Tunnelling projects take the front seat

22 August 2023

The economic and energy diversification programmes of countries in the Middle East and North Africa have provided an impetus for physical infrastructure projects such as tunnels, which have become emblematic of the region’s transition towards a more interconnected and sustainable future.

In some cases, tunnelling projects in the region also extend beyond their utilitarian functions – in addition to decongesting cities and improving water networks, they embody diplomatic overtones and regional cooperation.

Some of the biggest tunnelling projects in the Middle East have historically been executed in the GCC, especially in Saudi Arabia and the UAE. These two countries also promise the most robust future project pipelines.

Neom tunnels

In line with its strategy of redefining sustainable urban living, the integration of tunnels is key to shaping the landscape at Neom in Saudi Arabia.

Tunnels are core components of the integrated transportation network at Neom's The Line, Oxagon and Trojena developments.

According to regional projects tracker MEED Projects, about $6.9bn-worth of schemes with tunnel components are at the pre-execution and execution phases at Neom.

Tunnel projects worth over $4.6bn are in the execution phase. These include the backbone infrastructure tunnels for The Line project, which involve constructing two railway tunnels in parallel using the drill-and-blast method, one for passengers and the other for goods.

In June 2022, Neom awarded $2.7bn-worth of main contracts to the joint venture of Shibh al-Jazira Contracting, China State Construction Engineering and FCC Construction for lots two and three of this scheme.

A separate contract worth about $1.8bn was awarded by Neom for lots four and five to a team of Archirodon, Samsung Engineering and Hyundai Engineering.

The pipeline of projects with tunnel components at Neom is worth about $2.3bn. Some of the major upcoming projects include the time-travel tunnel and funicular railway at Trojena and a package of works for the Spine railway network at The Line. The main contract bids for both packages are in the evaluation phase.

Other upcoming projects include the Spine's desert coastal west cut-and-cover tunnels for The Line, which are under design, and packages one and two of the delta junction tunnel at Oxagon. Neom expects to receive the bids for both packages by 27 August.

Dubai Deep Tunnels Portfolio

In Dubai, meanwhile, the Deep Tunnels Portfolio includes a series of interconnected deep sewage tunnels and associated facilities. The project involves the construction of two sets of deep tunnels terminating at two pump stations located at sewerage treatment plants (STPs) in Warsan and Jebel Ali.

A conventional sewage and drainage collection system and STPs will be built in Hatta.

First announced in 2015, the Dubai Deep Tunnels Portfolio project has faced delays over the years. The tender for consultancy services was first issued in 2015 and was awarded the following year to US-headquartered Parsons.

In June 2017, Dubai Municipality appointed Dutch consulting firm KPMG to assist with preparing the project under a public-private partnership (PPP) model instead of the conventional engineering, procurement and construction model.

There was no significant progress on the project after Dubai Municipality conducted a geotechnical investigation in late 2017.

This changed in June of this year, however, when Dubai’s Executive Council approved the project and said it would require an investment of about AED80bn ($22bn).

It added that the project has been designed to serve the needs of the Dubai population for the next 100 years, in alignment with the Dubai Economic Agenda D33 and the Dubai Urban Plan 2040.

In August, Dubai Municipality invited firms to express interest in bidding for the contract to provide project management consultancy services for the scheme. It expects to receive prequalification applications by 25 August.

Jeddah stormwater system

Jeddah Municipality is also taking steps to improve the city’s water infrastructure, and is investing in stormwater drainage and management systems.

The latest project under this programme is the King Abdullah Road-Falasteen Road (Kafa) tunnel, which is being developed in two phases. Phase one involves the construction of two main storage tunnels, one 5.3 kilometres (km) long and the other 3.4km long.

The scope of phase two includes constructing a terminal pumping station, a marine outfall and all necessary online and offline shafts.

In March, Jeddah Municipality invited contractors to prequalify for the contract to build the tunnels. It is understood the client received responses to the request for qualifications in June.

US-based Aecom is the consultant for the project.

Morocco's undersea rail link

In June this year, the Spanish government revived the Morocco-to-Spain undersea rail link project after allocating about $2.5m for a renewed design study. 

The project was launched in 2003 but was put on hold after the 2008 financial crisis. It has undergone several rounds of feasibility studies but remains in the study stage after nearly two decades of funding-linked delays.

