PLANES, TRAINS, AND AUTOMOBILES: TRANSPORTATION

UNCLAS SECTION 01 OF 02 ABU DHABI 002347

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STATE PLS PASS TO USTR DBELL

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TAGS: ELTN EWWT EAIR ECON ETRD PREL AE
SUBJECT: PLANES, TRAINS, AND AUTOMOBILES: TRANSPORTATION
DEPSEC CINO MEETS WITH UAE MINISTER

REF: ABU DHABI 2016


1. (SBU) Summary. On June 3, Deputy Secretary of
Transportation Maria Cino met with Sultan bin Saeed
al-Mansouri, the UAE Minister of Governmental Sector
Development, to discuss transportation and development
issues. Al-Mansouri discussed the expansion of the UAE's
civil aviation sector. He also outlined the UAE's strategy
for managing growth and congestion with increased road
infrastructure and new railway projects. Turning to the
U.S./UAE Free Trade Agreement negotiations, al-Mansouri said
that the UAEG needs to do a better job of consulting with the
private sector. End summary.


2. (SBU) DepSec Cino, accompanied by Ambassador, FAA rep, and
econoff, met with al-Mansouri, Riis Johanson, Director of the
UAE Air Navigation Services, and Mohamed Abu Baker Farea,
Director of Safety and Security, on June 3 to discuss
transportation and development issues. Al-Mansouri told Cino
that his vision for the new Ministry of Governmental Sector
Development (established in February 2006),is to set an
example for the region on how to manage growth. The UAE's
economy is growing at 10 percent. During a discussion about
the anticipated growth of each country's civil aviation
sector, al-Mansouri noted that the UAE expected a 10 percent
increase in passenger air travel, and a 15 percent increase
in cargo travel in the next year. The UAE has ongoing
airport expansions in both Abu Dhabi and Dubai's existing
international airports. Additionally, the Minister reported
that the first runway of the new cargo airport in Jebel Ali
would be open in 2008. Cino agreed that planning for
increased air travel is a critical step. She told
al-Mansouri the U.S. estimates that by 2015 one billion
travelers will travel through the U.S. per year (up from the
current rate of 750,000 million per year),and that the U.S.
is working to expand the capacity of existing airports to
accommodate this increase. (Note: The UAE's Civil Aviation
Authority was formerly a part of the UAE Ministry of
Communications. With the February 2006 Cabinet changes and
the abolishment of the Ministry of Communications, the
General Civil Aviation Authority was folded into the new
Ministry of Governmental Sector Development. End note.)


3. (SBU) Al-Mansouri told Cino that the roadway congestion in
Dubai is particularly troublesome. "We have design problems.
For example, there is a critical part of the major highway
in Dubai that goes from five lanes to three." He said that
the ministry is working with Dubai to add options for getting
over Dubai Creek, which separates the two sides of the city.
Al-Mansouri reported that Dubai has already begun
construction of two new bridges, and that by 2008, Dubai will
go from only having three ways to cross the creek to having
five (four bridges and one tunnel). (Note: in the June 7
English "Gulf News" daily, Dubai authorities announced that,
in addition to the two new bridges under construction, they
will build two more bridges over the creek (bringing the
total to seven ways to cross the creek). These bridges will
be completed in 2009, and will add an additional 24 lanes.
End note.) Al-Mansouri also reported that Dubai's internal
light rail system would be up and running by September 2009.
With Dubai's significant estimated growth, al-Mansouri is
aware that the railway infrastructure additions will not be
sufficient, noting "metro will ease the problem, not solve
it." (Note: In late 2005, Dubai's Ruler, Sheikh Mohammed bin
Rashid was quoted in the press as predicting that Dubai's 1.2
million population would grow to 4 million by 2015. End
note.)


4. (SBU) Al-Mansouri said that one way the ministry is
working to ease congestion on the roadways is by developing
two railway systems: one for cargo and one for passengers.
For their cargo lines, he said the UAE had worked with the
Dutch, who have a very successful model of using trains to
efficiently move cargo. Due to the short distance between
the two main cities of Abu Dhabi and Dubai (87 miles),
al-Mansouri said that high speed travel was not economically
efficient for passengers, and thus his ministry was examining
more traditional rail options. Al-Mansouri said the UAE was
working to be sure that its rail system is compatible with
other Gulf Cooperation Council (GCC) railroads. He said the
GCC countries were exploring the idea of building a 2,000 km
(1,243 mile) railroad connecting the six GCC countries.


5. (SBU) Turning to a discussion of the U.S./UAE Free Trade
Agreement (FTA) negotiations, al-Mansouri told Ambassador and
Cino that the UAEG needed to do a better job of consulting
with the chambers of commerce on changes resulting from the

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FTA. He said that the business community was worried and
felt that it did not have enough information on the impact of
an FTA. He said that in addition to providing more
information, the UAEG needed to consider the business
communities opinions and needs, "Their opinion should be
considered, because they have invested and made the UAE
economy what it is today." Regarding the expected changes to
the UAE's labor laws, al-Mansouri argued that the UAEG should
present the changes as being required by the International
Labor Organization (ILO),rather than as a condition of the
FTA. "The UAE should not let people think it is changing
these laws because of political pressure." (Note:
Al-Mansouri is a prominent Dubai business owner, and he is
actively involved in the Dubai Chamber of Commerce. Thus,
his perspective on the U.S./UAE FTA represents Dubai's
business interests. He publicly has resisted opening up the
UAE's telecommunications sector immediately in response to a
U.S.-UAE FTA (reftel). End note.)


6. (SBU) Comment: Al-Mansouri's timeline for completion of
Dubai's airport, road, and rail infrastructure projects is
ambitious, especially given competing projects. Projects in
the UAE typically are delayed well beyond their expected
completion date. End comment.


7. (U) Note: DepSec Cino visited UAE as the keynote speaker
of a Middle East Partnership Initiative-sponsored training on
women's political participation.
SISON