Hafeet Rail has signed three contracts which will ensure and facilitate rail Oman – UAE railway transport.
Construction contracts for key railway facilities in Oman were awarded to Larson & Toubro (L&T) and Power China, while the China Railway Rolling Stock Corporation (CRRC) has been contracted to supply a cutting-edge fleet of freight wagons. In addition, a commercial agreement was signed with Emsteel to facilitate the transport of aggregate materials between Oman and the UAE.
These agreements mark a significant milestone in the implementation of the Oman-UAE railway project, reinforcing logistics integration, cargo efficiency, and sustainable economic growth across both nations.
Larson & Toubro (L&T) and Power China will build state-of-the-art railway logistics facilities in Al Buraimi and Sohar. Designed to meet global freight handling standards, these facilities will secure seamless transport and handling of bulk, containerised, and breakbulk cargo, enhancing throughput efficiency and multimodal connectivity.
Additionally, the Sohar facility will include provisions for locomotive and wagon maintenance, ensuring long-term asset reliability, optimised operational performance, and enhanced network resilience, strengthening Oman’s role as a key hub in global trade corridors.
China Railway Rolling Stock Corporation (CRRC) will be responsible for the design, engineering, and supply of a next-generation of high-performance freight wagons. Designed for multi-modal adaptability, these wagons will seamlessly integrate into the Hafeet Rail network, optimising cargo movement for varied freight types, including bulk commodities and containerised cargo.
In October 2024, Hafeet Rail awarded Progress Rail a contract to deliver 27 heavy-haul freight locomotives.
This contract reflects Hafeet Rail’s commitment to redefining rail freight efficiency, leveraging cutting-edge rolling stock technology to enhance capacity, network agility, and long-term operational sustainability.
By investing in advanced rail solutions, Hafeet Rail is reinforcing its position as a key enabler of logistics innovation and trade connectivity in the region.
Under the agreement with Emsteel, one of the largest publicly traded steel and building materials manufacturers in the region, long-term partnership is established to ensure the seamless transport of limestone and red shale. Thus, Hafeet Rail will transport limestone and red shale from Oman to the UAE, with an annual freight volume of 4.2 million tonnes over a 15-year term, extendable based on future demand.
This collaboration underscores Hafeet Rail’s commitment to redefining rail freight efficiency, leveraging cutting-edge rolling stock technology to enhance capacity, network agility, and long-term operational sustainability.
This strategic collaboration aligns with Oman Vision 2040 and the UAE’s National Strategy for Industry and Advanced Technology (Operation 300bn), reinforcing secure, high-efficiency supply chains for critical raw materials.
These contracts and agreements reflect Hafeet Rail’s commitment to developing an integrated, high-performance Oman – UAE railway network, designed to enhance trade flows, optimize supply chain efficiency, and drive economic diversification. Through strategic investments in infrastructure, rolling stock, and cross-border partnerships, the company is laying the foundation for a more resilient and competitive logistics sector in the region.
“The signing of these agreements represents a transformative step in advancing economic integration between the UAE and Oman. This strategic initiative strengthens both nations’ positions as key trade and logistics hubs, fostering greater economic diversification, industrial expansion, and cross-border investment,” Ahmed Al Musawa Al Hashemi, the CEO of Hafeet Rail, said.
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