Sohar,  Oman – Oman and Etihad Rail Company (OER), the developer and operator of the UAE-Oman Rail Network, and Al Jazeera Steel Products Co (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 optimizing inbound and outbound logistics from its factories in Oman.

The MoU was signed by Eng. Mohammed bin Zahran Al Mahruqi - Deputy CEO of OER, and Venkat A.N -CEO of Al Jazeera Steel Products.

Mohammed Al Mahruqi, Deputy CEO of OER, 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 centers 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 A.N, CEO, Al Jazeera Steel Product Co, 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 optimize 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.

About Oman and Etihad Rail Company:

Oman and Etihad Rail Company was established in September 2022, as a joint venture, equally owned by Etihad Rail, the developer and operator of the UAE National Railway Network, and Oman Rail, Sultanate’s national developer and operator of railway network, with the goal of designing, building, and operating a railway network that links Sohar Port to the UAE National Rail Network.

The company will lay the groundwork and workplan for the execution of the project, including its financial mechanisms and schedule, and thus overseeing the design, implementation, and operation of the railway network, which connects Sohar and Abu Dhabi, in line with the standards of the two countries.

About Al Jazeera Steel Co:

Al Jazeera Steel Products Co established in 1996, is a well-known steel producer listed in the Muscat Stock Exchange. The company operates a 600KT per annum Tubes and Merchant bar mills in Suhar, Oman. The company is currently upgrading its production facilities in Suhar. The company is also setting up a new medium section mill in Kezad, Abu Dhabi with state-of-the-art technology. This will also be the GCC’s first rolling mill capable of producing rails. The expansion will significantly enhance the company’s offering to the construction, oil & gas and infrastructure sectors in the region and beyond.

For more information, please visit our website: www.jazeerasteel.com  

For more information, please contact:
Etihad Rail Communications Department
Email: media@etihadrail.ae
Website: www.etihadrail.ae  
Or
Mustapha Al Tayech
Email: mustapha.altayech@hkstrategies.com