The Oman and Etihad Rail Company (OERC), responsible for developing and operating the railway network connecting the UAE and Oman, inked a memorandum of understanding (MoU) on Monday with the UAE’s largest steel and building materials manufacturer, Emirates Steel Arkan, to streamline the transportation of raw materials from Oman to the company’s facilities in Al Ain, UAE.
Bolstering regional trade
Under the agreement, OERC will provide reliable logistics solutions to efficiently transport four to six million tonnes of raw limestone imported from Oman, enabling the manufacturer to produce and export two to three million tonnes of finished goods to regional markets annually.
The collaboration is expected to present a host of benefits, by boosting the revenues of the mining industry and attracting investments to Omani quarries.
By connecting key ports and manufacturing hubs, the railway network will provide Omani quarrying companies with direct shipping solutions, enabling them to export their products to regional markets.
This also contributes to realising the Oman Vision 2040 objectives of fostering a diversified, competitive, and sustainable economy through unified modern frameworks.
“This agreement represents the vision for this project, which was launched to link the sultanate 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,” OERC CEO Ahmed Al Musawa Al Hashemi said, highlighting that this partnership would create promising and sustainable business opportunities for the mining industry and the construction materials sector in both Oman and the UAE.
On his part, Emirates Steel Arkan’s CEO, Saeed Khalfan Al Ghafri, emphasised the partnership’s role in enhancing the company’s supply chain capabilities. “This agreement paves the way for integrated logistics solutions for the transportation of raw materials to and from our cement plant in Al Ain, boosting our operational efficiency and cost-effectiveness, and reducing environmental impact. Furthermore, this enhances our transport infrastructure and reinforces cross-border supply chains,” he said.
In August, OERC invited specialised contractors to submit prequalification bids for the freight facilities, depots, and stations to interlink the two GCC states.
