Download delivering greater value in the middle east through mobility

OUR MOBILE FUTURE:
DELIVERING
GREATER VALUE
IN THE MIDDLE
EAST THROUGH
MOBILITY ORIENTED
DEVELOPMENTS
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FOREWORD:
DEVELOPING A
TRANSIT MODEL
FOR FUTURE
SUCCESS
Across the Middle East there are significant capital
investment plans aimed at building stronger
transportation networks to support the region’s
continued growth. Whether it is new Metro systems
in Doha, Dubai or Jeddah, or the longer term vision
to connect the GCC via a 2,200km rail network,
governments and client bodies have long recognized
the role that improved public transport can play in
launching the region’s cities into the 21st century.
But less obvious has been the careful guidance
required to ensure that cities evolve in such a way
that inhabitants may be transported in the most
efficient and equitable manner possible. Using just
one simple example, lower fares for the least welloff i.e. fares that are more heavily subsidized, is one
solution to transport equitability but shortening the
journey could well be a more cost-effective solution
in the long-run.
Similarly, much attention is often placed upon the
capital costs of developing transport solutions, and
rightly so, however municipalities must bear the
ongoing operating costs of the systems in perpetuity.
It is a much smarter approach to consider wholelife costs and how this investment in new transport
hubs can have a wider agglomeration effect on the
surrounding area as well.
With funding options becoming more limited, and
a resurgence of Public-Private Partnerships (PPPs),
there will be a sharper focus on delivering attractive
returns to investors to encourage them to fund. Key
to this is making sure that appropriate development
is included while the transport system is being
planned. This is the essence of Mobility Oriented
Development, or MODe.
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MODe:
AN EVOLUTION OF
TRANSIT-RELATED
DEVELOPMENT
Many cities have already embraced the idea of mixed-use development around
transportation hubs to increase the value of urban land, however the challenge to
think bigger is growing. There is increasing pressure to demonstrate how investment in
new transport hubs like rail can help to not only move people around more efficiently,
but also to create better urban “places”, delivering financial, social and environmental
benefits that support a broader national or city agenda.
Simply placing a shopping mall or mixed-use urban complex near a metro station is not
a guaranteed win for either the station or the surrounding area. To create a successful
development requires an earlier and more integrated approach that we call MODe. This
process is more complex than the traditional “build the station first and figure out the
rest later”, because it realizes the full value and potential of transit-hubs.
Leveraging the value of a MODe development will typically involve a greater number
of stakeholders with different interests and dynamics. These include city planners,
developers, retailers, investors, transit owner-operators and community groups. It may
appear easier for each party to only concern itself with the part of the development
over which it has direct influence, however this limits the overall impact of a hub
development and makes it more difficult to fully integrate it into the wider area.
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WHO CAN
BENEFIT
FROM A MODE
APPROACH?
When done well, MODe can deliver
real and measurable benefits for a
range of different stakeholders:
• Public authorities and private
developers can better understand
how to realize the full financial
potential from the overall
development
• Public bodies are better able
to attract additional funding to a
program or maximize the return
from their existing investment
• Developers enjoy an asset that
works well within the overall area
and is primed for future changes.
• End-users enjoy a better quality
and standard of living. MODe
typically offers a full range of
mobility options (walking, cycling,
bus, light rail, metro, heavy rail
and airports) in high quality urban
environments.
• All of the factors outlined above
mean that MODe communities
are popular, leading to improved
property values and higher rental
yields
A well planned MODe will provide
residents with an improved quality
of life, lower transportation costs
and reduced environmental impact,
while giving the area stable mixed
income neighborhoods and real
alternatives to traffic congestion.
Urban environments that offer a
high quality of life also have the
added value of attracting new
people and businesses. Investment
in easily accessible neighborhoods
is attractive, especially in those that
become popular in a short amount
of time, and returns for investors are
greater.
MODe aims to:
• Improve and sustain ridership
on public transport
• Discourage car driving by
offering better alternatives
• Make walking and cycling
safer to drive higher uptake
• Increase population density
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REALIZING THE
POTENTIAL OF
MOBILITY-ORIENTED
DEVELOPMENTS:
INTRODUCING
THE MODex
BENCHMARK
O
ur MODex benchmark
tool helps to define
the overall value of
integrated development
at and around transit-hubs. Built
using a range of indicators that
bring value to a development, it can
compare transit hubs before and
after development, and showcase
how high quality multi-modal urban
environments can deliver wider
economic and social benefits.
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MODex also provides:
• The ability to investigate how
far investment in a transit-hub
contributes to the success and
added value of the multi-modal
urban environment, including
factors such as higher property
values, pleasant public spaces
and increased revenue for local
businesses
• The ability to find out where there
is room for improvement
• Quantification of qualitative
measures
• A global comparison of
performance of multi- modal
urban environments measured
against a range of criteria
MODex addresses four key values, each
built from a number of specific indicators,
which have their own set of variables to
measure the score of the development
and benchmark it against others:
1. Transit-hub
Accessibility and comfort
describing the quality of the
transit- hub in relation to the
connections, variety and quantity
of transit modalities, proximity to
other important locations and
facilities, and providing comfort
to the traveler.
