As part of a $3 billion joint venture to develop and construct a railway network between Oman and the UAE, Oman Rail and Etihad Rail are seeking pre-qualification bids from businesses experienced in carrying out large-scale infrastructure projects in Oman, the Oman News Agency reported.
On March 27th, local businesses and joint venture groups from Oman and the UAE may submit an application along with a bid cost of $13,6154.70 (50,000 dirhams) and a description of their credentials, timeline, and methodology.
With the project intended to link Oman’s Sohar Port in the country’s north with the UAE’s National Rail Network, the move hopes to increase the participation of the private sector in the state-owned project and the national economies of both nations.
Read more: Major progress likely on Oman transport projects in 2023
Currently, the 290-kilometer journey between Abu Dhabi and Sohar, one of the main enclaves in northern Oman, takes only 3.5 hours. However, this is expected to change over the next decade.
The project is being managed by Oman and Etihad Rail as part of a joint venture. They signed a protocol for the 303-kilometer route with Abu Dhabi’s Mubadala Investments Company, which was sealed during Emirati President Mohamed bin Zayed’s visit in February to the Omani capital, Muscat.
Travel time cut to 47 minutes
Etihad Rail will construct the nearly 300-kilometer-long line. It will allow passenger trains to travel at 200km/h, while goods trains will travel at 120km/h. This connection will begin in Sohar, the northern port, and will reduce travel time from Abu Dhabi to Sohar, north of Muscat, to 100 minutes, and travel time from Sohar to Al Ain to 47 minutes. Passengers from Abu Dhabi will be able to connect to Etihad’s rail network to reach Dubai in the meantime.
In 2014, the sultanate laid out its strategy for 2040, which envisions the sector creating about 300,000 jobs as Oman becomes a logistics centre.
Trains will link Sohar and Abu Dhabi in an hour and 40 minutes while the journey from Sohar to Al Ain will take 47 minutes.
Lowering costs and improving connectivity
The rail network, when complete, will link Oman’s GCC neighbours to all ports in the sultanate.
Ship owners whose vessels dock at Sohar port each week can save up to $10 million and 104 days annually by opting to transport their goods further inland by rail, said a Mercator report commissioned for Oman’s logistics strategy for 2040.
For ship owners offering many services, this could equate to savings in the range of $50 million to $100 million a year.
Trade booster
Suhail al-Mazrouei, UAE Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company said “The establishment of the Oman-Etihad Rail network is an extension of the strategic relations and strong historical ties between the two countries, and the foundation of the strong partnership between Etihad Rail and Oman Rail.”
The new rail project’s economic and social benefits are expected to be enormous, according to Abdulrahman Salim al-Hatmi, CEO of Oman Rail’s parent company Asyad.
“The goal is to connect the Sultan’s three ports with the industrial, commercial, and residential areas of the country and to increase trade and tourism opportunities between the two Gulf neighbors and the rest of the region,” he added.
For more on logistics-related news, click here.
