Abu Dhabi: Oman and Etihad Rail Company - the developer and operator of the railway network linking the Sultanate of Oman and the United Arab Emirates - have signed a memorandum of understanding with the Vale company to explore opportunities for providing iron ore products transportation services between the Sultanate of Oman and the UAE via railways, and to link the industrial complex of the“Vale company in Sohar Port and the Free Zone with its planned industrial complex in the Emirates.
This memorandum reflects the logistical importance that the project will provide to major international companies in various sectors to take advantage of the competitive advantages and economic incentives of the project.
The memorandum was signed by Ahmed al Masawi al Hashemi, CEO of Oman and Etihad Rail, and Rogerio Nogueira, Business and Product Manager at Vale.
The two parties will work on developing integrated logistical solutions to link the Vale industrial complex in Sohar Port and the Free Zone, to transport its iron products and derivatives to factories and distribution centers, which Vale seeks to develop as part of its future plans in several locations, including the proposed industrial complex in Abu Dhabi.
Suhail bin Mohammed Faraj Faris al Mazrouei, UAE Minister of Energy and Infrastructure and Chairman of the Board of Directors of Oman and Etihad Rail, said that the memorandum comes out of keenness to establish strategic partnerships with major companies in the United Arab Emirates and the Sultanate of Oman to support investment prospects, economic growth, and comprehensive development in the two countries.
Al Hashemi, CEO of Oman and Etihad Rail, said that the memorandum of understanding reflects the interest of potential users to benefit from the Omani-Emirati railway network, and its services, which will be characterized by being faster, more sustainable, reliable, and less expensive.