2. Urban environment
Informs us about the urban
form of the environment within
the transit zone and the degree
to which sustainability has been
taken into account. Indicators
such as density and whether a
development is mixed-use
determine urban form.
3. Social place making
Defined by indicators that
contribute to a vibrant, cohesive
and safe multi-modal urban
environment, such as the quality
of the public space and the
variety of public facilities within
the transit zone.
4. Economic development
Defined by the relative prosperity,
economic activity and property
value of the urban environment
within the transit zone.
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MODe
in ACTION
To examine the impact that a MODe approach
can bring to the Middle East we examined a
number of planned and existing stations to
assess current performance and demonstrate
the latent potential that could be unlocked
within each hub.
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AMSTERDAM
BIJLMER ARENA
Bijlmer ArenA Station is located in the Bijlmermeer suburb of the city of Amsterdam. It’s a major
transit hub with local, national and international routes all served from this station, as well as the
Amsterdam Metro and local buses. It’s also the closest station to the iconic Amsterdam Arena,
home of Ajax Football Club, and one of the city’s leading venues for concerts and other forms
of entertainment.
Given the multi-modal nature of the station, Bijlmer naturally scores highly as a transit hub
but it’s also exceptionally well integrated into the fabric of the local community. The quality of
public facilities is very high and this has seen a strong mix of residential, retail and other forms of
commercial development grow, both immediately around the station and in the wider area.
Bijlmer represents a good example of a station that is already realising a wide range of
benefits from a well thought-out transit that adds significant value to a city. There are still
some opportunities to secure further benefits particularly around the level of revenue that the
hub generates and in making on-going and incremental improvements to the quality of the
transit experience.
FIGURE 1: AMSTERDAM - BIJLMER ARENA
1. Hub Facilities
10. Transit Quality
100%
2. Sustainability
90%
80%
70%
60%
50%
40%
9. Proximity
3. Urban Form
30%
20%
10%
0%
8. Property Value
4. Quality of
Public Space
7. Revenue
5. Public Facilities
6. Prosperity
Current
Max
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DUBAI
UNION STATION
Union Station is the largest and busiest transit hub in Deira, a historic neighbourhood located in the
older part of Dubai. Deira was traditionally viewed as the commercial centre however the growth
of ‘New Dubai’ over the last 30 years has seen this part of the city evolve and reposition itself in a
different light.
Investment in improving the transport infrastructure has been a key part of this journey. With the
development of Union Station, the local community now has access to a first-class Metro network
as well as more integrated bus and coach networks and local taxi fleets. Development in and around
the transit hub is also generating strong revenue flows including retail and district cooling plants that
serve the station and surrounding area.
Progress over the last five years has been impressive however there are still some areas where
further improvements could be made. There’s potential to reduce the environmental impact of the
station by introducing solar panels and reducing the volume of heat created. Similarly, the impact on
the surrounding community has been uneven with areas to the north of the station still to reap the
same level of benefit in terms of property value and prosperity.
FIGURE 2: DUBAI - UNION STATION
1. Hub Facilities
10. Transit Quality
100%
2. Sustainability
90%
80%
70%
60%
50%
40%
9. Proximity
3. Urban Form
30%
20%
10%
0%
8. Property Value
4. Quality of
Public Space
7. Revenue
5. Public Facilities
6. Prosperity
Current
Prior to construction of
metro station
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Max
DUBAI
MALL OF THE
EMIRATES
Mall of the Emirates Station is on the Red Line of the Dubai Metro and connects directly into the shopping
mall via an enclosed overhead walkway. It’s one of the busiest stations on the city’s Metro line, with millions of
people travelling through it each year to reach one of Dubai’s largest leisure and entertainment destinations.
In recent years additional investment at the Mall of the Emirates has seen the station evolve into a more
integrated transit hub. It now includes the Metro, a small bus station, taxis, private cars and will soon be joined
by a tram link that links the Mall with the Dubai Marina and Jumeirah neighbourhoods. Extending the mall into
the station has also increased the net lettable area resulting in additional retail revenue and higher footfall.
Transit development at the Mall of the Emirates is also having an impact on the wider area with property
values beginning to rise in nearby Al Barsha.
As the station evolves there’s an opportunity to maximise the wider agglomeration effect, particularly
when the tram link connects the station with neighbourhoods to the West of the station. The other area of
opportunity is around reducing the carbon footprint of the station by improving the quality of the transit
experience to encourage increased ridership, of public transport, and less use of private vehicles.
FIGURE 3: DUBAI - MALL OF THE EMIRATES
1. Hub Facilities
10. Transit Quality
100%
2. Sustainability
90%
80%
70%
60%
50%
40%
9. Proximity
3. Urban Form
30%
20%
10%
0%
8. Property Value
4. Quality of
Public Space
7. Revenue
5. Public Facilities
6. Prosperity
Current
Prior to construction of
metro station
Max
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DOHA
UMM
GHUWAILINA
Umm Ghuwailina Station is currently under construction in the heart of Doha’s old town in the municipality
of Ad Dawhah. It’s situated adjacent to the old airport and at an interchange that connects two important
parts of the city. Once complete, the Red and Blue lines of Doha Metro will connect at this station.
