The agreements have been signed with Hafeet Rail Infrastructure, the region’s first cross-border rail network connecting Oman and the UAE.
Emsteel, the region’s largest publicly traded steel and building materials manufacturers, has established strategic partnerships to streamline raw material sourcing from Oman and cross-border rail transport.
Emsteel has formalized agreements with Hafeet Rail Infrastructure, the region’s first cross-border rail network linking Oman and the UAE, and Minerals Development Oman (MDO), the country’s leading mining entity, aiming to enhance raw material sourcing and streamline transportation across borders.
The primary agreement, signed with Hafeet Rail Infrastructure, talks about Emsteel and Hafeet Rail collaborating closely to undertake roles and responsibilities.
Hafeet Rail will develop an integrated logistics solution that facilitates the seamless transportation of limestone and red shale. Leveraging the region’s first cross-border railway and built to the highest standards of efficiency and reliability, this service will optimise supply chain operations and enhance connectivity across key markets, Emsteel added.
As the primary end-user of the transported materials, Emsteel will manage the Rail Transfer Facility in Al Ain, UAE. This facility will feature advanced railcar unloading stations, conveyor systems, and stockpile management systems to efficiently incorporate limestone and red shale, essential raw materials from Oman, into their cement production process.
The agreement would secure the transport of raw materials from Oman to the UAE with a capacity of up to 4.2 million tons annually. with an initial term of 15 years and an option to extend for a further 15 years on similar terms. Emsteel has also formalised an agreement with Minerals Development Oman. MDO will oversee the sourcing of the quality of industrial minerals, guaranteeing Adherence with the standards established by Emsteel.
For MDO, this project signifies Oman’s potential to effectively harness its mineral resources to foster regional industrial development and stimulate economic growth.
The landmark agreements highlight a shared commitment to efficient, sustainable transportation of raw materials critical to Emsteel’s cement production while also aligning with the UAE’s Operation 300bn strategy and Oman’s Vision 2040, the company said.
Eng Saeed Ghumran Al Remeithi, Group Chief Executive Officer, Emsteel, said: “This agreement is a significant step forward for EMSTEEL as it ensures a reliable and sustainable supply chain for our cement unit. It reflects our commitment to sustainability and operational excellence while symbolising the growing economic collaboration between the UAE and Oman. By leveraging regional resources and infrastructure, this partnership demonstrates how we can collectively drive industrial growth and build a more sustainable future.”
Eng Mattar Al Badi, CEO of Minerals Development Oman, stated: “The cooperation we signed today with Emsteel as part of the Hafeet Rail Project demonstrates Minerals Development Oman’s commitment to strengthening strategic regional partnerships and unlocking new opportunities for the evolution of the mining and downstream industries in Oman and the UAE. This collaboration takes advantage of the significant potential of the Oman-UAE railway network led by Hafeet Rail. Furthermore, it supports our sustainability initiatives by implementing more efficient and environmentally friendly logistics solutions.”
As the UAE’s top publicly listed steel and building materials firm, it remains at the forefront of initiatives that promote regional growth and economic cooperation.