Oman and Etihad Rail signs MoU with Al Jazeera Steel Products
The Oman and Etihad Rail Company (OER) signed a memorandum of understanding (MoU) with Al Jazeera Steel Products Company, one of the leading steel structural products and tube manufacturers in the Middle East, for the transport of raw materials and finished products.
The agreement will establish a strategic framework for more efficient, effective and sustainable logistical solutions.
The OER memorandum will enable Al Jazeera Steel Products to use the Omani-UAE railway network to optimise import and export distribution from its factories in the Sultanate of Oman.
The MoU was signed by Mohammed bin Zahran Al Mahruqi, Deputy CEO of OER, and Venkat A.N, CEO of Al Jazeera Steel Products.
Mohammed Al Mahruqi said the partnership confirmed OER’s commitment to providing cost effective and sustainable logistical solutions to its customers in Oman and the UAE. He said the MoU built on the vision of the railway to encourage cross-border commercial activities, linking manufacturing and production centres and import and export points.
Venkat A.N, CEO, Al Jazeera Steel Products, said the MoU would increase the scope of the company’s services to reach the Gulf Cooperation Council countries and other export markets in addition to improving logistical costs.
The agreement underlines the role of the railway network as a pivotal link in the extended transport and logistics chain in the region, attracting commercial customers in both countries, including international companies, building long-term economic relations that drive operational sustainability through the network’s anticipated socioeconomic benefits.
The Omani-Emirati railway network will reduce dependency on cars and trucks between the two countries, drive the transition towards a low-carbon future and support climate neutrality strategies, paving the way for more environmentally friendly practices and establishing new standards in the sector.
Once it begins operating at full capacity, the network will improve the efficiency of freight movement by reducing travel time between the two countries. Each train will be able to transport up to 15,000 tons of goods between five major ports and 15 integrated shipping facilities.