Oman receives bids for railway project

03 March 2014

South Korean-led consortium bids low for Oman railway contract

A consortium led by South Korea’s Dohwa Engineering, has submitted the low bid for the project management consultancy (PMC) package for the $15bn Oman National Railway Project.

The Transport & Communications Ministry is overseeing the implementation of the rail project, which involves the construction of a 2,244-kilometre-long network that will connect Oman’s major ports and cities, including Muscat, Sohar, Duqm and Salalah, in addition to linking with the Etihad Rail project.

The network will have 46 stations, eight marshalling yards and nine intermodal yards. It will also require 12,000km of rail, 23 cubic metres of ballast and 10.2 million sleepers.

The winner of the PMC contract will be responsible for the entire execution of the project and is also expected to work with the Omani government and its representative institutions after the rollout and launch of the rail network.

The selected consortium will be responsible for the procurement of rolling stock, reviewing the contract process, supervision of contract management and construction, as well as project management services. The ministry received two prices from each consortium.

The Dohwa Engineering-led consortium, which includes Oman’s National Engineering Office, Korea Rail Network Authority, First China Railway and India’s Balaji Railroad Systems, submitted the low bid of RO34.3 ($89.2m), along with a second bid of RO106.8m.

The consortium of Spain’s Técnicas Reunidas, Lebanon’s Dar al-Handasah and Spanish firm Ineco, submitted the second-lowest bid of RO59.5m, along with a second bid of RO165.1m.

In third place was a consortium of US-based Parsons International, France’s Systra, and US’ Aecom, which submitted prices of RO78.8m and RO185.97m.

The first phase of the project includes a 242km section from Sohar Port to Al-Misfah in Muscat, an 8km spur line to Sohar Railway Yard and a 20km link from Al-Misfah to Muscat Central Station, as well as a 486km line from Muscat to Duqm Port and an 84km link from Sinaw to Ibra.

A 136km track from Sohar to Al-Ain with a 27km spur to Buraimi and a 58km track from Sohar to Khatmat Malaha are also part of the first phase of the project.

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