Oman and Etihad Rail Company (OER), the developer and operator of the UAE-Oman Rail Network, and Al Jazeera Steel Products (AJSP), one of the leading steel structural products and tube manufacturers in the Middle East, signed a Memorandum of Understanding (MoU) to establish a strategic framework for collaboration on logistics solutions for the transportation of raw materials and finished goods in an efficient, cost-effective and sustainable manner.

Under the terms of the agreement, OER will leverage the UAE-Oman Rail Network to support Al Jazeera Steel in optimising inbound and outbound logistics from its factories in Oman.

The MoU was signed by Mohammed Bin Zahran Al Mahruqi, Deputy CEO of OER, and AN Venkat, Chief Executive Officer of Al Jazeera Steel Products.

Al Mahruqi said, “Our partnership with Al Jazeera Steel Product Co reinforces Oman and Etihad Rail Company’s commitment to provide cost-effective, efficient, and sustainable logistical solutions to customers in Oman and the UAE. The agreement builds on the vision of Oman and Etihad Railway Project, and its ability to enhance cross-border trade activity between the two countries, linking centres of manufacturing and production, and connecting import and export points. As a result, we believe this agreement will make a significant contribution in supporting the growth of various industrial sectors within the UAE and Oman.”

Venkat said, “We are delighted to partner with Oman and Etihad Rail Company. We believe this new logistics service provided by OER will act as a force multiplier for our efforts of increasing our reach in the GCC as well the export markets. The vision of OER closely matches the vision of Al Jazeera Steel Products Co for delivering technological driven solutions. This collaboration will help us prepare for the challenges of the future and optimise our logistics costs.”

The agreement showcases the significance of the railway network as a crucial link in the transport and logistics chain spanning the region, attracting several commercial clients in both countries, in addition to international companies operating in the region, and building long-term economic relations that drive operational sustainability, mainly due to the network’s anticipated socioeconomic benefits. The joint railway network will reduce dependence on cars and trucks, and drive transformation towards a low-carbon future, supporting both countries’ net zero strategies, paving the way for more eco-conscious industrial practices, and setting a new standard in the sector.

Once fully operational, the UAE-Oman Rail Network will unlock efficiency in freight movement by reducing travel time between both countries, eliminating delays related to weather and traffic conditions. Each train will be able to seamlessly transport a capacity of up to 15,000 tonnes of freight between five major ports and over 15 integrated freight facilities in both the UAE and Oman.

In recent events, The Board of Directors of OER convened in Muscat. During the meeting, the Board discussed the achievements of the project, highlighting the progress of preliminary works and the tendering processes for the various segments, the innovative engineering solutions employed, as well as the partnerships formed to establish integrated logistics solutions.