Oman Rail and Etihad Rail sign landmark agreement to build $3 billion cross-border railway

Marketa Horpeniakova, Published on 29/09/2022
Oman Rail and Etihad Rail sign landmark agreement to build $3 billion cross-border railway

The newly created entity will develop and operate a rail network that will connect Sohar Port with the UAE National Rail Network.

Oman Rail has signed an agreement with Etihad Rail to jointly establish the Oman-Etihad Rail Company with equal shareholdings. The newly created entity will invest $3 billion to construct and operate a rail network that will link Sohar Port in Oman and Abu Dhabi in the UAE. The new railway network will be built in accordance with the standards of both countries.

The long-awaited 303-km railway will feature the best international safety, security, and environmental standards, to provide faster and safer passenger and freight transport.  The new line will reduce the travel time of passenger trains between Sohar and Abu Dhabi to 1 hour and 40 minutes. With trains running at 200 kilometers per hour, the travel time between Sohar and Al Ain will be only 47 minutes in the future. The new line will also benefit rail freight traffic, as freight trains will be able to travel on it at speeds of up to 120 kilometers.

“The envisioned network will complement our comprehensive set of ports and logistics assets, augment our competitiveness and open faster access to global markets,” said Abdulrahman Salim Al Hatmi, Group CEO of Asyad (of which Oman Rail is a part).

The cooperation between Oman Rail and Etihad Rail aims to create new opportunities in infrastructure, transport, and logistics by connecting key urban centers in both countries via rail. The rail network between the Sultanate of Oman and the United Arab Emirates will support the growth of the national economies of both countries, as well as improve the efficiency of the supply chain, facilitate cross-border trade, create employment opportunities across sectors and, more broadly, the project will boost tourism activities between Oman and the UAE.

“We are delighted to start this partnership with Oman Rail, which heralds a new chapter of collaboration and prosperity between both countries. The agreement outlines a strategic roadmap for a sustainable project which will contribute to bolstering the solid relations between the UAE and Oman, and will play an instrumental role in facilitating national and regional trade by connecting the UAE National Rail Network with Sohar Port,” commented Shadi Malak, CEO of Etihad Rail.



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