NEWS / Business

Emaar denies problems on Dubai Tram project

Emaar Properties’ US $20 billion (AED73 billion) Downtown Burj Dubai tram project may be in jeopardy and the company is going through an “across the board belt-tightening exercise,” a former top executive has said.

Emaar officials deny the tram system is off the rails, but the company has been in talks with UK-based firm Dutco Balfour Beatty Rail (Dutco BBRail) to install a trolley-bus or a light rail system in the Downtown area as an alternative to the tram, a Dutco official said.

Cuts at Emaar have included job losses, according to the source, who asked not to be identified.

The company has also been hit by spiraling costs across the Downtown Burj Dubai development, said the source who had been close to the project.

In addition, at least one member of the project team for the master-developer’s tram system is no longer with the company.

Residents of the Downtown area are already putting pressure on Emaar to resolve transport issues in the development.

“The

residents are going to be the people who are up in arms about it and making more of a fuss and they are already putting pressure on people,” he said. “Now that the mall is open it (access to and from the Downtown area) is even worse.”

 “We’re looking at how we can help Emaar with some of these problems,” Dutco BBRail project director David Bill said. “Rail is a potential. A trolley-bus is also a potential solution to a problem for Emaar. Clearly there is a bit of thinking to do.

“I think the trolley-bus would be quite a good solution but nothing is finalised at this stage,” Bill added. He emphasised that no final decision had been made.

An Emaar spokesperson told Construction Week, “The Burj Dubai tram system by Emaar Properties, an integral infrastrucure aspect of the $20 billion Downtown Burj Dubai mega-project, is progressing as planned.

“The tram system not only links the various residential, commercial, mall and hospitality projects within Downtown Burj Dubai to the Dubai Metro, it will also serve as a key access for residents and visitors to commute within the 500-acre master-planned community,” the spokesperson added.

The tramway, which was unveiled in April, will include two lines. The first phase will be a 1.1km line linking the Burj Place interchange station to Dubai Mall.

Emaar’s “belt-tightening” comes as the industry faces up to the realities of the global financial crisis, with banks reluctant to offer up easy finance and real estate sales expected to dip due to uncertainty among buyers.

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