Sohar: Oman, Etihad Rail Company (OER), and Al Jazeera Steel Products Co (AJSP) have joined forces by signing an MoU for efficient logistics on the UAE-Oman Rail Network. The agreement optimises the transportation of raw materials and finished goods, promoting cost-efficiency and sustainability. OER will facilitate logistics for Al Jazeera Steel’s factories in Oman.
Under the terms of the agreement, OER will leverage the UAE-Oman Rail Network to support Al Jazeera Steel in optimising inbound and outbound logistics from its factories in Oman.
Once fully operational, the UAE-Oman Rail Network will unlock efficiency in freight movement by reducing travel time between both countries and eliminating delays related to weather and traffic conditions. Each train will be able to seamlessly transport a capacity of up to 15,000 tonnes of freight between five major ports and over 15 integrated freight facilities in both the UAE and Oman.
Mohammed Al Mahruqi, Deputy CEO of OER, said, “Our partnership with Al Jazeera Steel Product Co reinforces Oman and Etihad Rail Company’s commitment to providing cost-effective, efficient, and sustainable logistical solutions to customers in Oman and the UAE.”
Al Mahruqi added, “The agreement builds on the vision of Oman and Etihad Railway Project and its ability to enhance cross-border trade activity between the two countries, linking manufacturing and production centres and connecting import and export points. As a result, we believe this agreement will significantly contribute to supporting the growth of various industrial sectors within the UAE and Oman.”
The agreement showcases the significance of the railway network as a crucial link in the transport and logistics chain spanning the region, attracting several commercial clients in both countries. The joint railway network will reduce dependence on cars and trucks and drive the transformation towards a low-carbon future.
Venkat A.N., CEO of Al Jazeera Steel Product Co, said, “We believe this new logistics service provided by OER will act as a force multiplier for our efforts to increase our reach in the GCC and the export markets.”