Oman and Etihad Rail Company (OERC), the developer and operator of the UAE-Oman Rail Network, has signed a MoU with Emirates Steel Arkan, the largest steel and building materials manufacturer in the UAE, to facilitate the export of raw materials from the sultanate to the UAE.
Under this agreement, OERC will provide logistics solutions to manage the transportation of raw limestone, which Emirates Steel Arkan plans to import from Oman to its cement factories in Al Ain, UAE.
The collaboration between OERC and Emirates Steel Arkan creates several benefits, most importantly driving the revenues of the mining industry and increasing investments in Omani quarries.
By connecting ports and manufacturing hubs, the railway network will provide quarrying companies in Oman with direct shipping solutions to export their products to regional markets.
This contributes to achieving the Oman Vision 2040, which aims for a diversified, competitive, and sustainable economy that features unified, modern frameworks, it stated.
Oman and Etihad Rail will provide logistics solutions for Emirates Steel Arkan through annual transportation of 4 to 6 million tonnes of raw materials to Al Ain. This ensures Emirates Steel Arkan can produce and export 2-3 million tonnes of finished goods to regional markets each year, added Ahmed Al Musawa Al Hashemi, the Chief Executive Officer of OER..
Al Ghafri, the CEO of Emirates Steel Arkan, said the collaboration with OERC enhances Emirates Steel Arkan's supply chain capabilities by leveraging the railway network that connects both countries.
