Oman-Etihad Rail signs pact to transport steel exports

Oman and Etihad Rail Company

Oman and Etihad Rail Company has agreed a deal to transport steel on its rail network between the sultanate and the UAE.

The developer and operator of the $3 billion railway line, has agreed to carry steel products from Oman-based Jindal Shadeed Iron & Steel’s (Jindal) steel complex to the UAE.

The steel producer will transport up to four million tonnes of raw materials and finished products annually from its complex at Sohar Port through the rail route. 

• UAE-Oman rail link to bring cross-border economic boost
• Oman and UAE explore transport of minerals by rail
• GCC on track to be linked by rail in next 10 years

Under the terms of the agreement, Oman and Etihad Rail will support Jindal by facilitating loading and unloading processes while guaranteeing rolling stock and facilities’ requirements of iron ore and steel.

Harsha Shetty, CEO of Jindal, said the company’s ability to transport nearly four million tonnes of raw material will significantly help its operations and reduce its carbon footprint.

Using the Oman-UAE rail network, the collaboration aims to reduce CO2 emissions in both Oman and the UAE, in line with their national goals of achieving net-zero carbon emissions by 2050.

Oman and Etihad Rail Company in May signed an agreement with Brazilian mining firm Vale to explore transporting iron ore and its derivatives by rail from its industrial complex in Sohar Port and Freezone.

Oman is expected to be the first country to link up with the UAE through a Sohar Port to Al Wathra Link, Ed James, head of content and analysis at Meed, said at a webinar on the Mena Rail and Metro Projects Market in June.

The GCC governments are preparing to hand out $167 billion worth of contracts to link the six member countries by railway.

“We should expect to see some significant contracts awarded on the railway to link all the GCC states over the next 24 to 26 months,” he added.