USD 3 billion for UAE-Oman rail network

USD 3 billion for UAE-Oman rail network
@etihadrail.ae

Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, have signed a cooperation agreement with Mubadala Investment Company, a sovereign wealth fund in Abu Dhabi, to support the development of the 303 km rail network linking Oman and the UAE, with a total investment value of USD 3 billion.


According to Etihad Rail Company, the UAE-Oman rail network will reduce the overall cost of supply chains through increased efficiency compared to other modes of transport. The network will also enhance the competitiveness of both countries in global trade and cement their position as logistics hubs serving as gateways to regional markets.

“The establishment of the Oman-Etihad rail network is an extension of the strategic relations and strong historical ties between the UAE and the Sultanate of Oman, and the foundation of the strong partnership between Etihad Rail and Oman Rail. The joint venture will transform the infrastructure, transport, and logistics sectors, and enhance commercial movement and social cohesion, by linking economic, industrial, commercial, and residential centers through the railway network," said Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company.

The network will apply the highest international safety, security and environmental standards to provide safe and fast passenger and freight services. Passenger trains will travel at speeds of up to 200km per hour, reducing the journey time between Sohar and Abu Dhabi to 100 minutes.

Bakheet Al Katheeri, Executive Director of the UAE Industries Unit at Mubadala's UAE Investments platform, commented: "The MoU signed between Mubadala and Oman and Etihad Rail Company is designed to explore and unlock new opportunities in the infrastructure, transport and logistics sectors. The strategic partnership with Oman and Etihad Rail Company aims to promote economic development and cooperation between the two countries and create value for all stakeholders."

Ahmed Al Musawa Al Hashemi, CEO of Oman and Etihad Rail Company, added that the rail network between Oman and the UAE is of strategic importance as it will be a valuable addition to the logistics services sector in both countries, helping to increase their competitiveness in the market by reducing the overall cost of the supply chain.

Join Our Circle of Insiders: Receive the Weekly Digest That Keeps You Ahead!

Not using RAILVIS Platform yet?

Rent a wagon, sell a locomotive, find a container, convert free capacity to profit. The RAILVIS Platform is the tool you need. It's faster, better organized, and more secure than email or phone calls.

Try RAILVIS Railway Marketplace
RAILVIS screenshot

Related

Featured