Abu Dhabi: Oman and Etihad Rail Company has entered into a Memorandum of Understanding (MoU) with Vale, a leading global mining company in a move aimed at bolstering transportation infrastructure and fostering international collaboration.
The agreement focuses on exploring the potential utilization of rail networks for the efficient transport of iron ore and its derivatives between Oman and the UAE. The rail link will connect Vale’s industrial complex in Sohar Port and Freezone to its planned mega-industrial complex in the UAE.
The signing ceremony took place in the presence of Mr. Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, along with Ms. Elaina Zugaib, the Brazilian Ambassador to the UAE. Mr. Ahmed Al Musawa Al Hashemi, CEO of the Oman and Etihad Rail Company, and Mr. Rogerio Nogueira, Director of Business Development at Vale, signed the MoU on behalf of their respective organizations.
Mr. Al Hashemi stated that, “We are proud to partner with a leading international company like Vale, which has a long history and extensive global experience in the production of iron, utilising rail as a primary means of transportation for its logistical operations. The MoU highlights the interest of potential users in utilising the UAE-Oman Railway Network and benefiting from its fast, sustainable, reliable, and cost-effective services.”
Under the terms of the agreement, both parties will collaborate to develop integrated logistics solutions that streamline the transportation of Vale’s iron ore products and derivatives. This will involve connecting Vale’s industrial complex in Sohar Port and Freezone with various factories and distribution centers. Vale, a renowned Brazilian mining company operating across five continents, has a long-standing track record of excellence as a top producer of iron ore. It has played a pivotal role in supporting the development of Brazil’s extensive railway network, spanning over 2,000 kilometers.
Vale’s industrial complex in Sohar Port, established in 2011, represents a significant investment in Oman, serving as the largest industrial venture in the Sultanate. With over 12 years of operation in Sohar Port and Freezone, Vale brings valuable expertise and experience to the collaboration.
The MoU signifies the strategic importance of the project, as it offers major international players in various sectors the opportunity to benefit from enhanced logistics capabilities, competitive advantages, and attractive economic incentives. By leveraging rail transportation, this partnership aims to optimize the movement of iron ore and derivatives, promoting efficient trade and facilitating the growth of Vale’s operations in the region.
The collaborative efforts between Oman and Etihad Rail Company, Vale, and other stakeholders underscore the commitment to advancing infrastructure development and fostering cross-border connectivity. This initiative is set to create a strong foundation for sustained economic growth and facilitate increased trade between Oman and the UAE.