Oman and Etihad Rail ink logistics deal with mining giant Vale
The deal will allow Vale to export products from Sohar Port to future distribution centres
Abu Dhabi: Oman and Etihad Rail Company has signed an MoU with Brazilian mining giant Vale to explore using rail to transport iron ore and its derivatives between Oman and the UAE.
Under the terms of the agreement, both parties will work to develop integrated logistics solutions that connect Vale’s industrial complex in Sohar Port and Freezone and transport the company’s iron ore products and derivatives between the company’s Sohar hub and various factories and distribution centers.
Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, Chairman of Oman and Etihad Rail Company, said, “The agreement is in line with our desire to continue to work on and establish strategic partnerships with major companies in the United Arab Emirates and the Sultanate of Oman, supporting economic growth, continued development and investment in both countries,.”
“The MoU highlights the interest of potential users in utilizing the UAE-Oman Railway Network and benefiting from its fast, sustainable, reliable, and cost-effective services,” said Ahmed Al Musawa Al Hashemi, CEO of the Oman and Etihad Rail Company.
Vale, headquartered in Brazil, is one of the largest mining companies globally, operating in five continents. The company is a top producer of iron ore. Vale supported the development of Brazil’s railway network, which spans over 2,000 kilometers, and has been operating in Sohar Port and Freezone for 12 years. Its industrial complex in Sohar Port, established in 2011, is the largest industrial investment in the Sultanate.