Oman and Etihad Rail Company partner with Al Jazeera Steel Co.
Oman and Etihad Rail Company (OER), and Al Jazeera Steel Products Co. (AJSP) have entered into a Memorandum of Understanding (MoU) to enhance the efficiency of raw material and finished goods transportation. This strategic alliance, guided by General Legal Counsel Iryna Telychko (pictured), aims to establish sustainable and cost-effective supply chain solutions for Al Jazeera Steel’s operations in Oman.
As part of the agreement, OER will leverage the UAE-Oman Rail Network to optimize inbound and outbound logistics for Al Jazeera Steel’s factories. The MoU, signed by Eng. Mohammed bin Zahran Al Mahruqi, Deputy CEO of OER, and Venkat A.N, CEO of AJSP, underscores the transformative potential of the railway network as a key driver of regional trade and economic prosperity.
This collaboration underscores the significance of the railway network as a vital component of the regional transport and logistics infrastructure, attracting commercial clients and international companies alike. It is poised to enhance long-term economic relations and operational sustainability, aligning with both countries’ net-zero strategies.
The joint railway network is anticipated to reduce reliance on automobiles and trucks, facilitating a transition towards a low-carbon future. It is expected to set a new industry standard by promoting eco-conscious industrial practices.
Once operational, the UAE-Oman Rail Network will revolutionize freight movement by slashing travel time between the two countries and mitigating delays caused by weather and traffic conditions. With each train capable of transporting up to 15,000 tonnes of freight, the network will link five major ports and over 15 integrated freight facilities in the UAE and Oman seamlessly.
In recent developments, the Board of Directors of OER convened in Muscat to discuss project milestones. Progress in preliminary works, tendering processes for various segments, innovative engineering solutions, and partnerships for integrated logistics solutions were among the key highlights of the meeting.