Hafeet Rail has taken a significant step toward strengthening cross-border rail freight logistics by signing a commercial agreement with EMSTEEL to facilitate the transportation and export of aggregate materials between Oman and the UAE.
In addition, key construction contracts for railway facilities in Oman have been awarded to Larson & Toubro (L&T) and Power China, while China Railway Rolling Stock Corporation (CRRC) will supply a fleet of advanced freight wagons.
These developments mark a crucial milestone in the Oman-UAE railway project, supporting improved logistics integration, cargo movement efficiency, and economic growth between the two nations.
Strengthening Cross-Border Freight Transport
Under a long-term agreement with EMSTEEL, Hafeet Rail will transport 4.2 million tons of limestone and red shale annually from Oman to the UAE for the next 15 years, with potential extensions based on future demand. This collaboration aligns with Oman Vision 2040 and the UAE’s Operation 300bn strategy, ensuring a high-efficiency supply chain for raw materials essential to industrial growth.
Hafeet Rail has partnered with L&T and Power China to construct modern railway logistics facilities in Al Buraimi and Sohar, designed to handle bulk, containerized, and breakbulk cargo. These hubs will play a key role in streamlining multimodal connectivity and ensuring smooth freight movement.
Additionally, Sohar’s facility will include locomotive and wagon maintenance provisions, securing long-term operational efficiency and reinforcing Oman’s role in global trade corridors.
As part of its commitment to efficient rail freight solutions, Hafeet Rail has awarded a contract to CRRC for the design and supply of next-generation freight wagons. These wagons will be optimized for multi-modal adaptability, capable of transporting both bulk commodities and containerized cargo efficiently.
The latest agreements complement Hafeet Rail’s broader infrastructure roadmap, which includes civil works, signalling and control systems, locomotive procurement, and independent safety assessments. These advancements aim to strengthen supply chain resilience, minimize logistical risks, and support the economic diversification goals of Oman and the UAE through a reliable rail-based freight network.
Ahmed bin Ali Al Bulushi, Board Member of Hafeet Rail and CEO of Asyad Drydock & Infrastructure Services, highlighted the impact of these agreements, stating: “These contracts reinforce the seamless integration between local industries and regional markets, optimizing supply chain efficiency and trade competitiveness.”
Ahmed Al Musawa Al Hashemi, CEO of Hafeet Rail, emphasized the broader significance of the project, stating: “This railway will unlock new trade routes, optimize freight operations, and enhance regional competitiveness, creating long-term economic value.”
