Etihad Rail and Oman Railway Network partner with Vale for eco-friendly iron ore transportation

Etihad Rail and Oman Railway Network partner with Vale for eco-friendly iron ore transportation
© wam.ae

Oman and Etihad Rail Company have signed an MoU with Vale to explore the transportation of iron ore and its derivatives between Oman and the UAE using rail.


Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, has signed a Memorandum of Understanding (MoU) with Vale to explore the use of rail to transport iron ore and its derivatives between the Sultanate of Oman and the UAE, linking Vale's industrial complex at Sohar Port and Freezone to its planned mega industrial complex in the UAE.

This partnership is expected to provide logistical advantages to major international players in various sectors, who will benefit significantly from the competitive advantages and economic incentives of the project. The MoU covers the development of integrated logistics solutions for the transport of iron and its derivatives by rail, which will allow Vale, a leading Brazilian iron ore producer, to export products from Sohar Port and Freezone to future distribution centers.

"The agreement is in line with our desire to continue to work on and establish strategic partnerships with major companies in the United Arab Emirates and the Sultanate of Oman, supporting economic growth, continued development, and investment in both countries,” said Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, Chairman of Oman and Etihad Rail Company.

Headquartered in Brazil, Vale is one of the world's largest mining companies with operations on five continents. The company is a leading producer of iron ore. Vale has supported the development of Brazil's rail network, which spans over 2,000 kilometers and has been operating in Sohar Port and Freezone for 12 years. Its industrial complex in Sohar Port, established in 2011, is the largest industrial investment in the Sultanate. By utilizing rail to transport iron ore products and derivatives between the UAE and Oman, the partnership will provide significant cost savings, faster delivery times, and improved sustainability, contributing to the growth and development of the two countries.

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