Under the terms of the agreement, the new company will establish the project's framework and work plan, including its financial mechanisms and timetable.
The railway will extend 303 km from Sohar to the Emirate of Abu Dhabi. It will connect to the UAE National Rail Network and its stations throughout the country.
Passenger trains will reach 200 km/h and will travel between Sohar and Abu Dhabi in 100 minutes and between Sohar and Al Ain in 47 minutes. Freight trains will travel at up to 120 km/h.
According to Gulf Business News, the agreement will allow Jindal Shadeed Iron & Steel company to transport up to 4 million tonnes of raw materials and finished products annually from its steel complex at Sohar Port to the UAE.