The plans involve a double-rail track and additional service line stretching 38.5km between Tarifa in Spain and Tangier in Morocco. A 28km section will run under the Mediterranean Sea at a maximum depth of 475 metres.

The maximum depth of the tunnels will be 300 metres. Each single-track tunnel will have an inner diameter of 7.9 metres, while the service gallery will be 6 metres in diameter.

The two countries are developing the project jointly through Morocco’s National Society for Strait of Gibraltar Studies and the Sociedad Espanola de Estudios para the Comunicacion Fija a Traves del Estrecho de Gibraltar.

In 2006, Swiss engineering company Lombardi Engineering was selected to design the tunnel and the preliminary studies for the project were completed two years later.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11087697/main.jpg
Yasir Iqbal
Related Articles
  • Rua Al Madinah seeks construction partners

    14 May 2024

    Saudi Arabia's Rua Al Madinah, the Public Investment Fund (PIF) subsidiary tasked with Medina's tourism and cultural development, has revealed that construction work is under way on the main tunnel that will take all incoming traffic towards the Harem area. 

    Extensive works are also ongoing to redevelop the airport road and modernise the city's wider transportation network. 

    “There are significant opportunities for contractors and partners,” said Abdulsalem Alharbi, projects delivery director, Rua Al Madinah, at the MEED Giga Projects event in Riyadh on 13 May. 

    “We are looking for capable service providers and strategic partners to support the large-scale infrastructure and construction works.”

    Alharbi said five packages of residential towers – comprising over 120 towers total – are currently in various stages of design and tender. 

    The superblock 5 package includes 18 towers and is already on the market, while superblock 4 involving 19 towers is in the design phase.

    Packages District 9 and District 10, consisting of 35 towers and 46 towers respectively, are seeking partners to take on roles in development. 

    Alharbi also highlighted several investment opportunities being developed to support the growing tourism sector, including a central kitchen, cold storage warehouse, commercial laundry and staff accommodation facilities.

    “This represents a major chance for local and international companies to participate in the redevelopment of Medina,” he added.

    Project background

    Crown Prince Mohammed bin Salman bin Abdulaziz Al Saud inaugurated the infrastructure works and unveiled the masterplan for the Rua Al Madinah development in August 2022.

    Before this, US-based Hill International was awarded a contract in 2021 for the project management of road works at the Madinah Central Area (MCA).

    In June 2022, a local media report cited China Railway 18th Bureau as having won a contract to build the Medina tunnel. 

    Valued at $970m, the construction of the tunnel was expected to be completed within 42 months. The tunnel work includes the building of the AH tunnel, Ali Bin Abi Talib tunnel, airport tunnel and related projects, including a pedestrian bridge.

    Rua Al Madinah Holding Company CEO Ahmed Al Juhani told MEED in February that construction work on the Ali Bin Abi Talib road, has been completed, making it the first tunnel to be finished as part of the Rua Al Madinah project. 

    In February 2023, US-based Parsons won a $15m contract to provide construction project management consultancy and contract administration services (PMCM) for the project. The US consultancy firm will manage the main infrastructure works, including the tunnel, road and utility works.

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11766934/main.jpg
    Sarah Rizvi
  • Emirates Group posts $5.1bn profit

    14 May 2024

    Emirates Group, comprising Emirates Airline and Dnata, has posted a record profit of AED18.7bn ($5.1bn) in its latest fiscal year ending 31 March, up 71% compared to a AED10.9bn profit for last year.

    The group’s revenue stood at AED137.3bn, an increase of 15% over last year’s results.

    Its cash balance was AED47.1bn, the highest ever reported and an 11% increase from last year.

    According to its annual report, the group's profits for the last two years reached AED29.6bn, which has surpassed pandemic losses of AED25.9bn in 2020-22.

    The group has declared a dividend of AED4bn to its owner, the Investment Corporation of Dubai.

    Emirates Group chairman and CEO, Sheikh Ahmed Bin Saeed Al Maktoum, attributed the company's record performance to Dubai’s progressive policies.

    He added that profits enable further investments in new aircraft, facilities and equipment, technology, products and services, and staff.

    Business performance

    Emirates reported a new record profit of AED17.2bn, up 63% from AED10.6bn last year.

    The airline's revenue rose 13% to AED121.2bn while capacity increased by 20% to 57.7 billion available tonne-kilometres.

