OER and Emirates Steel Arkan MoU
Ahmed Al Musawa Al Hashemi, CEO of Oman and Etihad Rail Company (OER), and Saeed Khalfan Al Ghafri sign the MoU for raw limestone transport from Oman to UAE. Image Credit: Supplied

Abu Dhabi: Oman and Etihad Rail Company (OER), the developer and operator of the UAE-Oman Rail Network, has signed a MoU with Emirates Steel Arkan to facilitate the export of raw materials from Oman to the UAE. 

OER will provide logistics solutions to manage the transportation of raw limestone, which UAE’s steel and building materials manufacturer Emirates Steel Arkan plans to import from Oman to its cement factories in Al Ain.

Ahmed Al Musawa Al Hashemi, CEO of OER, and Saeed Khalfan Al Ghafri, CEO of Emirates Steel, an Emirates Steel Arkan company, signed the MoU.
Al Hashemi said, “This agreement represents the vision for this project, which was launched to link Oman and the UAE and aims to enhance cross-border trade between the two countries, linking centres of manufacturing and production and connecting import and export points.” 

He added, “This will create promising and sustainable business opportunities for the mining industry and construction materials production sector in Oman and the UAE.”

OER will provide logistics solutions for Emirates Steel Arkan through annual transportation of 4 to 6 million tonnes of high-quality raw materials to Al Ain. This ensures that Emirates Steel Arkan can produce and export 2-3 million tonnes of finished goods to regional markets annually.

Emirates Steel’s Al Ghafri said, “Our collaboration with OER enhances our supply chain capabilities by leveraging the railway network that connects both countries. This agreement paves the way for integrated logistics solutions for transporting raw materials to and from our cement plant in Al Ain, boosting operational efficiencies and cost-effectiveness and reducing environmental impact.” 

The officials said that the collaboration between OER and Emirates Steel Arkan creates several benefits, most importantly driving the revenues of the mining industry and increasing investments in Omani quarries. By connecting ports and manufacturing hubs, the railway network will provide quarrying companies in Oman with direct shipping solutions to export their products to regional markets.