Oman- UAE railway project inks agreement for bulk material transport

Dubai: Oman and the UAE signed a long-term commercial agreement to transport bulk material, enabling the private sector to enhance the competitiveness of their products to reach regional markets, Hafeet Rail said in a statement.

Hafeet Rail – a joint venture between Oman Rail, Etihad Rail, and Mubadala – signed a commercial agreement with EMSTEEL to facilitate the transportation and export of aggregate materials between the two countries.

Additionally, Hafeet Rail has awarded the construction contracts for its key railway facilities in Oman to Larson & Toubro (L&T) and Power China, as stated in a statement. The China Railway Rolling Stock Corporation (CRRC) has also been contracted to supply a fleet of freight wagons, Hafeet Rail added. This will secure seamless transportation and handling of bulk, containerized, and breakbulk cargo, enhancing throughput efficiency and multimodal connectivity.

Additionally, the Sohar facility will include provisions for locomotive and wagon maintenance.

The agreement with EMSTEEL, one of the region's largest publicly traded steel and building materials manufacturers, ensures the transportation of limestone and red shale between the two nations, with an annual freight volume of 4.2 million tons over a 15-year term. The agreement is extendable based on future demand.

Ahmed bin Ali Al Bulushi, Board Member of Hafeet Rail and CEO of Asyad Drydock and Infrastructure Services, said, “These contracts enhance the technical and commercial capabilities of the network while reinforcing seamless integration between local industries and regional markets.”

This strategic collaboration aligns with Oman Vision 2040 and the UAE’s National Strategy for Industry and Advanced Technology (Operation 300bn), reinforcing secure, high-efficiency supply chains for critical raw materials.

Ahmed Al Musawa Al Hashemi, CEO of Hafeet Rail, said, “This railway will unlock new trade routes, optimize supply chain efficiencies, and stimulate sustainable economic growth, creating long-term value for businesses and communities across both countries.”

Meanwhile, Saeed Ghumran Al Remeithi, Group Chief Executive Officer, EMSTEEL, said, “This agreement is a significant step forward for EMSTEEL as it ensures a reliable and sustainable supply chain for our cement unit. By leveraging regional resources and infrastructure, this partnership demonstrates how we can collectively drive industrial growth and build a more sustainable future.”