Rail Agency Adopts Diverse Initiatives To Reduce Costs

Roads and Transport Authority – Manal Khalid:

The Rail Agency, Roads and Transport Authority (RTA), has been keen on rolling out a host of plans and initiatives in a bid to reduce costs and augment revenues in 2010 in keeping with the strategic plan of the RTA.

Commenting on the achievements made in this score the CEO of RTA Rail Agency Adnan Al Hammadi said: “We have rolled out as much as 15 different initiatives last year, thanks to the efforts of the work team comprising competent employees of the Agency who proposed ideas contributing to achieving the core objective of the Agency; which is an integral part of RTA higher policy aimed at figuring out solutions for reducing costs. These initiatives have been put forward upon identification of the key elements relating to the services of operational, capital and projects expenditure; which is the baseline of the operational plan aimed to slash costs and hike revenues.

“The majority of initiatives undertaken have been carried out in a phased manner over the year. The first initiative was related to Al Qusais Park-and-Ride facilities and associated installations where the Rail Agency has made huge financial savings. An internal work team was formed to review the technical designs of the project and supervise the work progress at site; which has saved about 23 million dirham as a result of reducing the administrative and consultant services costs.

“The project work team also conducted a comprehensive study of the value engineering of the project which resulted in easing the operational stipulations of the project, including modification in the surveillance cameras, bus waiting lounge and footbridges linking with the car-park; which have also resulted in savings as much as 30 million dirham.

“The team was keen on developing an initiative to reduce the administrative and consultant costs relating to Al Qusais car park; which resulted in a 17 million dirham savings. It also reviewed the designs of Al Qusais parking lot and made modifications which enabled us to reduce costs in lighting and various other systems in the order of 6 million dirham.

“There were some procedures taken as regards the contract made with the Dubai Metro operator Serco Co. in terms of reducing the number of employees, number of daily trains in operation, working hours, and maintenance processes among other steps taken on the Red Line resulting in savings of about 7.5 million dirham. As to the Green Line; which will be in operation in August 2011, the same initiative is being applied, contributing to savings estimated as 47 million dirham.

“Among other processes taken by the Rail Agency which has made significant reduction in costs was in the area of project contracts in general be it related to building, maintenance, consultancy or others where the savings made clocked 24,078,665 dirham. Maintenance of the metro and stations was another area for savings to the tune of 25 million dirham, and the Agency, in coordination with Dubai Police, has made savings in compensation for the properties through realigning the route of the rail track to pass through less expensive areas compared to others; which has considerably dropped the cost to about 22 million dirham, besides the reviewing of the Green Line extension which also resulted in 17 million dirham savings,” elaborated Al Hammadi

“The Rail Agency has made tireless efforts last year to carry a several initiatives that have made a difference in achieving our strategic objective of reducing costs. Examples of these include switching Al Ittihad Station into an investment project in partnership with the private sector; resulting in savings of about 3 million dirham, keeping a research study about the integration of public transport network with the metro stations on hold till the completion of the opening of all related metro lines and stations; which made a 2 million dirham savings, and running an initiative relating to train maintenance in matters related to furniture, office supplies and other items; which resulted in 1.4 million dirham savings.
 

Emirate:  Dubai

Date: Mar 15, 2011

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