Karwa lays foundation stone for Oman’s first bus assembly project

Business Friday 01/December/2017 11:59 AM
By: Times News Service
Karwa lays foundation stone for Oman’s first bus assembly project

Muscat: The foundation stone for Oman’s first bus assembly unit was laid on Thursday at the Special Economic Zone of Duqm (SEZAD) as the Sultanate prepares to deliver first assembled bus by early 2020.
Karwa motors, a joint venture between Oman Investment Fund and Qatari national transport company Mowasalat, aim to roll out 1,000 buses every year when $90 million phase one operations commence. Construction of the 220,000 square meter-facility is expected to be completed by end of 2019, an effort that can grow to making Duqm a bus hub over long term.
“Capacity for phase one is 1,000 buses that can be expanded to 3,000 buses in the future when we see there is more demand. This is an important step in the cooperation between Qatar and Oman as both countries focus on sustainable economic growth,” Khalid Al Hail, Chairman of Karwa Motors said, after the stone laying event at SEZAD.
The first phase of the project will initially be equipped for welding, painting and assembly of buses and coaches creating 200 jobs in sales, marketing, assembly, carpentry and other support services. Over time, the project is expected to pull in investments in auto parts, components, engineering services, electronics, workshop and so on, thereby creating an automotive-based manufacturing cluster in Duqm.
“Proximity and ease of access to the Port of Duqm ensures reduced shipping time and less effort and time on road transportation for raw materials as well as quick dispatch of finished buses to customers. This will also assist in speedy release of goods from the port, reducing storage time,” Al Hail added.
The target markets include the GCC and other regions as the demand grows and capacity of the facility increases, Al Hail said.
Chinese bus manufacturer, Higer Co. Ltd., has been named the technology partner and CKD Kit Supplier for the project.
As with any automotive industry anywhere in the world, Karwa Motors is expected to contribute immensely to knowledge transfer, skills development and socio-economic growth within Duqm and beyond. Besides creating high-value technical and administrative jobs for Omanis, the project has the potential to catalyse the growth of a flourishing automotive components sector, nurture technical talent pool, and also position Oman as a destination for sophisticated industrial manufacturing.
A key spinoff is its potential to support the development of an advanced design, engineering and processing knowledge base in Oman, fuel innovation in processes and product design, and drive the growth of export-led private investments in this industry.