Oman and Etihad Rail team up with Emirates Steel Arkan to transport raw materials

Oman and Etihad Rail team up with Emirates Steel Arkan to transport raw materials

The collaboration focuses on streamlining the transportation of raw materials, particularly raw limestone, from Oman to the UAE's largest steel and building materials manufacturer.

In a move that strengthens cross-border trade and enhances supply chain capabilities, Oman and Etihad Rail Company (OER), the developer of the UAE-Oman Rail Network, have signed a Memorandum of Understanding (MoU) with Emirates Steel Arkan, the UAE's largest steel and building materials manufacturer. This agreement will facilitate the export of raw materials from Oman to the UAE, further strengthening the economic ties between the two countries.

The partnership between OER and Emirates Steel Arkan involves the annual transportation of 4 to 6 million tonnes of high-quality raw materials from Oman to Al Ain. This will enable Emirates Steel Arkan to produce and export 2-3 million tonnes of finished goods to regional markets each year, contributing to the economic development of both nations.

As well as improving supply chain efficiency, the collaboration will increase revenues for the mining industry and encourage investment in Omani quarries. The rail network will provide efficient shipping solutions for Oman's quarrying companies, promoting the export of their products to regional markets and aligning with the goals of Oman Vision 2040. In addition, the agreement underlines the importance of the rail network as a vital link in the transport and logistics chain in the region. It is expected to attract businesses and international companies, foster long-term commercial partnerships, and contribute to sustainable economic growth.

“This agreement paves the way for integrated logistics solutions for the transportation of raw materials to and from our cement plant in Al Ain, boosting our operational efficiency and cost-effectiveness, and reducing environmental impact. Furthermore, this enhances our transport infrastructure and reinforces cross-border supply chains,” Saeed Khalfan Al Ghafri, CEO of Emirates Steel, an Emirates Steel Arkan company.

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