    The group's cargo and logistics arm, Dnata, reported a profit of AED1.4bn, up more than four-fold compared to its AED331m profit last year.

    Revenue increased 29% to hit a new record high of AED19.2bn, reflecting increased customer flight activity and travel demand across its UAE and worldwide business divisions. 

    Investments and outlook

    In 2023-24, the group collectively invested AED8.8bn in new aircraft, facilities, equipment, companies and the latest technologies to support its growth plans.   

    In line with this, Emirates expects to receive delivery of 10 new A350 aircraft in 2024-25.

    The group’s total workforce grew by 10% to 112,406 employees, its largest ever.

    In terms of environment, social and governance (ESG) initiatives, in 2023-24, Emirates signed new supply agreements to uplift sustainable aviation fuel (SAF) at its Dubai hub for the first time, and also in Amsterdam and Singapore.

    The airline operated the first A380 demonstration flight using 100% SAF in one engine, collecting data to support industry efforts to enable a future of 100% SAF flying.

    The business outlook is positive and the group expects customer demand for air transport and travel to remain strong in the coming months.

    "As always, we will keep a close watch on costs and external factors such as oil prices, currency fluctuations and volatile environments caused by socio-political changes," said Sheikh Ahmed.

    "Our business model has been tested before, and I am confident in our resilience and ability to respond quickly to opportunities and challenges.”

    Sheikh Ahmed affirmed the Dubai government's plan to start the next phase of expansion at Al Maktoum International airport, which will eventually be the new hub for Emirates' and Dnata’s operations.

    "This AED128bn investment will significantly expand and enhance Dubai’s aviation and logistics infrastructure, supporting the city’s growth, and Emirates’ and Dnata’s growth," he added.


    MEED's April 2024 special report on the UAE includes:

    > COMMENT: UAE rides high on non-oil boom
    > GVT & ECONOMY: Non-oil activity underpins UAE economy

    > BANKING: UAE banks seize the moment
    > UPSTREAM: Adnoc oil and gas project spending sees steep uptick
    > DOWNSTREAM: UAE builds its downstream and chemical sectors

    > POWER: UAE marks successful power project deliveries
    > WATER: Dubai tunnels project dominates UAE pipeline
    > DUBAI CONSTRUCTION: Dubai real estate boosts construction sector

    > ABU DHABI CONSTRUCTION: Abu Dhabi makes major construction investments

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11766365/main13521409.jpg
    Jennifer Aguinaldo
  • Amaala first phase to complete by 2027

    14 May 2024

    Follow exclusive coverage from MEED's Saudi Giga Projects summit today on meed.com

    Register for MEED's guest programme

     

    The first phase of the Red Sea Project in Saudi Arabia is due for completion in 2025 while the first phase of Amaala will be completed by 2027.

    Ben Edwards, group head of cost, commercial and procurement, Red Sea Global (RSG), confirmed the timelines at the MEED Saudi Giga Projects event in Riyadh on 13 May.

    "The whole scheme is expected to be completed by 2030,” Edwards said.

    Amaala will deliver 1,945 hotel keys and 430 residential units by 2026. One island and two coastal locations will be further developed by 2030.

    Edwards added: “We opened the Six Senses resort in November last year, St Regis opened in January and the Thuwal resort will be ready this year.”

    Amaala progress

    Amaala is a coastal development that covers an area of about 2,500 square kilometres.

    Amaala previously planned the project. In October 2022, Amaala merged with The Red Sea Development Company to form RSG, which is now implementing the project.

    The scheme's first phase, which focuses on the Triple Bay masterplan, will be completed in 2027. 

    The total development will include 27 hotels with a combined 37,000 keys.

    RSG has adopted a construction management approach to deliver its projects. 

    Schemes are divided into individual trade works packages procured by the developer rather than being awarded to a series of main contractors. There are typically about 20 work packages for each project.


    MEED's April 2024 special report on Saudi Arabia includes:

    > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
    > BANKING: Saudi lenders gear up for corporate growth
    > UPSTREAM: Aramco spending drawdown to jolt oil projects
    > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

    > POWER: Riyadh to sustain power spending
    > WATER: Growth inevitable for the Saudi water sector
    > CONSTRUCTION: Saudi gigaprojects propel construction sector
    > TRANSPORT: Saudi Arabia’s transport sector offers prospects

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11765173/main5026.jpg
    Sarah Rizvi
  • Soudah seeks contractors for mountain resort

    14 May 2024

    Follow exclusive coverage from MEED's Saudi Giga Projects summit today on meed.com

    Register for MEED's guest programme 

     

    Saudi Arabia's Soudah Development is preparing to start construction work on its Soudah Peaks development after its masterplan was approved last year.