Analysis of the station’s performance is a little subjective as work is still on-going however it should emerge
as a key transit hub that connects all four corners of the city. This will not only improve mobility and reduce
traffic problems, but also have a transformative impact on the surrounding area. The potential in, around
and beyond the station is enormous and, if managed correctly, the development of Umm Ghuwailina station
could emerge as a destination in its own right, and a symbol of Doha’s emergence as a world-class city.
One of the impressive parts of this programme has been the importance attached to sustainability, with
greener forms of construction actively identified and prioritised. The opportunity here will be to try and use
this philosophy to influence the developments that spring up in the area surrounding the station. This will
help to not only drive further environmental benefits, but also increase property value and social prosperity
as well.
FIGURE 4: DOHA – UMM GHUWAILINA
1. Hub Facilities
10. Transit Quality
100%
2. Sustainability
90%
80%
70%
60%
50%
40%
9. Proximity
3. Urban Form
30%
20%
10%
0%
8. Property Value
4. Quality of
Public Space
7. Revenue
5. Public Facilities
6. Prosperity
Forecast once Doha Metro
is operational
Current
Max
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JEDDAH
HARAMAIN
The development of Haramain Station is one of the most high-profile infrastructure schemes currently
being delivered in the Kingdom of Saudi Arabia. Once complete, it will include the current high-speed rail link
that connects passengers with the holy city of Makkah, as well as two planned Metro links.
Over the coming years the station at Haramain will look radically different however it has the potential to be
a first-class transit hub that makes a material difference to Jeddah’s congestion issues. The architects have
done a wonderful job with the proposed design and once complete, the asset will add huge value to the
public realm in and around the station. The green agenda has also been very well thought through in the
masterplans meaning the stations environmental impact will be well managed.
Geographic constraints mean the opportunities to grow in the area immediately surrounding the station
are limited however with the introduction of the two metro lines, there is an opportunity to look at a
wider perimeter. In this regard there are opportunities to increase property values in areas that are within
commutable distance of the station using the new Metro lines being planned.
FIGURE 5: JEDDAH - HARAMAIN
1. Hub Facilities
10. Transit Quality
100%
2. Sustainability
90%
80%
70%
60%
50%
40%
9. Proximity
3. Urban Form
30%
20%
10%
0%
8. Property Value
4. Quality of
Public Space
7. Revenue
5. Public Facilities
6. Prosperity
Forecast post Jeddah Metro
operations
Forecast post Haramain
High Speed Rail operations
Max
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SUMMARY
A well-balanced MODe has the power to
transform how people interact with existing
transport hubs and raise aspirations for what
future developments can achieve commercially,
environmentally and socially. By taking a more
holistic approach, it’s possible to unlock the full
value of investment in new transport assets to
not only secure better returns, but also to create
better lives and better futures.
This report is an extension of Arcadis’
Mobility Oriented Development report that
originates from our approach to transit-related
developments.
The MODex is a result of global collaboration
between Arcadis and CallisonRTKL (a Design
Consultancy of Arcadis). We have worked
closely together in order to develop and apply
the benchmark. In contrast to other global
benchmarks, where data is mainly conducted on
country or city level, the MODex demands data
on district and neighbourhood. To know more
about MODeX, click here to download the report.
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ABOUT
ARCADIS
Arcadis is the leading global Design
& Consultancy firm for natural and
built assets. Applying our deep
market sector insights and collective
design, consultancy, engineering,
project and cost management
services, we work in partnership with
our clients to deliver exceptional and
sustainable outcomes throughout
the lifecycle of their natural and built
assets. We are 27,000 people active
in over 70 countries that generate
€3.4 billion in revenues.
We have been active in the Middle
East since 1904 and can call upon
the skills and experience of over
1,800 people based in 10 offices
across the region including UAE,
Qatar, Saudi Arabia, Oman and
Bahrain. We support UN-Habitat
with knowledge and expertise to
improve the quality of life in rapidly
growing cities around the world.
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CONTACT US
If you would like to discuss any of the points raised in this
paper in further detail then please get in touch:
Bas Bollinger
Global Lead
T +31 627 060 414
E [email protected]
Geoff Leffek
Regional Rail Director
T +971 (0)56 994 7405
E [email protected]
Paul Sparrow
Associate Business Director - Rail
T + 971 (0)56 686 4629
E [email protected]
USEFUL RESOURCES AND FURTHER READING
To view the following reports, please click on the titles;
Global Built Asset Wealth Index 2015
Sustainable Cities Index 2016
Arcadis Rail
Global Infrastructure Investment Index 2016
International Construction Cost Report 2016
arcadis.com
ArcadisMiddleEast
@ArcadisinME
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