Trains will complement trucks in Mideast petchems delivery: SAR CEO

DUBAI (ICIS)–Trains will likely complement trucks in the delivery of petrochemicals in the Middle East as the region expands its capacity, CEO of state-owned Saudi Railway Company (SAR) Dr Rumaih Al Rumaih said on Wednesday.

“Trains are not going to replace trucks. Rail is going to complement other means of transportation. Rail is relatively new in the region. With upcoming petrochemical expansions in the region, we cannot just stay on the roads,” according to Dr Rumaih Al Rumaih.

He was speaking at the 6th Gulf Petrochemical and Chemical Association (GPCA) Supply Chain Conference in Dubai.

Gulf Cooperation Council (GCC) countries are actively expanding their petrochemical capacities.

The GCC consists of Qatar, Saudi Arabia, the United Arab Emirates (UAE), Kuwait, Oman and Bahrain. 

The Borouge III project due to come onstream in 2014 in Abu Dhabi will raise its olefins and polyolefins capacity by 2.5m tonnes/year.

Meanwhile, Sadara Chemical Company is on track to complete the construction of its chemical complex in Jubail Industrial City next year.

Comprising 26 manufacturing units, the Sadara complex is expected to produce more than 3m tonnes/year of high value-added chemical products and performance plastics.

Sadara is a joint venture between Saudi Aramco and US petrochemicals major Dow Chemical.

Dr Rumaih said with such petrochemical expansions, trains will give producers an opportunity to ship more products at one time, but at reduced fuel consumption level.

“One train is [equivalent to] 600 trucks. There is consumption advantage as well. Saving of fuel consumption using trains [as compared to trucks] is 70 percent,” Dr Rumaih added.

He said another advantage of rail is reliability and safety.

“There is a reliable and scheduled service with trains. There is also reduced impact [in terms of safety] from congested roads. Rail is also one of the safest means of transportation as compared to trucks.”

However, Dr Rumaih said trains do not “go door to door”, so the use of trucks will still be needed to make deliveries to and from petrochemical plants and storage areas.

The gulf railway projects, planned to link the GCC countries, with an estimated cost of $200bn, is expected to give a boost to petrochemicals trade in the region, the GPCA said in April.

The GCC railway network project is expected to be completed by 2018, and talks are underway to connect Jordan and Iraq once the GCC states are linked.