By Oxford Business Group
The relaunch of Ras Al Khaimah’s national air carrier, RAK Airways, in October came as major upgrades of roads, ports and the airport are under way as part of the emirate’s plans to become a regional transport centre and increase exports.
RAK Airways suspended operations a year ago in the wake of the global downturn but it is set to return strongly, according to company officials.
“We were forced to close a year ago owing to the extremely tough market situation,” Sheikh Omar Bin Saqr Qassimi, the chairman of the airline told local media. “But the time is right for a spectacular re-entry to the market.”
Sheikh Omar added that the airline hopes to serve expatriates working in RAK from southern India as well as people traveling to Saudi Arabia for the Hajj pilgrimage. The airline has been in negotiations with Boeing to lease and purchase up to four Boeing single-aisle 737 aircraft. The flag carrier is also implementing Dh99.3 million ($27 million) in infrastructure upgrades at RAK International Airport, including new runway lights, a complete overhaul of the terminal and improved aircraft maintenance facilities.
The airport, which was inaugurated in 1976, is being positioned as a major cargo and passenger hub in the region. Though it has some way to go before reaching this goal, it is a well-equipped facility with significant potential. With a 3760-meter-long runway, the airport is capable of handling the largest jets currently in service. Its cargo facilities, which include two dedicated buildings that are capable of handling a wide range of shipments, including bulk goods, live animals and fresh meat. These structures are presently being upgraded to streamline service and provide additional space.
RAK’s plans to become a regional logistics and shipping centre depend entirely on the current upgrading of the ports and the airport. Officials have confirmed to OBG that the emirate’s five ports are now overseen by the Saqr Port Authority rather than the Customs and Ports Department.
Saqr port, the primary port in RAK, has seen a number of upgrades since 2004 and today is considered one of the more advanced ports in the country. A Dh400 million ($109 million) expansion project that was in the works before the global economic downturn hit was put on hold in 2008,
but with record operations numbers at the port in 2009 it may well be restarted soon. Other ports in the emirate include RAK Port, which is currently undergoing a Dh14 million ($3.8 million) expansion project; RAK Maritime City, which is located next to Saqr port and in the midst of a Dh550 million ($150 million) upgrade; Al Jazeera port; and Al Jeer port, which will see Dh50 million ($13.6 million) in improvements.
RAK has historically held certain advantages over neighbours in the UAE and the region in terms of shipping links. The emirate was instrumental in the growth of Asiatic sea trade with Europe as far back as the 15th century. Today, the location on the Strait of Hormuz enables direct access to one of the world’s busiest shipping lanes. Shipping costs are almost universally lower in RAK, compared to major transport centers further south like Dubai. Also, RAK is small enough that moving goods within the emirate – from a factory or plant to one of the ports or the airport, for example – is inexpensive and fast.
Currently most goods for export in the emirate are shipped by truck to Dubai, with the majority of them passing through either the Jebel Ali port or the cargo village at Dubai International Airport. The infrastructure upgrades in RAK could see a substantial percentage of this cargo shipped directly out of the emirate’s ports and airport, rather than routing through its neighbour.
This is not to say that road infrastructure is not also on the agenda – the government is undertaking an $800 million project to upgrade the road network, which will include several new ring roads around RAK city and highways to areas currently only accessible by unpaved roads. One of the highest profile projects under way is the 36-km road to the top of the Jebel Jais Mountain, the highest point in RAK in Al Hajjar Mountains. Once the road is completed – possibly by February 2011, according to the most recent estimates – the government will begin work large-scale resort developments on Jebel Jais, which is expected to be a major tourist attraction in the coming years.
These developments signal a major positive change in RAK’s transport infrastructure, with the combination of air, sea and road initiatives set to significantly boost the emirate’s links to both the region and the world as a whole.
