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Oman - $ 356 million investment boost for transport

Wednesday, 28 July 2010 16:54

Oman - A raft of new agreements recently signed by the Ministry of Transport and Communications will see a significant round of investment in Oman’s transport infrastructure . The 15 agreements, signed earlier in July, cover projects in land, sea and air infrastructure and are worth a total of OR136.9m ($355.9m).

The most significant investment will be in overhauling two stretches of the Nizwa-Thumrait road. Two contracts, worth a combined total of just under OR56m ($104.5m), will see 325 km of the route rehabilitated by Al Nasr Al Arabia and the Gulf of Oman Company. A further sum of more than OR35m ($90.9m) will be spent on new road construction throughout the Sultanate.

The biggest single project in terms of cost, however, will be the supply and installation of new equipment at Muscat International, Salalah and other domestic airports. For this, a contract worth OR44.85m ($116.5m) has been signed with Indra. Two smaller contracts were also signed for consultancy services in the maritime sector, the largest being an OR260,000 ($675,300) contract with Bird Associates, to study damage to the southern breakwater at Sohar Industrial Port.

The new investment in Oman’s transport infrastructure comes on the back of several other significant projects to link the Sultanate’s new industrial centres. An OR27.6m ($71.7m) contract for the construction of infrastructure at Sohar Airport was signed by Strabag Oman at the end of June, joining the OR37.5m ($97.4m) contract awarded to the firm last year for the first phase of construction at the airport. A contract is also expected to be awarded early next year for the project management of a proposed 280-km rail link between Sohar and Muscat, to be known as the Oman National Railway.

The multibillion-dollar freight and passenger railway will link the Sultanate’s major industrial and urban centres. A total of 32 international companies expressed interest at the pre-qualification stage of the process, which closed in mid-June. According to local press, the planned network will consist of four sections: the Sohar-Muscat section, which will include eight passenger stations and further cargo stops; the Muscat-Duqm section, with two cargo and nine passenger stations; the Sohar-Buraimi section, with two cargo and four passenger stations; and the Sohar-Khatmat Melaha section, which will consist of one cargo and four passenger stations.

Speaking to local media last month, Salim bin Mohammed Al Affani, the general manager of urban planning at the Supreme Committee for Town Planning, said that specifications for the Oman National Railway will match those under consideration in other parts of the GCC for the planned 1940-km Gulf-wide rail network. The track specification will handle trains of up to 350 km per hour, though initial internal rolling stock is expected to travel at speeds closer to 200 km per hour for passengers, and 80-120 km per hour for cargo.

Earlier this year, the Ministry of Transport and Communications completed a feasibility study for the 306 km of the proposed GCC network that will link Oman with the UAE. The complete network is expected to be rolled out over the next seven to eight years, and involve investment across the Gulf exceeding $100bn. In addition to the GCC network, a further line linking Oman with Yemen is also currently under consideration.

The scale of investment across Oman’s transport sector should lead to a significant improvement in the nation’s logistical capacity in the coming years, enabling enhanced access to international markets for the Sultanate as well as improved local trade links with GCC neighbours. In the latter case, Oman Air is already successfully developing itself as a niche provider for the smaller cities of the neighbouring UAE.

In July, Oman Air will begin the operation of its feeder service to Al Ain, the second city of the emirate of Abu Dhabi, while the airline already serves Ras Al Khaimah. With the recent hiatus of RAK Airways, neither city was being served by Emirates Airline, Etihad Airways or Air Arabia. Officials will no doubt be hoping that further investment in transport infrastructure will enable the Sultanate to capture yet more business from under-served local markets.

Global Arab Network

This article is published in partnership with Oxford Business Group

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Last Updated on Wednesday, 28 July 2010 17:13

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