Union Railways, the government-owned firm in charge of an estimated $11 billion United Arab Emirates railway, said it plans to open the project to interested bidders in the next two months.

"We will be starting a formal solicitation process to seek expressions of interest in the relatively near future," Chief Executive Richard Bowker told reporters on the sidelines of a rail conference on Tuesday.

"Expressions of interest will begin in the next two months," Bowker earlier told the conference, noting that the 1,500 kilometre railway network will operate on diesel engine but can be converted to electric.

Bowker said an industry workshop was conducted in Abu Dhabi on March 24, attracting local, regional and international interest.

"We are confident we are going to get a very competitive set of tenders when we come to do that," he said.

"The preliminary survey is already underway, and the engineering team is building holes in the ground."

Union Railways plans to begin operating the first phase of the network in 2013, starting with Ruwais to Habshan areas in Abu Dhabi, Bowker said.

The project is scheduled for completion in seven to eight years and is estimated to cost between Dh30 to Dh40 bn ($11 bn).

Bowker said the company was in discussions with companies such as Adnoc, Emirates Steel Industries, Arkan and others to market the project and its services.