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* Over 6,000 km of track may be laid by end of decade

* GCC governments envisage spending some $100 bln

* Population growth, diversifying economies behind plans

* Would boost trade, reduce dependence on Hormuz Strait

* But projects face technical, political obstacles

By Martin Dokoupil

DUBAI, Oct 31 (Reuters) – A century after Lawrence of Arabia

cut the Damascus-Medina railway, governments are embarking on

plans to restore long-distance rail transport in the region and

extend it across the Arabian Peninsula.

Official figures suggest around $100 billion may be spent by

the end of this decade laying over 6,000 kilometres (3,750

miles) o f track for both national lines and a route linking all

the states in the Gulf Cooperation Council: Saudi Arabia, the

United Arab Emirates, Kuwait, Qatar, Oman and Bahrain.

The governments face big technical challenges, such as

making six national rail systems compatible and building on the

shifting sands of remote deserts.

But success could have far-reaching effects on economies in

the region, cutting their dependence on expensive road and air

travel, boosting trade and even bringing the GCC closer together

politically.

“It will undoubtedly transform the economies as any major

piece of railway does,” said Keith Hampson, director of global

rail transit at Aecom, a U.S.-based transport planning firm.

“It opens up all sorts of trading relationships that

probably otherwise would not have existed.”

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