Hafeet Rail signs agreement to advance steel industry supply chain
ONA: Hafeet Rail, the developer of the cross-border railway project between the Sultanate of Oman and the United Arab Emirates, has signed a cooperation agreement with Itaminas Comércio de Minérios, one of Brazil's leading iron ore producers.
This agreement marks a strategic step toward establishing an integrated and sustainable shipping system by leveraging Hafeet Rail's network to connect major ports and industrial zones. The initiative aims to enhance logistical efficiency and support the iron and steel industry in both countries.
The collaboration will develop a reliable and efficient transport network utilizing Hafeet Rail's modern infrastructure and capitalize on the pivotal role of Sohar Port in importing and processing iron ore. Sohar Port, with its advanced facilities and expansion plans, is well-positioned to support this initiative. Its integration with the Hafeet Rail network further strengthens the logistics corridor.
Construction of the Hafeet Rail project is progressing rapidly along the railway route between Oman and the UAE, with groundwork, leveling, and site preparation underway. Major bridge and tunnel construction has also commenced, paving the way for seamless connectivity between the two nations.
This progress reflects strong coordination between relevant authorities and local governments, supporting the achievement of strategic objectives for this cross-border project.
Itaminas, which currently produces 6.5 million tons of high-quality iron ore annually, has environmental permits allowing for expansion up to 15.5 million tons. The company plans to export a significant portion of its output to the Middle East via Brazil's Sudeste Port, reinforcing its presence in the regional iron and steel sector.
Itaminas is also exploring the possibility of establishing parts of its value chain in GCC countries, taking advantage of the region's infrastructure, energy resources, and strategic location.
This cooperation underscores the deepening integration between Oman and the UAE. It highlights the potential of the Hafeet Rail network to support future industrial projects by creating an integrated logistics corridor linking ports to industrial and commercial hubs. The initiative is poised to serve global and regional steel companies seeking efficient, sustainable, and scalable logistics solutions in the region.— ONA
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