Oman’s Tanfeedh, a national programme for enhancing economic diversification, has proposed a public-private-partnership (PPP) model for setting up a dedicated minerals-based railway freight line, said a report.

The proposal covers a 337-km railway line connecting Shuwaymiyah, an area known for mineral resources such as limestone and gypsum, with Duqm Port, added the Oman Daily Observer report.

Tanfeedh highlighted that by connecting mineral-rich regions of the country with seaports, the nation’s mineral-based natural resources can be suitably harnessed.

The initiative, one of several logistics-related investment opportunities, was recently outlined by Tanfeedh at the Oman Convention & Exhibition Centre.

Provisional studies conducted by Oman Rail, the national railway company wholly owned by Oman Global Logistics Group, have estimated the freight traffic potential of the proposed mineral line to include 5 million tonnes of gypsum, 5 million tonnes of limestone, and around 1 million tonnes of oilfield equipment annually.

But to ensure its investment appeal to the private sector, Tanfeedh has recommended a public-private-partnership model with private investors owning concession rights to minerals targeted by the rail project.

The model presented by Tanfeedh envisages an initial PPP ratio of 80 per cent public / 20 per cent private.  

Assuming an agreement is signed with a PPP partner (owning a mineral concession) in 2017, the project is expected to be operational by 2021.