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T he Oman National Railway Project is expected to be one of the most important infrastructure projects for the next years as stated by representatives of the Ministry of Transport and Communications MoTC The vision of this project is to progress the railway network so that the logistics industry becomes a significant GDP player and Oman becomes the region s gateway This ambitious development is estimated to cost anywhere between OMR 5 6 billion for building 2 224 km of railway line Part of the project s significance comes from the essential new mode of transportation systems that will serve the country and its future link to the proposed GCC states rail network estimated cost OMR 100bn The idea behind this project is to establish inter connected transportation by simplifying cargo movement minimizing transportation costs providing commuters with efficient modes of daily transportation and easing traffic congestion throughout Oman s cities The project shall be implemented on a fast track basis meaning completion through a single phase Because of this the Ministry of Transport and Communications is asking the private sector to consider investment strategies and take advantage of accessible opportunities By the end of 2013 the Government and Ministry of Transport and Communications have revised and evaluated tenders and are thus at an innovative stage of appointing a project management consultant PMC Five groups consisting of international consultants have submitted their offers regarding the PMC package The first contract for the PMC is set to be awarded by the end of 2014 The award contract for the first design and building phase is planned for the fourth quarter of 2014 whilst the civil construction of the first part of the rail network is set for the beginning of 2015 The main sections of the Railway are anticipated to become fully operative by 2018 Further agreements for the railway project have been signed on the 5th of February 2014 The first contract was signed with Grant Thornton Abu Timam for providing consultancy services for the organizational structure and the second with Dar al Takween for creating a corporate image and new brand identity for the railway project The Italian engineering company Italfeer won a contract for consultancy services for preliminary designs from more than 30 local and international companies which conveyed interest in this package Their main focus is on the preliminary design of the 171 km Sohar Buraimi segment It was confirmed that the entire railway will consist of 30 small stations ten provisional stations six large stations and eight marshalling yards To sum up the Railway plans in figures the project plans to have 40 freight and 30 shunting locomotives 5 recovery locomotives 30 diesel multiple units for passengers 15 diesel locomotives for passenger trains 80 passengers coaches going up to 200 km h and 500 various cargo wagons The railway will be linked to all of Oman s major ports and therefore the number of freight wagons will be much higher than the rest Additionally the project will comprise an estimated 12 000 km of rail and a further 10 2 million concrete sleepers railroad tie made out of steel reinforced concrete Within the sector framework the Ministry of Transport and Communications is in the lead for this project with its role as the policymaker Below the Ministry comes the Directorate General for Land Transport and Railway whose responsibility relates to licensing auditing organization and legislation Positioned at the bottom of this three levelled pyramid structure is the Oman Railway Company ORC The ORC is set up as a newly formed company within the Ministry of Transport and Communications This organization is not only in charge of operator s supervision investments and sector developments but also responsible for ensuring the efficient implementation of the project and providing appropriate management of the railway sector In regards to the operations department the ORC can still decide whether the operations are to be managed by the company itself or by a subsidiary If this occurs ORC can contemplate on giving the operation license to a foreign company which could open doors for German companies interested in the Oman Railway Project Over the years German companies have been involved in both large and small scale industrial projects in the Sultanate and hence Germany has become an important partner for Oman Oman National Railway will create immense opportunities for both investments and business in all four phases of the project the development construction operation and maintenance Hence German companies are without doubt eligible candidates for taking part in this aspiring project for Oman and the GCC region A German Delegation visited Oman in 2012 where the main topic of conversation was the Railway project The meetings in 2012 showed that Oman is seeking cooperation from Germany whilst the team also expressed their interest through exploring ways of bilateral cooperation The Railway will boost Oman s exports and trade yet also provide social benefits The National Railway Project will present the Sultanate with great opportunities including many employment and entrepreneurial prospects as well as further establishing Oman s modernization goals From a long run perspective the Railway will certainly impact the economy of the country in a positive manner with considerable growth to Oman s GDP The country strives for development and therefore this project is a major stepping stone n oman national railway project FOCUS OmanFOCUS OMAN Jasmine Sperlich German Industry and Commerce Office AHK Oman MAJLIs ISSUE 12 19