Oman Railway Company (Oman Rail) has selected companies for the multifunctional consultancy contracts for its planned domestic mineral railway project.

The shortlisted consultancy firms are understood to include the US-based Parsons and an Italian joint venture comprising Rete Ferroviara Italiana (Italian Railway State Company) and Italferr.

It is understood that a third consultant could also be selected.

The selected consultants are still waiting for the official letter of award from Oman Rail, which received offers for the multifunctional consultancy package in December last year.

The contracts will be on a call-off basis within a period of two years, which means Oman Rail will be able to access the selected consultants’ services within the specified term.

The scope of the consultancy package includes the development of operation and maintenance models, infrastructure, rolling stock, ports, mines and auxiliary services, among others.

It is understood that the Omani government has yet to decide on the procurement model for the construction and operation of the railway, pending the outcome of a study that aims to assess the level and quality of mineral reserves in the sultanate’s Dhofar region.

However, sources have told MEED that there is a strong push to use the public-private partnership (PPP) model to develop the project.

The planned railway will carry heavy freight from three locations in the Dhofar governorate to a central location, which will then link to a separate rail line that runs to Duqm Port. The mineral cargoes can then be processed into final products such as steel or glass at Duqm’s special economic zone, before being exported to international markets.

The line is envisaged to connect with Segment 4A, which under the current Oman National Railway plan, will terminate in Amal. Amal will serve as the hub of the mineral line that will branch out to Shuwaymiyah, Manji and Thamrait. From Amal, a separate line will run to Duqm Port.