The document discusses opportunities for railway operators in Oman. It notes that Oman has a strategic geographic location between East and West that historically facilitated trade. Today, Oman has a growing and diversifying economy, with average GDP growth of 9% annually in recent years. The development of Oman's railway network and logistics infrastructure is identified as a key driver of further economic growth, including doubling international trade volumes and facilitating growth in industries like mining and tourism. The 2,135km planned railway is expected to help establish Oman as a major regional logistics hub and connect its ports and population centers while integrating with other GCC rail networks.

1. Growing opportunities
for railway operators
in Oman

2. A vibrant and politically stable country,
located at the cross roads of the world
Oman’s location, between the eastern and
western corners of the globe, and at the
foothills of the Middle East, naturally places
the Sultanate at the center of global trade
lanes. Indeed, its geo-strategic importance
was already exemplified during the struggle
for international maritime supremacy in the
16th century, when the Portuguese invaded
Oman in order to secure their lucrative trade
routes from India and South East Asia.
Today, Oman is in the midst of a second
renaissance. It has a young, educated and
highly ambitious population. Furthermore,
it benefits from continued political stability,
strong international relations, and a rapidly
growing economy with an average GDP
growth of 9% p.a. over the last 5 years.
Oman’s geographical location is as
advantageous today as at any point in its
history. It currently finds itself at the heart of
the fastest growing economies of the world
(South East Asia, Middle East and Africa),
and is placed directly on the major shipping
routes between East and West.
Given the recent investments in its logistics
infrastructure, Oman is able to offer its
neighboring countries and continents
one of the fastest and most cost efficient
distribution hubs for the Middle East and the
Indian Ocean regions, while at the same time
avoiding the requirement to navigate the
politically sensitive Straits of Hormuz.
Introduction to Oman
Asia
Middle East
South
America
North
America
North
Europe
Mediterranean
Australia
Far East
Volume [TEU m]
1 – 2
2 – 4
4 – 6
6 – 8
8 – 14
TranspacificTranspacific
21
Exhibit 1: Global trade routes

3. A flourishing economy, rich in natural resources
with significant growth potential
Oman enjoys one of the fastest growing
economies in the world. Over the last 5
years, GDP growth has averaged over 9%
p.a., predominantly driven by an increase in
oil & gas production, prudent investments in
economic diversification (in particular in the
tourism, agriculture and logistics sectors), and
growing competitiveness of Omani exports.
Far from resting on its laurels, Oman is
determined to maintain the economic growth
momentum. Despite the recent decline in oil
price, Oman has challenged itself to achieve
double digit growth annually over the upcoming
five years. The key building blocks of this
growth include:
• Continued investments into economic
diversification
• Further development of international trade
• Sustainable development of Oman’s natural
resources
4Latest Graphs and Exhibits_20-5-15.pptx
9%
2013
78
2012
76
2011
68
2010
59
2014
82
Exhibit 2: Oman nominal GDP
growth, 2010-2014 [USD bn]
1. Investment into economic diversification
As mapped out in the Sultanate’s long-
term country strategy, Oman will continue
to disproportionately invest in five core
industries: logistics, tourism, agriculture,
mining and industrial. All these sectors have
been identified as focus of state investments
due to their significant growth potential as
well as their ability to act as cornerstones
of Oman’s future economic prosperity.
In 2012-2014, Oman already invested more
than USD 20 billion into the expansion of
its logistics infrastructure resulting in the
enhancement and establishment of three
major ports, five new airports, and 2,500
km of new road infrastructure. In addition,
a national logistics sector strategy was
developed to ensure the provision of all the
“soft infrastructure” required for best-in-class
logistics industry in Oman. Consequently,
Oman’s logistics sector contributed USD
5 billion to the national GDP in 2014.
In the upcoming years, the Sultanate will
continue to further invest into its logistics
infrastructure focusing on the build-up of
the national railway network (more than
2,100 km) and further upgrading its highway
infrastructure (more than 500 km). Together
with the establishment of a dedicated
government agency responsible for driving
the development of the logistics sector
these measures are expected to double
the country’s cargo throughput, adding
further USD 5 billion to the Omani economy
and creating 50,000 new jobs by 2020.
2
Macro-economic overview

