The population on the Arabian Peninsula countries has reached to 75 million people in 2014 and it will reach to 96 million in 2030, also the GDP in these countries has reached to USD 1.8 trillion in 2014 and it will reach to USD 3.3 trillion in 2030. The Arabian Peninsula countries have directed a lot of investments into the rail infrastructure sector including logistics areas and industrial zones, in an effort to provide an alternative source of income other than oil and gas.
The Oman Railway Network (ORN) construction is projected to begin by the second quarter of 2015. This is expected to boost the economy by reducing the cost of goods, and improve links within and between Arab nations.
The first 170km section of the railway network will link Sohar port to Buraimi, with the rest of the 2.244km network will be built in nine sections over the next four years.
Over the next 15 years the Oman government will invest USD 50bn in construction projects and 40% of this will go into transport infrastructure including the Oman National Railway. This is set to rise with increased oil revenues and the Sultanate’s plans to diversify its economy. For example, the country plans on using its rail network to bypass the Strait of Hormuz, alleviating security concerns in those troubled sea lanes.
Tenders are being bid for the time present, with the announcement of the winner expected in the next couple of months, and construction beginning soon after.
A total of eighteen consortia and joint ventures pre-qualified to participate in the design and build package of the multibillion dollar project.
The Sohar – Buraimi stretch, 207 km, representing Segment 1 of the Oman National Railway network, connects the Port of Sohar to the GCC rail network at the Sultanate’s border with the United Arab Emirates at Al Buraimi and Khatmat Milahah.
The first tracks of the Sohar – Buraimi line will be laid in the third quarter of 2015. Tenders will be awarded in mid 2015 to one of eighteen consortia that have pre-qualified, with the intention to start construction work soon after. Bidders looking to build the first phase linking from the UAE’s border through to Buraimi and the port of Sohar include five Italian-led consortia, three Chinese-led groups, two Indian firms and bids from South Korea and Austria. Oman Rail announced that the list had been narrowed to five, and that the second stage of the process will now review the financial aspects of the bids. It is hoped that trains will start running on the route by 2018, at roughly the same time GCC nations have agreed that the GCC Railway Network will be complete.
Five stations are planned for the first phase of the Oman Railway Network that is about to be constructed. There will be two commuter railway stations and three inter city stations built along the first, 207km network that will include a section of the GCC Railway Network.
Oman Rail has floated tenders for the construction of an additional 1,207 km of railway infrastructure linking the country’s three maritime gateways at Sohar, Duqm and Salalah with its national rail network and, ultimately, the GCC-wide rail system.
Through back-to-back tenders, the Omani company aims to complete three further segments of the nine-segment national rail network by awarding contracts worth an estimated USD 6bn (AED22bn) to USD 8bn (AED29.3bn).
by Elena Ilie
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