Oman and Etihad Rail sign MoU with Vale to transport products from SOHAR Port to regional markets
Oman and Etihad Rail, the developer and operator of the railway network linking Oman and the UAE, have signed a Memorandum of Understanding (MoU) with Vale, one of the world's largest mining companies, to explore opportunities to provide rail transport of iron ore products between Oman and the UAE, linking Vale's industrial park at SOHAR Port and Free Zone with its planned industrial park in the UAE.
The MoU reflects the logistical importance that the project will provide to major international companies in various sectors to benefit from the competitive advantages and economic incentives of the project.
The MoU was signed by His Excellency Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail, and Her Excellency Eliana Zgheib, Ambassador of Brazil to the UAE, and was signed by Ahmed Al Masawi Al Hashemi, CEO of Oman and Etihad Rail, and Rogerio Noguera, Director of Business and Products at Vale.
Under the MoU, the two parties will develop integrated logistics solutions to connect Vale's industrial park at SOHAR Port and Free Zone to transport its steel and steel products to factories and distribution centers that Vale seeks to develop as part of its future plans in several locations, including the proposed industrial park in the Emirate of Abu Dhabi.
His Excellency Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure and Chairman of Oman and Etihad Rail, said: "The signing of the MoU stems from our keenness to establish strategic partnerships with major companies in the UAE and the Sultanate of Oman, to support investment prospects, economic growth and comprehensive development in both countries.
Ahmed Al Masawi Al Hashemi, Chief Executive Officer of Oman and Etihad Rail, said: "We are proud to establish partnerships with major international companies such as Vale, which has a long history and extensive global experience in the steel industry, and relies on railways as a key means of transport in its logistics operations.
"The MoU we signed with Vale reflects the interest of potential users to benefit from the Omani-UAE railway network and its services that will be faster, more sustainable, reliable and less costly.
Rogerio Noguera, Director of Business and Products at Vale, said that the agreement reinforces Vale's plans to develop industrial parks in the UAE and Oman to produce low-carbon products used in the steel industry, explaining that Vale's partnership with Oman and Etihad Rail confirms the logistical progress made at the regional level, which enables a wide range of economic and commercial activities and provides various benefits, including the creation of new jobs and the provision of high-quality transport solutions.
Vale is one of the world's largest mining companies, headquartered in Brazil, with a presence on five continents, and is a leader in iron production.
Vale has been developing Brazil's rail network of more than 2000,12 kilometres, in addition, Vale has been operating in SOHAR Port and Free Zone for 2011 years, establishing its huge industrial park in SOHAR Port and Free Zone in <>, making it Oman's largest industrial investment.