4. 2. Development of international trade
Foreign trade is a significant contributor
towards Oman’s economy. In 2013, Oman
exported USD 65 bn, imported USD 35 bn
and re-exported USD 9 bn of goods.
Exportsareprimarilydrivenbypetrochemicals,
minerals, plastics, metals, textiles, electrical
machinery and food. Major recipients are
neighboring GCC and Asian countries. Re-
exportedproductsareprimarilyimportedfrom
Asia and Latin America, and subsequently re-
exported around to other GCC countries and
the wider Middle East region.
The introduction of the railway and the
development of the overall logistics
infrastructure will further enable the growth
of international trade by providing Omani
companies with a more efficient supply
chain. By establishing the basis for a more
cost efficient way of supplying raw materials
and a faster and more reliable delivery of
goods to customers, Omani companies will
become significantly more competitive on
the international stage. Furthermore, these
measures will serve re-exporters with a more
cost efficient and faster mode to distribute
goods both into to GCC countries and the
wider Middle East region as well as across
the Indian Ocean and beyond.
To further facilitate the continued growth its
international trade, Oman is increasing its
offering of incentives to attract international
investors to Oman. The establishment
of additional freezones and free trade
agreements with multiple countries including
the USA, the GCC common market, the Arab
countries (GAFTA) and Singapore are already
having a profound effect on the increase of
Oman’s trade figures.
In conclusion, the above mentioned initiatives
are expected to result in a continued double
digit growth of Oman’s international trade
volumes with a particular focus on the volume
of re-exported goods which is estimated
grow by more than 80% by 2020.
3
6Latest Graphs and Exhibits_20-5-15.pptx
56
52
47
37
28
35
29
24
20
18
0
10
20
30
40
50
60
20132012201120102009
19%
18%
Total importsTotal exports
Exports CAGR
Imports CAGR
Exhibit 3: Oman trade activity
Macro-economic overview

5. Qatar
South Korea
396
456
1,502
KSA 2,363
UAE 5,014
Kuwait 462
Tanzania 474
USA 557
Pakistan 1,073
India 1,264
China
11Latest Graphs and Exhibits_20-5-15.pptx
9,887
9,334
7,876
6,357
4,804
2011
2010
2012
2013
2009
Exhibit 4
Oman top non-oil export countries
[USD m]
Oman non-oil exports, 2009-2013
[USD m]
Oman’s top 10 non-oil export countries
9Latest Graphs and Exhibits_20-5-15.pptx
4
Macro-economic overview

6. 3. Sustainable development of Oman’s natural
resources
Oman is blessed with an abundance of
natural resources aside from oil and gas. In
particular, the Sultanate is rich in gypsum,
limestone, copper, marble and chromium.
While these resources are currently already
form a substantial portion of Omani exports,
a strong increase is expected over the
next decade building on an improved
transportation infrastructure.
The majority of the above-mentioned natural
resources are located in remote areas of
Oman, which are typically served by road
transport links (if at all). As a result, the
mining of these resources is currently often
economically unfeasible. The build-up of
the railway network (designed to pass
through areas with a high concentration
of natural resources), will improve the
economic attractiveness of a multitude of
mining projects significantly.
Overall, while all mining will occur in a
respectful and sustainable manner, it is
estimated that the railway network will
enable a 6-fold growth of Oman’s mining
industry.
5
Macro-economic overview

