Oman and Etihad Rail signs MOU with Al Jazeera Steel

Oman and Etihad Rail Company (OER), the developer and operator of the UAE-OMAN Rail Network, signed a Memorandum of Understanding (MOU) with Sohar-based Al Jazeera Steel Products Company. The agreement aims to establish a strategic framework for collaboration on logistics solutions, optimising the transportation of raw materials and finished goods in an efficient, cost-effective, and sustainable manner.

Under the terms of the agreement, OER will utilise the UAEOman Rail Network to support Al Jazeera Steel in optimising inbound and outbound logistics from its factories in Oman.

The MOU was signed by Eng Mohammed bin Zahran al Mahruqi, Deputy CEO of OER, and Venkat AN, CEO of Al Jazeera Steel.

In a press statement, Mahruqi said, “The partnership with Al Jazeera Steel reinforces Oman and Etihad Rail Company’s commitment to providing cost-effective, efficient, and sustainable logistical solutions to customers in Oman and the UAE. The agreement builds on the vision of the Oman and Etihad Railway Project, enhancing cross-border trade activity between the two countries, linking centers of manufacturing and production, and connecting import and export points.”

Venkat AN 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 as well as the export markets. The vision of OER closely matches the vision of Al Jazeera Steel for delivering technologically driven solutions. This collaboration will help us prepare for the challenges of the future and optimize our logistics costs.”

The UAE-OMAN joint railway network will reduce dependence on cars and trucks, driving transformation towards a low-carbon future, supporting both countries’ net-zero strategies and paving the way for more ecoconscious industrial practices, setting a new standard in the sector.

Once fully operational, the UAE-OMAN Rail Network will unlock efficiency in freight movement by reducing travel time between both countries, 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.

In a recent meeting convened in Muscat, the board of directors of OER discussed the achievements of the project, highlighting the progress of preliminary works and the tendering processes for the various segments, the innovative engineering solutions employed, as well as the partnerships formed to establish integrated logistics solutions.

Oman and Etihad Rail Company was established in September 2022 as a joint venture, equally owned by Etihad Rail, the developer, and operator of the UAE National Railway Network, and Oman Rail, the sultanate’s national developer, and operator of the railway network. The goal is to design, build, and operate a railway network linking Sohar Port to the UAE National Rail Network.

The company will lay the groundwork and workplan for the execution of the project, including its financial mechanisms and schedule, overseeing the design, implementation, and operation of the railway network connecting Sohar and Abu Dhabi in line with the standards of the two countries.

Oman and Etihad Rail Company will utilise the UAE-OMAN Rail Network to support Al Jazeera Steel in optimising inbound and outbound logistics from its factories in Oman