(MENAFN- Khaleej Times)
Published: Tue 3 Sep 2024, 7:51 PM
Last updated: Tue 3 Sep 2024, 10:25 PM
Everything is on track and the two new Salik gates scheduled to be operational by end of November are positioned to better improve the flow of traffic and reduce congestion across key roads in the city, the CEO of Salik Company PJSC told Khaleej Times on Tuesday.
The two new toll gates – located at Business Bay Crossing on Al Khail Road , and Al Safa South on sheikh Zayed Road between Al Meydan Street and Umm Al Sheif Street – will increase the number of Salik gates in Dubai from eight to 10.
“A study conducted by the Roads and Transport Authority (RTA) on the impact of the new gates highlighted that the installation of the new gates is expected to yield various benefits in easing traffic and improve the movement of vehicles,” Ibrahim Al Haddad, CEO of Salik – Dubai's exclusive toll gate operator – told Khaleej Times in an exclusive interview.
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He explained:“As a result of the Business Bay Crossing gate, traffic congestion is expected to reduce on Al Khail Road by 12 to 15 per cent, while traffic volume on Al Rabat Street is expected to reduce by 10 to 16 per cent.
For Al Safa South gate,“we expect to improve flow of traffic allocation between Financial Center Street and Meydan Street; reduce right-turn traffic volume from Sheikh Zayed Road to Meydan Street by 15 per cent; and to redistribute traffic to use the larger First Al Khail Street and Al Asayel Street,” he added.
Al Haddad also explained Al Safa South gate is a technical solution linked with the existing northern Al Safa gate.“This means there is just one single payment for those passing through both the northern and southern Safa gates within an hour.”
Ibrahim Al Haddad, CEO of Salik. Photo: Supplied
“Previous analysis using specialised traffic tools and models have shown that the current eight toll gates have contributed to reducing the total travel time across the emirate by approximately 6 million hours annually and increasing the number of public transport users by about 9 million passengers annually,” underscored the Salik CEO, who also gave more details about Salik operations in Dubai.
Here are further details of the interview, including if there are plans to introduce more toll gates or hike up Salik fees.
When will the new toll gates begin operation?
Al Haddad confirmed the two new gates are expected to be operational by the end of November.“Everything is on track, and we are not expecting any delays,” he noted, adding:“A subsequent announcement will be issued to the public by RTA and Salik prior to the commencement of operations.
“We are also very pleased to highlight that both new toll gates will be almost 100 per cent solar powered, which is a first for Salik and something that we have been focused on achieving for some time. This supports our sustainable growth agenda, aligned with Dubai's ESG (environmental, social, and governance) goals and our commitment to green energy, where we have plans to make all Salik gates solar powered over the next few years,” he added.
Is there a plan to increase Salik fee?
Al Haddad said“any adjustments to the tariffs are a decision for the RTA and are subject to approval by the Executive Council of Dubai.
The new gates will operate similarly to the existing gates, whereby the Salik tag will automatically be charged the Dh4 fee when passing through one of the gates. Meanwhile, Al Safa South gate will be linked with the existing Al Safa North gate, which means vehicles passing through both the North and South gates within one hour in the same direction will only be charged once, similar to Al Mamzar North and South.”
Will there be additional toll gates in Dubai?
Al Haddad categorically answered“there is no fixed schedule for new toll gates” (aside from those opening in November).
He noted“the introduction of a new toll gate primarily rests on traffic and congestion levels” and depends on the outcomes of technical and traffic studies.
“The goal is to make transportation in Dubai more efficient and enhance traffic flow across the road networks. The expansion of tolling systems – whether through adding gates, adjusting toll fees, or implementing dynamic pricing relies on the results of transport strategy assessments reviewed and updated by the RTA. However, any changes to toll rates would require a green light from Dubai's Executive Council,” he clarified.
How will Salik finance the two new gates and what are the associated costs?
Al Haddad said agreement has been reached with RTA on a repayment plan for the total valuation amount for the two new gates over a period of six years starting from the end of November 2024.
The annual instalment will be Dh455.7 million, to be paid in two equal instalments of Dh227.9 million each, every six months, which will be provided from the company's own financial resources.
Al Haddad revealed the total construction cost for both Salik gates is around Dh65 million.“Since these gates are RTA assets, they will reimburse us for construction on a cost + 10 per cent basis,” he added.
What is the combined valuation of the two new gates?
The Salik CEO said the combined valuation for the two new gates came in at Dh2.73 billion, of which the Business Bay gate was valued at around Dh2.27 billion and the Al Safa gate at Dh469 million.
Al Haddad also talked about Salik's main growth drivers, underscoring the company's“solid results during the first half of 2024, where there was a 4.9 per cent increase in revenue-generating trips compared to the same period last year, reaching a total of 238.5 million.
“This growth, coupled with a 5.6 per cent increase in total revenue to Dh1.1 billion, is a testament to the continued demand for our services. Most of our revenue growth, about 87 per cent, which is up 4.9 per cent year-on-year, was from toll usage. This reflects growing traffic volumes on Dubai's roads, which is an indicator of the city's increased economic activity. Additionally, we saw a 7.4 per cent increase in revenue from fines.
“The government's focus on human well-being and its ambitious plans for urban innovation and sustainability have created a favourable environment for businesses and residents,” Al Haddad underscored, adding“This, in turn, has led to increased traffic and higher demand for our services. Dubai's status as a central commercial and tourism hub has also been a major factor in our success.”
Expected road congestion reduction
Business Bay Crossing gate will reduce traffic by:
12 to 15 per cent on Al Khail Road
10 to 16 per cent on Al Rabat Street
Al Safa South gate:
15 per cent reduction of right-turn traffic volume from Sheikh Zayed Road to Meydan Street
Improve traffic flow between Financial Center Street and Meydan Street
Redistribute traffic to wider First Al Khail Street and Al Asayel Street
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