7. A key enabler for economic growth
As mentioned above, the logistics industry is at
the heart of Oman’s economic growth strategy.
Today, the Sultanate’s geo-strategic advantages
and world class infrastructure offer a great,
but relatively untapped potential. The recent
implementation of a country-wide strategy for
the logistics sector (“Oman Logistics Strategy”),
combined with continued investments in both
logistics infrastructure and services, seek to
realize this untapped potential and establish
Oman as a regional logistics hub.
1. Size of the logistics sector opportunity
Oman’s logistics industry currently
contributes USD 5 bn to the economy,
employees 30,000 people and handles
over 3 million TEU. However, by 2020 the
logistics sector is targeted to contribute
over USD 10 bn to the economy, employ
80,000 people and handle over 10m TEU.
The forecasted growth will be primarily driven
by the expected growth in domestic cargo
volumes aswellasbyincreasinglychanneling
parts of neighboring countries’ cargo through
Oman. Given Oman’s advantageous
geographic position, it is expected that
the upcoming railway network will enable
Oman to capture a disproportionate
volume of the GCC market cargo growth
(with a current growth rate of 8% p.a.).
By achieving these targets Oman would
ultimately reach a 20% market share
of the cargo volumes in the GCC region
(compared to 14% today – see Exhibit 5)
without the need for cannibalization of any
existing cargo volumes in the GCC region.
Exhibit 5: GCC east coast container
throughput, 2013 vs. 2020f [TEU m p.a.]
6
2Part 2 graphs_50-5-15.pptx
Oman
Kuwait
Abu Dhabi
Dammam
Bahrain
Khor Fakkan
Dubai
2013 volumes
(∑ 27 m TEU)
2020f volumes
(∑ 40 m TEU)
= 5 m TEU p.a.
Oman’s logistics sector

8. 2. Value proposition of Oman’s logistics sector
F o r a c h i e v i n g t h e s e a m b i t i o u s
t a r g e t s , O m a n c a n b u i l d o n a
variety of competitive advantages:
Firstly, Oman enjoys a premier geographical
position to distribute goods into and
out of the GCC, as well as around the
Indian Ocean. The benefits of this
geo-strategic advantages include:
• Faster access into and out of the GCC
markets (land based transport with
rail could by up to 36 hours faster than
shipping with feeders)
• More reliable access into and out of the
GCC markets (avoiding the politically
sensitive Straits of Hormuz and the
congested ports of the other GCC
countries)
• Cheaper access into and out of the GCC
markets (up to USD 250,000 savings on
fuel charges per vessel only)
• Three deep-water ports, capable of
handling all sizes of vessels (some of
which are currently unable to call at
regionally competing ports), including
the corresponding freezones (offering
enticing incentives for key industries)
• A new international airport under
construction (Muscat) and four newly
developed regional airports
• An extensive expansion of the road
infrastructure and other infrastructure
such as a newly developed logistics park
• Trade facilitation – As part of this
initiative, the Oman Logistics Centre
aims at facilitating lean, transparent
and consistently applied government
approval processes with respect to
the import, export, re-working and
physical movement of cargo in Oman; in
addition, the time required to establish a
business in Oman should be significantly
accelerated.
• Markets – The Oman Logistics Centre
also encourages and incentivizes the
development of a superior logistics
product offering and promotes the
creation of a globally recognized brand,
such that Oman is considered as a key
logistics hub by potential customers
• Human capital – In this area, the Oman
Logistics Centre aims at enabling an
adequate supply of labour and the
development of the local workforce
capabilities
• Technology – Finally, the Oman Logistics
Centre aims at developing a state-of-the-
art work environment in order to increase
the attractiveness and productivity of
Oman’s logistics infrastructure
Secondly, in order to leverage on its geo-
strategic advantages, Oman has developed
a world-class infrastructure, including:
Thirdly, given the criticality of the logistics
sector to the growth of the overall economy,
the Omani government developed the
“Oman Logistics Strategy” in 2014 under the
patronage and chairmanship of the Minister
of Transport and Communication. As part
of this strategy a dedicated government
agency (“Oman Logistics Centre”) has been
established which focuses on addressing
four priority topics to enable growing Oman
into a regional logistics hub. These four
topics are:
7
Oman’s logistics sector

