Dubai awards VDL with Dh1.9bn bus contract



VDL, a Dutch bus manufacturer, says it will tender for business in Abu Dhabi after announcing a 518-bus deal worth Dh1.9 billion (US$517.7m) with the Dubai Roads and Transport Authority (RTA) Tuesday. The deal, which includes an eight-year maintenance contract, is the firm's largest order and its first in the Middle East, giving it a foothold in a region experiencing a boom in public transport projects. "The global economic downturn has shrunk opportunities in developed markets," said Wim van der Leegte, the president and director of VDL Group, based in Eindhoven, the Netherlands. "We are excited about our entry into the Middle East." Dubai and Abu Dhabi are embarking on comprehensive plans to develop their own mass transit systems including metros, trams, buses, water taxis, ferries and new roads and bridges. In Dubai, the RTA operates between 600 and 700 buses and expects to increase this to 2,000 by the time the metro's Red Line opens in September. In Abu Dhabi, the Department of Transport expects to have 1,360 buses on the road by the end of next year, up from several hundred currently. VDL would begin delivering the first of its Citea buses to the RTA next week at a rate of several hundred a month, officials said. The company's local partner in the venture is Swaidan Trading, part of the Al Naboodah Group. Financing for the deal, split between a cost of Dh845.7m for the buses and a Dh1.05bn maintenance contract, was arranged through Emirates NBD bank. VDL buses will be used as part of a feeder network of services for the Dubai metro. Separately, Daimler Buses won a contract to provide 260 Mercedes-Benz Citaro city buses, also to be used to serve the metro. VDL and Daimler sealed the contracts during the global economic slowdown as the RTA fast-tracked services to support its much anticipated metro. However, other bus manufacturers have said that proposed deals with the RTA to serve other parts of the Dubai transport system have not materialised. A plan to purchase about 800 double-decker and articulated buses from MAN, Volvo and Scania, first announced by the RTA in Nov 2007, had not resulted in any firm commitments, the manufacturers said. VDL said it hoped to capitalise on its success in Dubai by entering the Abu Dhabi market. The Government's plans include putting out to tender another round of bus contracts after recently confirming deals with MAN and Mercedes-Benz for 500 city buses and long-distance coaches reportedly worth more than Dh1bn. The VDL Citea is a 12-metre long city bus with a capacity of 68 passengers and includes air conditioning and facilities for people with special needs. Its diesel engines comply with Euro-4 and Euro-5 emission standards. igale@thenational.ae First anniversary for buses, A6

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

In numbers: China in Dubai

The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

Daily visitors to Dragon Mart in 2018/19: 120,000

Daily visitors to Dragon Mart in 2010: 20,000

Percentage increase in visitors in eight years: 500 per cent

Test

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Star rating: 2/5

SNAPSHOT

While Huawei did launch the first smartphone with a 50MP image sensor in its P40 series in 2020, Oppo in 2014 introduced the Find 7, which was capable of taking 50MP images: this was done using a combination of a 13MP sensor and software that resulted in shots seemingly taken from a 50MP camera.