Muscat – In a major development towards enhancing regional logistics and trade, Hafeet Rail has signed a few key agreements to advance the Oman-UAE railway project.

On Thursday, the company announced a long-term commercial partnership with EMSTEEL, alongside awarding construction contracts to different international firms, marking a crucial step in building a world-class rail network connecting the two nations.

Hafeet Rail signed a ‘Heads of Terms Agreement’ with EMSTEEL, one of the region’s largest steel and building materials manufacturers, to facilitate the transportation of limestone and red shale from Oman to the UAE. Under this agreement, the railway will handle an annual freight volume of 4.2mn tonnes over a 15-year term, ensuring a seamless supply chain for critical raw materials.

“This agreement is a significant step forward for EMSTEEL as it ensures a reliable and sustainable supply chain for our cement unit,” said Eng Saeed Ghumran al Remeithi, Group CEO of EMSTEEL.

The project aligns with Oman Vision 2040 and the UAE’s Operation 300bn initiative, supporting sustainable economic growth and reinforcing the region’s position as a trade and logistics hub.

Ahmed bin Ali al Bulushi – Hafeet Rail’s board member and CEO of Asyad Drydock and Infrastructure Services – said that these contracts would enhance the technical and commercial capabilities of the network while reinforcing seamless integration between local industries and regional markets.

“By fortifying cross-border connectivity, we are unlocking unprecedented trade potential and positioning the region as a logistical powerhouse in the global economy.”

To further the project’s implementation, Hafeet Rail has awarded construction contracts to Larson & Toubro (L&T) and Power China for the development of key railway facilities in Oman. These state-of-the-art facilities, to be constructed in Buraimi and Suhar, will enhance freight handling for bulk, containerised, and breakbulk cargo, ensuring multimodal connectivity and operational efficiency.

The Suhar facility will also include maintenance provisions for locomotives and wagons, strengthening the railway’s long-term reliability.

In addition, China Railway Rolling Stock Corporation (CRRC) has been contracted to supply a fleet of advanced freight wagons designed for multi-modal adaptability.

These wagons will optimise the movement of varied cargo types, enhancing network agility and sustainability.

Ahmed al Musawa al Hashemi, CEO of Hafeet Rail, described the agreements as a transformative step. “This initiative strengthens the UAE and Oman’s positions as key trade and logistics hubs, fostering greater economic diversification, industrial expansion, and cross-border investment.”

By aligning with national economic priorities, he said, Hafeet Rail is building a high-impact transport corridor that is to enhance regional competitiveness and stimulates sustainable growth.

The Oman-UAE railway project is poised to redefine the region’s logistics landscape, offering reliable rail-based freight solutions to reduce supply chain risks and support industrial growth. With a focus on economic integration and long-term value creation, the project aims to unlock new trade opportunities and cement the region’s standing in global trade corridors.