Muscat: Oman and Etihad Rail Company (OER) have signed a Memorandum of Understanding (MoU) with Al Jazeera Steel Products Co (AJSP) to establish a strategic framework for collaboration on logistics solutions. This partnership aims to enhance the transportation of raw materials and finished goods in an efficient, cost-effective, and sustainable manner.
As per the agreement, OER will utilize the UAE-Oman Rail Network to support Al Jazeera Steel in optimizing their inbound and outbound logistics from their factories in Oman.
The MoU was signed by Eng. Mohammed bin Zahran Al Mahruqi, Deputy CEO of OER, and Venkat A.N, CEO of Al Jazeera Steel Products.
Mohammed Al Mahruqi, Deputy CEO of OER, expressed his satisfaction with the partnership, stating that it reinforces the commitment of Oman and Etihad Rail Company to provide cost-effective, efficient, and sustainable logistical solutions to customers in Oman and the UAE. He further emphasized that this agreement aligns with the vision of the Oman and Etihad Railway Project, which aims to enhance cross-border trade activity between the two countries, connecting manufacturing and production centers, as well as import and export points. Ultimately, this collaboration is expected to significantly contribute to the growth of various industrial sectors in both the UAE and Oman.
Venkat A.N, CEO of Al Jazeera Steel Product Co, expressed his satisfaction in partnering with Oman and Etihad Rail Company. He believes that the logistics service provided by OER will greatly enhance their efforts to expand their presence in the GCC and export markets. The vision of OER aligns closely with Al Jazeera Steel Products Co's vision of delivering technology-driven solutions. This collaboration will not only help them prepare for future challenges but also optimize their logistics costs.
The agreement highlights the importance of the railway network as a vital link in the transportation and logistics chain across the region. It has attracted numerous commercial clients from both countries, as well as international companies operating in the region. This partnership aims to build long-term economic relations that promote operational sustainability, thanks to the anticipated socioeconomic benefits of the network. Additionally, the joint railway network will contribute to reducing reliance on cars and trucks, paving the way for a low-carbon future and supporting the net zero strategies of both countries. It will also encourage eco-conscious industrial practices and set a new standard in the sector.
Once the UAE-Oman Rail Network is fully operational, it will significantly improve the efficiency of freight movement by reducing travel time between the two countries and eliminating delays caused by weather and traffic conditions. Each train will have the capacity to seamlessly transport up to 15,000 tonnes of freight between five major ports and over 15 integrated freight facilities in the UAE and Oman.
During a recent meeting in Muscat, the Board of Directors of OER discussed the progress of the project, including the achievements in preliminary works, tendering processes for various segments, and the utilization of innovative engineering solutions. The board also highlighted the partnerships formed to establish integrated logistics solutions.
