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Oman-Etihad Rail Company (OERC) has announced that it has awarded contracts for three civil works packages for the railway project linking Oman and the UAE, which is now officially called Hafeet Rail.

The estimated AED5.5bn ($1.5bn) design-and-build contract was awarded to a consortium of Abu Dhabi-based National Projects Construction (NPC), National Infrastructure Construction Company (NICC), Tristar Engineering & Construction and Oman’s Galfar Engineering & Contracting.

NPC is the infrastructure development arm of the Abu Dhabi-based Trojan Construction Group, which is a subsidiary of local investment firm Alpha Dhabi.

According to sources close to the project, the clients are expected to appoint an engineering design firm for the project imminently.

OERC also awarded a separate contract for the rolling stock systems and integration contracts to German firm Siemens and Egyptian contractor Hassan Allam Construction.

Several high-ranking officials from both sides attended the agreement signing ceremony.

They included Sheikh Hamed Bin Zayed Al Nahyan, managing director of Abu Dhabi Investment Authority; Suhail Bin Mohammed Al Mazrouei, minister of energy and infrastructure; Abdul Salam Bin Mohammed Al Murshidi, chairman of the Omani Investment Authority; Qais Bin Mohammed Al Yousef, minister of commerce, industry and investment promotion; and Ahmed Bin Hilal Al Busaidi, Oman’s ambassador to the UAE.

In January, MEED reported that OERC had received bids for three civil works packages for the railway project linking the two countries.

According to regional projects tracker MEED Projects, the firms submitted their bids on 4 December for packages A and B. The bid for package C was submitted on 11 December.

OERC qualified companies that could bid for the three civil works packages for the railway project in August last year.

Network development

Oman-Etihad Rail Company was established in September 2022 to implement the railway network between the two countries.

The project subsequently received a push after Oman-Etihad Rail Company inked a strategic agreement with Abu Dhabi-based Mubadala Investment Company to support its development.

The UAE-Oman Rail Network is set to improve the two countries’ competitiveness in global trade and help establish their positions as logistics hubs that serve as gateways to regional markets.

The scheme supports both countries’ sustainable development goals by improving their transport and infrastructure sectors.

The line’s increased efficiency compared to other modes of transport is expected to reduce the overall cost of supply chains. The network will also provide trade and investment opportunities for the private sector and new job opportunities.

Passenger trains will run up to 200 kilometres (km) an hour on the line, reducing the journey time between Sohar and Abu Dhabi to 100 minutes and between Sohar and Al Ain to 47 minutes.

Freight trains will reach a top speed of 120km/hour.