Hafeet Rail Secures Major Contracts for UAE-Oman Railway Project
Deal News | Feb 07, 2025 | Zawya
Hafeet Rail, a joint venture among Oman Rail, Etihad Rail, and Mubadala, has inked significant construction, procurement, and commercial agreements to further the UAE-Oman railway project. This ambitious logistics endeavor will be supported by a design and build contract with Larsen & Toubro and Power China, aimed at developing advanced railway logistics facilities in Al Buraimi and Sohar. Additionally, CRRC has been selected to design and supply modern freight wagons capable of multimodal deployment. Although financial specifics were not disclosed, the agreements are expected to play a pivotal role in boosting the technical and commercial capabilities of the railway network, leading to improved regional competitiveness. A crucial heads of terms agreement was struck with EMSTEEL to transport limestone and red shale from Oman to the UAE, guaranteeing substantial freight volumes over 15 years. Senior executives from Hafeet Rail and EMSTEEL emphasized the strategic value of these contracts in reinforcing local and regional integration with global standards. These developments follow previous contracts for civil infrastructure and system procurements aimed at ensuring operational safety and efficiency.
Sectors
- Transportation and Logistics
- Construction and Engineering
- Manufacturing
Geography
- United Arab Emirates – The UAE is a key geographical focus as it is directly involved in the railway project and the destination for transported material.
- Oman – Oman is pivotal as the starting point of the railway project and the origin of the materials to be transported.
- China – China is included due to the participation of companies like Power China and CRRC in the project.
Industry
- Transportation and Logistics – The article revolves around the development of a railway project intended to enhance logistics and transportation between the UAE and Oman.
- Construction and Engineering – The collaboration with Larsen & Toubro and Power China for building railway facilities highlights the focus on construction and engineering sectors.
- Manufacturing – Involvement of CRRC in supplying freight wagons indicates participation from the manufacturing industry.
Financials
- Not disclosed – Contract values and procurement costs for the project were not provided.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Hafeet Rail | Project Developer | Company | A joint venture responsible for the UAE-Oman railway project. |
| Oman Rail | Joint Venture Partner | Company | Part of the joint venture developing the UAE-Oman railway. |
| Etihad Rail | Joint Venture Partner | Company | Part of the joint venture developing the UAE-Oman railway. |
| Mubadala | Joint Venture Partner | Company | Part of the joint venture developing the UAE-Oman railway. |
| Larsen & Toubro | Construction Partner | Company | Selected for constructing railway logistics facilities. |
| Power China | Construction Partner | Company | Selected for constructing railway logistics facilities. |
| China Railway Rolling Stock Corporation (CRRC) | Supplier | Company | Awarded the contract to supply freight wagons. |
| EMSTEEL | Commercial Partner | Company | Engaged for transporting limestone and red shale. |