9. The backbone of Oman’s logistics strategy
The development of the railway network in
Oman project is partially driven by the develop-
ment of the GCC Railway Mainline (see Exhibit
6). Designed to generate economic, social and
environmental benefits for each of the mem-
ber countries, the GCC Railway Mainline will
link all six GCC member countries along their
eastern sea border, from Kuwait in the north,
through Saudi Arabia, Qatar, Bahrain, the
United Arab Emirates to Oman in the south.
In order to effectively facilitate cross-border
trade and thus maximize the impact created,
the entire rail network in the GCC region is
designed to allow full interoperability. Fur-
thermore, the network will accommodate both
passenger and freight services.
Exhibit 6: Overview of GCC Railway
Mainline and domestic rail networks
4Part 2 graphs_50-5-15.pptx
KSA
Qatar
UAE
Jordan
Jeddah
Kuwait
Doha
Kuwait
City
Al-Buraimi
Abu Dhabi
Sohar
Salalah
Mazyounah
Riyadh
Damman
Oman
Al Duqm
Muscat
Planned GCC Railway Mainline Planned Omani railway lines Main ports in Oman
Existing Saudi railway lines Planned Saudi railway lines
1. T h e r a i l n e t w o r k i n O m a n a n d
i t s t e c h n i c a l s p e c i f i c a t i o n s
The full rail network in Oman will ultimately
span 2,135 km and connect Oman’s major
ports, industrial areas, mineral deposits and
population centers both with each other and
with the wider GCC region (see Exhibit 7).
The railway will benefit from the following
technical specifications:
• Double track designed for future
electrification
• Safety by design (no crossings at grade,
protected by fencing)
• Mixed freight and passenger operations
• Locomotive and wagons axle load of
32.4 tons
• International design standards (AREMA
AAR/UIC)
• State-of-the-ar t signaling and
communication systems (ETCS Level
2, GSM-R)
8
Oman Rail

10. Exhibit 7: Oman Rail network
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Haima
Salalah
Mazyounah
Main ports
Nizwa
Hafeet
Al-Buraimi
Sohar
Muscat
Amal
Ibri
Marmul
Thumrait
Ibra
Yemen
UAE
Saudi Arabia
Al Duqm
Value proposition of the Omani rail
network and forecasted demand
The Omani government is driving the
development of the national railway
network based on the following rationale:
Firstly, the establishment of the rail network
will drive the growth of international trade.
The advent of the railway will enable Oman
to take full advantage of its geographically
advantageous location. Once operational,
the railway will provide the most cost
effective and reliable distribution channel
into and out of the GCC region, while also
having the added advantage of allowing
• Containers: It is expected that the
railway will attract an incremental 2
million TEU to Oman’s ports within the
first five years of being operational, to
be distributed into the wider GCC region
by rail (this equates to less than 8% of
the total addressable rail market)
• Automotive: By 2020, over 3 million new
cars are forecasted to be sold every
year in the GCC. Currently, new cars
are distributed by the car manufacturers
to each individual country of the GCC.
Based on preliminary discussions with
several car manufacturers, there is
a clear potential to consolidate the
distribution in one country, with Oman
being able to offer an attractive value
proposition once the railway is developed
• Bulk: For example, one bulk shipping
company currently imports 8 million
tonnes of iron ore pellets into Sohar port,
which are subsequently distributed into
the GCC region; preliminary discussions
indicate that this volume could ultimately
be distributed fully by rail. Furthermore,
the railway could attract numerous
other bulk shippers to import/export
through Oman
9
Oman Rail

