Oman’s Mineral Rail to also support transportation of commercial goods

CONRAD PRABHU - MUSCAT, MAY 6 - A first-of-its-kind Mineral Railway contemplated by Asyad Group — the end-to-end-logistics services flagship of the Sultanate of Oman — for implementation in the mineral rich areas of Al Wusta and Dhofar governorates, will also double as an alternative to road-based transportation in the movement of oilfield, industrial, commercial and agricultural goods in these areas. Studies by Oman Rail — a subsidiary of Asyad Group tasked with exploring a Public-Private-Partnership (PPP) based framework for the delivery of the ambitious project — suggest that sizeable quantities of non-mineral based commodities can also be transported to businesses and communities operating in the proximity of the proposed Mineral Railway Line. The Implementation Support & Follow-up Unit (ISFU), a task force set up under the auspices of the Diwan of Royal Court to enable the implementation of a plethora of strategic initiatives in support of the Sultanate’s economic diversification, is also closely monitoring progress in the realisation of this landmark venture. “This initiative will act as a major stimulus to commercialising Oman’s relatively untapped and lucrative mineral resources, whilst opening the sector to large-scale investment and increasing the number of job opportunities open to Omanis,” said ISFU in a new report highlighting efforts made by all of the stakeholders in advancing this important project. “The proposed mineral-line project will support the annual transportation of over 30 million tonnes of mineral commodities from sites in Al Wusta and Dhofar governorates to processing plants and export-channels in Duqm and neighbouring GCC countries. It will also enable the transportation of a projected 1 million tonnes of oilfield equipment from Duqm port to oil and gas fields located in the surrounding area. By transporting around 3 million tonnes of industrial goods and 15 million tonnes of general products, including foodstuff and agricultural products to destinations in Al Wusta and Dhofar governorates, it will act as an alternative to road-based transportation,” it stated. Key stakeholders in the project also include the Public Authority for Mining (PAM) and Mineral Development Oman (MDO), the wholly government owned mining investment flagship. Last month, PAM Chief Executive Officer Eng Hilal al Busaidi told journalists that MDO has been tasked with formulating a strategy for harnessing potentially prodigious industrial mineral resources located in the Al Shuwaymiyah-Manji area of Dhofar Governorate. The Al Shuwaymiyah-Manji mineral zone — encompassing an area of over 3,000 sq kilometres, is home to “world record beating” reserves of high-quality limestone and gypsum, he said. The remote location of Al Shuwaymiyah-Manji — situated roughly midway along the 600km distance between Duqm and Salalah ports — necessitates viable logistics solutions to bring the mineral resources to a maritime hub for processing and eventual export, PAM’s CEO noted. According to the ISFU report, issued last week, a study on the inferred mineral resources potential of the Al Shuwaymiyah-Manji zone, along with a final bankability report, were due for completion by the end of 2018, culminating in the award of a mining licence. Oman Rail, for its part, has been tasked with the design and structuring of a PPP framework to support the entire endeavour, says ISFU. Also included in its remit are “the benchmarking of pit-to-port projects, market sounding, legislative and regulatory framework analysis and project structuring and recommendation”, the Implementation Support & Follow-up Unit noted. “Oman Rail will also work with the advisory services to prepare the PPP tender document,” it added.