MUSCAT -- The Oman National Railway Project is expected to catalyse the growth of manufacturing industries and support services, all of which will also contribute significantly to employment generation, say authorities overseeing the development of the multibillion rial scheme. With a view to jumpstarting the growth of a new economic sector, the Ministry of Transport and Communications will host a public forum in September designed to solicit investor feedback on business and commercial opportunities associated with the railway project.
The forum, according to Abdulrahman al Hatmi, Director of Oman Railway Project, will also provide an opportunity for the government to spell out its long-term vision for the development of rail-based freight and passenger travel in the Sultanate, and the huge multiplier effect it would have on the country's socio-economic growth. In terms of its direct contribution to the gross domestic product (GDP), the national railway project is projected to account for around 5 per cent of the Sultanate's national product. This figure will be considerably higher if the project's indirect contribution is also taken into account, he noted.
The September forum, said Al Hatmi, will be an opportunity to "engage" investors and take their ideas on board as the government prepares to implement the mammoth project, estimated to cost in the order of RO 6 billion. These inputs from the private sector will be winnowed and proposals considered feasible will be incorporated into the overall master plan for the implementation of the rail project, he said. Outlining prospects for private sector investment, he said the government envisaged opportunities across a variety of manufacturing industries, production of spares, maintenance workshops, services, catering, and so on. Commercial opportunities will also be plentiful in the vicinity of stations planned along the length of the network, he said.
Furthermore, avenues for investment in the manufacture of railway tracks, cables, and other hardware -- whether in the north or south of the country -- would be assessed during the September symposium, Al Hatmi said. Importantly, in nurturing the growth of an economic sector around the rail project, the government will endeavour to maintain the flow of investment within Oman as far as possible, the official said. A key goal, he said, is to support the establishment of industries and services in the areas of design, construction, and operation and maintenance. These activities will necessarily have to be of an international quality and competitive level, so that Omani products can be ultimately exported to foreign markets, he stressed.
Development of the rail project and the associated economic sector would in part be guided by the success stories of equivalent economies, whether in South America, East Europe, or elsewhere, he said. The goal, he said, is to maximise opportunities for the private sector while looking at the experiences of other countries that have successfully developed rail based transportation networks. The Oman venture will be benchmarked against some of these international success stories with a view to evaluating the contribution of railway networks in the emergence of towns and villages along the alignment, as well as the overall prosperity of the country in question, he noted.
In parallel with this effort, the Ministry will also put in place concrete plans for the development of Omani human capital that will play a key part during the construction and operational phases of the rail project, Al Hatmi said. The ultimate goal is to position Oman as a Centre of Excellence in the training and development of professionals for regional rail networks, thereby creating opportunities for skilled Omani resources across the region.
Plans drawn up by the Ministry in this regard envision a 10-year strategy for the development of Omani human capital to lead the railway sector in the Sultanate. It includes an initiative to recruit 50 engineering graduates who will be seconded to the Preliminary Design Consultant (PDC) and the Project Management Consultant. At the same time, the Ministry plans to join hands with a strategic partner in the development and operation of a Centre of Excellence in Oman. Courses related to careers in rail-based transportation will also be included in the syllabus of universities and colleges, Al Hatmi added.
© Oman Daily Observer 2013