    "We have approval to develop across 627 square metres, although we will only use a small fraction of that to protect the natural environment," Soudah Development’s chief development officer, Daniel McBrearty, told MEED’s Saudi Giga Projects event in Riyadh on 13 May.

    Situated 3,015 metres above sea level, the project is located in a mountainous area in Saudi Arabia's Asir region. 

    “The masterplan for the park took some time to come to fruition due to its scale. And we are now looking for contractors – both large and small speciality groups," said McBrearty.

    “These contractors must understand the scope of work and be familiar with constructing low-rise buildings common in this area, such as those made from natural materials.”

    McBrearty added that the long timeline allows contractors to invest with visibility of continued work packages. "This project showcases what makes Saudi Arabia unique, as local companies see long-term opportunities from the sustained multi-phase construction work.”

    To be constructed over the next three years, phase one will include nine hotels with 940 rooms, as well as 250 homes and 20,000 square metres of commercial space. 

    Future phases, to be executed over 10 years, will expand the resort with more amenities. 

    The masterplan includes six distinct development zones, each featuring different elements to attract diverse visitors. 

    An investment of SR11bn ($3bn) has been planned to develop tourism infrastructure and attractions in the Asir region in the southwest of the kingdom.


    MEED's April 2024 special report on Saudi Arabia includes:

    > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
    > BANKING: Saudi lenders gear up for corporate growth
    > UPSTREAM: Aramco spending drawdown to jolt oil projects
    > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

    > POWER: Riyadh to sustain power spending
    > WATER: Growth inevitable for the Saudi water sector
    > CONSTRUCTION: Saudi gigaprojects propel construction sector
    > TRANSPORT: Saudi Arabia’s transport sector offers prospects

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11765171/main5539.jpg
    Sarah Rizvi
  • Jeddah Al Balad project gets under way

    14 May 2024

    Follow exclusive coverage from MEED's Saudi Giga Projects summit today on meed.com

    Register for MEED's guest programme 

     

    Saudi Arabia’s Al Balad Development Company (BDC), which is backed by the Public Investment Fund (PIF), is working to revitalise Jeddah’s historic district and transform it into a heritage and tourism destination.

    “We are looking to tackle the urban challenges in Jeddah,” said Sean O’Sullivan, general manager for projects department – Jeddah Historical District at Saudi Arabia's Culture Ministry, on 13 May at the MEED Saudi Giga Projects event in Riyadh.

    The project’s goal is to preserve the heritage and culture of Jeddah.

    BDC has been tasked with revitalising the historic areas of Jeddah to turn them into an economic hub and global cultural, heritage and tourism destination.

    The company plans to achieve these goals by upgrading the district’s infrastructure, overseeing the restoration of historic buildings in Al Balad and developing service facilities and recreational, residential, commercial, hotel and office spaces.

    O'Sullivan said the Jeddah Historical District is working closely with Unesco to restore more buildings in the city and turn them into commercial assets.

    Project background

    In 2021, Crown Prince Mohammed Bin Salman Bin Abdulaziz Al Saud announced plans to transform the Al Balad area in Jeddah into an urban space for commercial and cultural activities.

    The PIF established BDC in October 2023 in line with this plan.

    The overall project development area is about 2.5 square kilometres. The development will have a total built-up area of 3.7 million square metres (sq m). This includes 9,300 residential units, 1,800 hotel units and about 1.3 million sq m of commercial and office space.

    BDC intends to engage with the private sector and specialists to develop the area’s infrastructure.


    MEED's April 2024 special report on Saudi Arabia includes:

    > GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
    > BANKING: Saudi lenders gear up for corporate growth
    > UPSTREAM: Aramco spending drawdown to jolt oil projects
    > DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector

    > POWER: Riyadh to sustain power spending
    > WATER: Growth inevitable for the Saudi water sector
    > CONSTRUCTION: Saudi gigaprojects propel construction sector
    > TRANSPORT: Saudi Arabia’s transport sector offers prospects

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/11765058/main1147.jpg
    Yasir Iqbal