Oman and Etihad Rail teams up with Emirates Steel Arkan to boost trade

Oman and Etihad Rail Company, the developer and operator of the train network linking Oman and the UAE, has signed an initial agreement with Emirates Steel Arkan, the Emirates' largest public steel and building materials business, to boost the export of raw materials from Oman to the UAE.

Under the agreement, Oman and Etihad Rail Company will offer logistical solutions to manage the transportation of raw limestone from Oman to Emirates Steel Arkan’s cement factories in Al Ain.

It will create sustainable business opportunities for the mining industry and the construction materials production sector in both countries, said Ahmed Al Hashemi, chief executive of Oman and Etihad Rail.

“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/export points,” Mr Al Hashemi said.

Oman and Etihad Rail will provide the annual transportation of four to six million tonnes of high-quality raw materials to Al Ain, the bodies said in a joint statement.

It will ensure Emirates Steel Arkan can produce and export two to three million tonnes of finished goods to regional markets each year, they added.

“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,” said Saeed Al Ghafri, chief executive of Emirates Steel, an Emirates Steel Arkan company.

The transport link between the UAE and Oman, which was first announced in September last year, is aimed at bolstering trade and tourism between the two countries and the region.

The rail line will serve passenger and freight trains. Passenger services will run at up to 200kph, with freight trains reaching 120kph.

It will reduce journey times between Abu Dhabi and Sohar, to the north of Muscat, to 100 minutes, and trips from Sohar to Al Ain to 47 minutes. Plans include connecting the UAE's existing freight services line to Sohar, the sultanate's deep-sea port.

The railway is also expected to boost industrial sectors in the UAE, which has launched several programmes to boost its contribution to the economy.