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Oman-UAE Hafeet Rail project signs key logistics and freight wagon deals

The Hafeet Rail project, connecting Oman and the UAE, has signed major agreements for the construction of logistics facilities and the procurement of next-generation freight wagons. The project aims to accelerate cross-border trade and strengthen the regional economy.

Oman-UAE Hafeet Rail project signs key logistics and freight wagon deals

The Hafeet Rail project, a joint venture between Oman Rail, Etihad Rail, and Mubadala, is moving forward with key construction and procurement agreements. Under the project, Larsen & Toubro (L&T) and Power China have been awarded contracts to develop railway logistics facilities in Al Buraimi and Sohar. Additionally, the China Railway Rolling Stock Corporation (CRRC) will supply a state-of-the-art fleet of freight wagons to enhance transport efficiency.

The logistics hubs in Sohar and Al Buraimi will be equipped with cutting-edge technology to optimize freight operations. Designed to handle containers, bulk cargo, and general freight, these facilities will be integrated into multimodal transport networks. The Sohar facility will also include maintenance areas for locomotives and wagons, ensuring long-term operational reliability.

Another key development in the project is a strategic partnership with Emsteel, a leading steel and building materials company. Under this agreement, Hafeet Rail will transport 4.2 million tons of limestone and red shale annually from Oman to the UAE. This 15-year contract aligns with Oman Vision 2040 and the UAE’s Operation 300bn strategy, reinforcing regional industrial growth and supply chain efficiency.

Hafeet Rail continues to invest in advanced rail infrastructure to enhance the reliability and sustainability of freight transport. With cutting-edge rail technology and a strong logistics network, the project aims to strengthen cross-border trade and position Oman and the UAE as key players in the global logistics sector.

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