11. 10
shipping lines to avoid the politically sensitive
Secondly, the upcoming railway network
will drive the growth of international inward
investment. As more customers distribute
their GCC region destined cargo through
Oman, the opportunity for Oman (and
in particular Omani freezones) grows
to offer value added services such as ,
e.g., warehousing, packaging, assembly.
In addition, as the establishment of the
rail network enables a more efficient
and reliable supply chain, Oman will
become a more attractive location for
international companies to locate their
business (especially when conducted
in conjunction with concerted efforts
to improve the ease of doing business).
Thirdly, this new mode of transportation
will improve the competitiveness of the
domestic industry significantly. The railway
network will provide Omani companies with
a more efficient supply chain solution, thus
enabling Omani companies to become
more cost competitive on both the domestic
and international stage. In addition, the
railway will enable a strong growth in the
exploitation of natural resources (particularly
gypsum, limestone and marble) due to
improved economics. It is estimated that
the railway could be used to transport up to
20 million tonnes of gypsum from Thumrait
to the ports of Salalah and Duqm already
within two years after the start of operations.
In addition, the railway could be used to
transport 10 tonnes of marble, gypsum
and limestone from northern Oman to the
port of Sohar within the same time period.
Finally, the railway will lead to a
significant reduction of road congestion
and improved road safety as well as a
decrease of environmental pollution.
Consequently, preliminary discussions with
major potential customers demonstrate
great enthusiasm and demand for the
new railway.
Oman Rail

12. A unique oppor tunity to develop a
railway business with limitless potential
As witnessed above, the railway lies at the
lifeblood of Oman’s economic development.
Given its importance, Oman Rail is seeking an
internationally experienced partner to ensure
the successful build-up of its freight railway
operations. It is envisioned that the partner will
have proven expertise in developing, operating
and maintaining a safe, efficient and effective
railway business, and as such will be best placed
to successfully aid Oman Rail in maximizing
the economic value creation potential of the
railway.
1. Key benefits for the operating partner
The envisioned partnership will be
highly attractive to entrepreneurial and
collaborative railway operators seeking
lucrative growth opportunities. Particular
benefits for the operating partner include:
Firstly, the partnership offers the opportunity
to develop operations in a greenfield
set up. To maximize the probability of
success, the operating partner has the
opportunity to shape the development of the
railway (e.g. terminal design, rolling stock
procurement, operational guidelines) right
from its beginning without legacy issues or
having to overcome preconceived ideas.
Secondly, the project offers a unique business
opportunity with very limited risk, given
the large existing domestic base demand
from a concentrated customer base. Over
20 million tonnes of existing cargo flows
from three potential customers are already
in advanced discussions for conversion to
rail. A further potential of up to 70 million
tonnes of domestic volume capture within
11
the first two years from a concentrated
base of large domestic mining companies.
Thirdly, the partnership offers large demand
upsides from international opportunities.
In addition to the domestic base demand,
there is a large potential upside from
international opportunities, including the
potential to transport up to 5 million TEU
from Oman’s ports to the GCC region within
the first 5 years, as well as the potential
to consolidate car manufactures’ and bulk
traders’ distributions into and out of the GCC.
Fourthly, the partnership will be built on
lucrative contractual terms rewarding
business success. Oman Rail recognizes
that to attract the best partner, is must
provide a lucrative opportunity. Therefore,
Oman Rail has designed the contractual
terms to reward its chosen operating
partner upon achievement of the business
development and operational targets.
Finally, the partner will have the opportunity
to contribute towards the development of
a country. Hence, given the importance of
the railway for Oman, the operating partner
will benefit from full governmental support
in its pursuit of developing the railway. In
addition, the partner will be able to benefit
from strong international PR, given the
highly prestigious nature of the project.
Operating partnership with
Oman Rail

13. 12
Operating partnership with
Oman Rail
1.
2. Contact details for interested parties
Interested parties are encouraged to
contact Oman Rail for more details
using e-mail: tenders@omanrail.om or
phone: +968 22 308 900.
A link to the tender details can also be
found on the website of Oman Rail using
the following link:
http://www.omanrail.om/supplychain