Oman: Hafeet Rail and Brazil's Itaminas ink pact for iron ore logistics solutions
Oman - Hafeet Rail, the cross-border railway developer connecting Oman and the UAE, has signed an agreement with Itaminas Comércio De Minérios S.A., one of Brazil's leading iron ore producers marks a pivotal strategic move towards enabling an integrated, and sustainable logistics ecosystem leveraging the Hafeet Rail network to link key ports and industrial zones, boost logistical efficiency and bolster the iron ore and steel production industry in both nations.
The collaboration also aims to cultivate a robust and efficient supply chain solution powered by Hafeet Rail's cutting-edge infrastructure and connectivity, particularly Sohar Port's rail-connected facilities and crucial role in iron ore import and value-added processing, thanks to its established advanced infrastructure, ongoing expansion plans, and seamless integration with the Hafeet Rail network.
Construction on the Hafeet Rail project is advancing in both Oman and the UAE, where groundwork and railbed preparation are well underway and structural works on major bridges and tunnels have begun, paving the way for seamless connectivity between the two nations.
The project's ongoing development reflects close and strong coordination between stakeholders and local authorities, ensuring the achievement of this vital cross-border project's objectives.
Itaminas specializes in high-grade iron ore production, currently boasting an annual output of 6.5 million tons, with environmental permits allowing for an expansion to 15.5 million tons annually.
The company plans to export a significant share of this production to the Middle East via Brazil's Port of Sudeste, reinforcing its ambition to play a major role in the region's iron and steel sector. As part of its long-term growth strategy, Itaminas is actively exploring the establishment of segments of its value chain in the GCC, capitalizing on the region's infrastructure, energy resources, and strategic location.
This collaboration reinforces the growing integration between Oman and the UAE while exploring how Hafeet Rail's cross-border network can support potential industrial developments across both countries, enabling a seamless logistics corridor that links ports with inland processing facilities serving both global and regional steel players seeking efficient, sustainable, and scalable logistics solutions for their operations in the region.
Hafeet Rail is a joint venture between Etihad Rail, ASYAD Group, and Mubadala Investment Company. Hafeet Rail is the first regional cross-border railway network, connecting the Sultanate of Oman and the United Arab Emirates to enhance economic growth and improve the efficiency of the transportation sector in the region. www.hafeetrail.com
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