in 2012
of nearly US$27.8 billion*.
 The UAE has over 20 ports, ranging from state-of-the-art oil terminals, world-class industrial
ports and container-handling facilities, to smaller wharves that accommodate dhows*.
 Abu Dhabi received a boost with operations commencing in September 2012 at its newest port,
Khalifa Port Container Terminal, giving the emirate one of the largest and most modern
maritime cargo handling facilities in the region*.
 In February 2012, the Department of Transport invited tenders for the construction of a new
Dh2 billion (US$545 million) highway between Dubai and Abu Dhabi, as a means of relieving
pressure on the main E11 highway between the two emirates*.
 The RTA has set a target of 30 per cent of the population using public transport in 2020,
compared with a figure of just 12 per cent in 2010*.
 The United States, China and the United Arab Emirates (UAE) will each be adding more than 1
million additional tonnes of freight by 2018 compared to today. The UAE will have replaced
Germany as the third largest market**.
 The fastest growing international routes will be between the Middle East and Asia, at 6.2% per
year**.