The 11-billion-dirham ($3 billion) railway network project linking the United Arab Emirates and Oman promises to mark a new beginning not just for linking the two countries but also as an efficient and relatively cleaner mode of transport in the region. The dependence on air and road transport will lessen. More importantly, it make travel easy for people on both sides as the railway diversifies and expands to other parts of the two countries.

The deal has been signed between Oman and Etihad Rail Company, and Mubadala Investment Company. The railway has been a catalyst of industrial development in Europe, America, Japan, China and India. But when it began the railways used coal as the energy source, and then moved to diesel much later. But now most railway networks are dependent on electricity. Of course, there is the big issue how electricity is generated, whether it is through coal, hydro or natural gas. But it does seem that rail transport is much more people friendly, and it is also a more economic mode of transport for freight. And the freight traffic generates enough revenue too to sustain the network. It would also be possible to extend the railway network to the Gulf Cooperation Council (GCC) countries in the future. This will also increase the movement of people not just for work but also boost tourism.

The potential train speeds of 200 kilometres per hour (kmph) for passenger trains and 120 kmph for freight trains makes movement of people and goods smooth and attractive. The travel time between Sohar in Oman and Abu Dhabi will take 100 minutes, and 45 minutes between Sohar and Al Ain. It holds out the possibility that the carbon footprint generated by air and road travel between the two countries would be reduced considerably. It would also make travel for people quite comfortable and enjoyable. The two governments recognise the huge potential of closer economic cooperation that the rail network linking the two countries would bring about.

Though the UAE and Oman will be creating the railway network much later than many others, they have the advantage of using the latest technology which is efficient, safe and economical. And they will be in a position to implement the project at a faster pace than it had taken railways to develop in other countries. The UAE-Oman rail project is also a good example of strengthening bilateral relations and how it is possible to conceive and implement the project across national borders with ease because of the friendly relations between the two governments. The rail projects as part of a growing and expanding economy have always been within national borders and it is rarely that it is extended to projects between countries.

And the interesting aspect of the project is that it is being financially supported by the Mubadala Investment Company instead of the two governments directly involved in spending money on it. This makes it a self-sufficient project run on principles of fiscal efficiency and corporate good practice.

Ultimately, the rail sector should be able to stand on its own legs and evolve a revenue model that is self-sustaining without depending on governmental aid as in India, or by private companies seeking profit as it is done in the United States. The caution is necessary to rein in possible speculation in a sector that is on the verge of taking off.

Etihad Rail Company is a government-owned corporation and it has to operate in efficient ways. The UAE-Oman rail link is a good start in the region’s transport sector and holds huge potential for making social and economic links between peoples of the two countries, and a promise of a similar plan for other countries in the region.