Oman’s Etihad Rail Company makes a deal with Brazil’s Vale to move trains.
Brazil’s mining giant Vale has made a big deal with Oman and the UAE.
This is an important first step for the region’s expanding rail network, as it will allow for the transportation of iron ore between the two countries.
One of the greatest mining firms in the world, Vale, has signed a Memorandum of Understanding (MoU) with the Oman and Etihad Rail Company, the creator and manager of the UAE-Oman Rail Network.
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Agreement on a railway between Oman and the United Arab Emirates
With Vale’s industrial complex in Sohar Port and Freezone and its projected mega-industrial complex in the UAE, the MoY will investigate the feasibility of transporting iron ore and its derivatives via rail between Oman and the UAE.
Since the project will give significant competitive advantages and economic incentives to important multinational players across a variety of sectors, this agreement underscores the project’s logistical relevance to those parties.
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Brazilian Ambassador Elaina Zugaib and UAE Minister of Energy and Infrastructure Suhail bin Mohammed Al Mazrouei observed the signing of the agreement.
The CEO of the Oman and Etihad Rail Company, Ahmed Al Musawa Al Hashemi, and Vale’s Director of Business Development, Rogerio Nogueira, signed the MoU.
In accordance with the terms of the agreement, Vale and the Sohar Port and Freezone will collaborate to create integrated logistics solutions for moving the company’s iron ore products and derivatives between the Sohar hub and the company’s various factories and distribution centers.
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The UAE Minister of Energy and Infrastructure, who is also the 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 UAE and Oman, supporting economic growth, continued development, and investment in both countries.”
“We are proud to partner with a leading international company like Vale,” said Ahmed Al Musawa Al Hashemi, CEO of the Oman and Etihad Rail Company. “Vale has a long history and extensive global experience in the production of iron, utilizing rail as a primary means of transportation for its logistical operations.” Potential users’ interest in the UAE-Oman Railway Network and its quick, sustainable, dependable, and cost-effective services is highlighted by the MoU.
Product and Operations Manager at Vale, Rogério Nogueira, commented on the MoU, saying that it paves the way for Vale to build low-carbon product manufacturing facilities in the United Arab Emirates and Oman.
He went on to say that Vale’s collaboration with Oman and Etihad Rail Company helps advance logistics in the region, which in turn facilitates a wide range of commercial and economic operations and yields many positive outcomes, such as the development of new employment possibilities and the introduction of superior transport systems.
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The Brazilian-based mining giant Vale operates across five different continents.
Iron ore is a major product for this business. Vale contributed to the construction of Brazil’s railroad system, which now stretches over 2,000 kilometers and serves the Sohar Port and Free Zone.
Established in 2011, its industrial complex in Sohar Port represents the Sultanate’s single largest investment in the industrial sector to date.