Oman - UAE Rail Project
Transportation plays a critical role in linking production hubs and the population, thus catalyzing economic activity. In Oman, transportation contributes approximately 5% to the annual GDP?(in?real terms) over the past decade. With increasing investments in logistics, this contribution is expected to rise, particularly with the emergence of new transportation modes that offer economically viable options for commerce. Linking existing industrial logistical hubs is crucial to enhance value-added outcomes.
In Oman, transportation contributes approximately 5% to the annual GDP?(in?real terms) over the past decade.
The Oman-UAE railway project is expected to add more economic value and employment opportunities. However, estimating the specific details and understanding the construction and operational timeframes are essential to determine the impact accurately. The overall impact of the railway project depends on the induced effects on supporting industries, including energy, cement and construction, and steel, where key raw materials and inputs are required. Domestic capacity to produce the materials and the train cars will depend on established manufacturers, and capacity building of contractors must be developed before, during and after the project is well underway and operational. To further maximize the economic spillovers of the project, talent development programs that aim to integrate Omani talent into the project are crucial.
Talent and Jobs
In 2022 the transport and cargo activities employ more than 97,600 people, with approximately 24% being Omani nationals. How would the railway project impact these numbers? During the early stages of the project, the construction and technical builds will employ a higher number of workers. However, the number of workers required during the operations will decrease. The jobs required will be skill specific and require specialized talents.
Developing those specific skills and talents, such as technical know-how in operational aspects, is necessary for any new industry development. Technical jobs potentially generated from the introduction of the project require training and skilling to fill the gaps. Scholarship programs can help introduce the first wave of cadres, and logistics management skills and other transportation-related know-how may lend themselves useful in cross-over expertise. Integrating Omani talent into the project is necessary, as rail projects are infrastructure-heavy and depend largely on fixed assets that are not easily shifted or repurposed.
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The transport and cargo activities employ more than 97,600 people, with approximately 24% being Omani nationals.
Its not Personnel?
The focus of the railway project needs to be on economic viability as a primary objective, considering the technical requirements for freight trains versus commuter trains. The logistics of cargo transportation and linking heavy industry to ports and cross-border destinations will be critical. However, personnel travel may prove to be more challenging due to a number of factors, including the urban design of cities, making public transportation less attractive. The railway project needs to keep room for social impact through connecting commuters in high-density areas with capital cities where commercially viable.
Unintended Consequences
The successful launch of the Oman Railway Project will present unintended distortions in the market. If railway logistics prove more cost-effective for businesses, there may be a shift from traditional lorry-based logistics, which may impact incumbent companies with established logistical networks across the countries and borders. Trucking will still be necessary to link railway hubs with nodes across the country as railway tracks can only extend so far and maintain commercial viability.
Overall, the immediate impact of the railway project are expected to be positive in the buildup stage. The effective utilization of the infrastructure to link key ports and logistical hubs will bar crucial to maximize the full socioeconomic potential.
Chief Executive Officer at XYTRAD CORP
1 年Future and must
Mittelstand ? Entrepreneurship ? Speaker ? Sparring Partnerin
1 年New mobility refers to the emerging technologies and transportation modes that are changing the way people and goods move around cities and countries. The Oman Railway is a key part of the country's new mobility strategy, as it represents a shift towards more sustainable and efficient modes of transportation. By providing a reliable and efficient rail network, the Oman Railway is expected to reduce the country's dependence on road transport and reduce carbon emissions, which is in line with Oman's commitment to reducing its carbon footprint.
Researcher | Supply Chain Management Expert | CIPP | CIPM | MCIPS
1 年Great early thoughts Dr., First, This a great opportunity to uplift and optimise the supply chain operations in the country, due to the nature of railways and its characteristics as being one of the dependable modes, via its ability to provide efficientcost effective way of transportation, it would add a lot of values as mentioned, *Sustainability It will be a very sustainable transportation mode compared to rest but mainly the road, - Drives an intensive sustainable intuitives, of which can automatically level up our sustainable development in the country, it can be anything like: - less emissions, - more capacities accumodated, - having its own track that minimizes SCM delay issues “lead time” - Increase the level of competition in the logistics sector (this would open up other business opportunities) as mentioned (jobs, social and economic opportunities) *Infrastructure* In this part I may not have a figure, but I can assure that depending only on trucking industry for all these long heavy journeys to connect hubs (have shortened the life of our roads), - Other knock on effects (traffic congestion) - An opportunity for the public transport sector (to provide better services, and provide more of multi-modal, etc