Oman-Etihad Rail Company signs logistics agreement with Brazil’s Vale

By Arya M Nair, Official Reporter
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Oman-Etihad Rail Company agreement with Vale
Officials from Oman-Etihad Rail Network & Vale at MoU signing ceremony

Oman-Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, has signed a Memorandum of Understanding (MoU) with Vale, one of the world’s largest mining companies based in Brazil, to explore utilizing rail to transport iron ore and its derivatives between the Sultanate and UAE, connecting Vale’s industrial complex in Sohar Port and Freezone to its planned mega-industrial complex in the UAE.

This agreement reflects the logistical importance that the project will provide to major international players in several different sectors, as they stand to benefit significantly from the competitive advantages and economic incentives of the project.

The signing ceremony was witnessed by Mr. Suhail bin Mohammed Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail Company, and Ms. Elaina Zugaib, Brazilian Ambassador to the UAE. The MoU was signed by Mr. Ahmed Al Musawa Al Hashemi, CEO of the Oman and Etihad Rail Company, and Mr. Rogerio Nogueira, Director of Business Development at Vale.

Under the agreement, both parties will work to develop integrated logistics solutions that connect Vale’s industrial complex in Sohar Port and Freezone and transport the company’s iron ore products and derivatives between the company’s Sohar hub and various factories and distribution centers.

Ahmed Al Musawa Al Hashemi_Oman-Etihad Rail Company agreement with Vale
Ahmed Al Musawa Al Hashemi
Oman & Etihad Rail Company

“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, utilizing rail as a primary means of transportation for its logistical operations. The MoU highlights the interest of potential users in utilizing the UAE-Oman Railway Network and benefiting from its fast, sustainable, reliable, and cost-effective services.”

Mr. Al Mazrouei said that “The agreement is in line with our desire to continue to work on and establish strategic partnerships with major companies in the United Arab Emirates and the Sultanate of Oman, supporting economic growth, continued development and investment in both countries.”

Commenting on the MoU, Mr. Nogueira, said that the agreement supports Vale’s plans to develop industrial complexes in the UAE and Oman to produce low-carbon products for the steelmaking industry.

The company is a top producer of iron ore. Vale supported the development of Brazil’s railway network, which spans over 2,000 kilometers and has been operating in Sohar Port and Freezone for 12 years.

Related: ADNOC L&S launches world-scale integrated logistics services platform