The RTA needed a new business model for operating and maintaining its rail transit system. Building on years of experience elsewhere, our multi-disciplinary team recommended a solution and took it to market.
Fast facts
The Dubai Roads and Transport Authority (RTA) is responsible for roads, taxis, and public transport throughout the emirate
The Dubai Metro fully opened in 2011
The Dubai Tram opened in 2014
The new contract was let to Keolis MHI – a joint venture between Keolis and Mitsubishi Heavy Industries
Ten years after opening, the metro’s operating and maintenance contract was near expiry and the tram contract with the system manufacturer had a break-point. The existing contract was designed to suit the early years of a newly-built system and it was no longer clear that the level of risk transfer was optimal, or would continue incentivising the right maintenance practices. The RTA wanted to review the options for having a single operator take over both systems and implement a preferred approach quickly.
We started by taking time to understand the RTA’s wider and long-term objectives, as well as conducting a review of global business models – ranging from long-term privatisation to fully ‘in-house’ municipal operations (and detailed variations).
We recommended an approach involving firmer transfer of risk to a private contractor, with opportunities for the RTA to retain oversight and even intervene in areas such as management of station retail unit lettings.
We ran market engagement, worked with legal and technical partners to develop the new contract, and supported on letting it.
A strong procurement process, run using international best practice, attracted multiple high-profile bidders from around the world and resulted in a competitive price from a reputable contractor. The new business model will deliver value and high performance from the metro and tram through to the 2030s.
The contract also gives the oversight, control, and flexibility the RTA needs to meet long-term strategic objectives – including expansion to serve the growth in traffic around Dubai.
The team of Atkins, Grant Thornton UK, and Eversheds-Sutherland were awarded a certificate of appreciation from the RTA as one of the best consulting teams of the year.
