Hafeet Rail, the planned Oman-UAE railway, has awarded the construction contracts for its key railway facilities in Oman to Larsen & Toubro (L&T) and Power China, while the China Railway Rolling Stock Corporation (CRRC) has been contracted to supply a cutting-edge fleet of freight wagons.

Hafeet Rail is a joint venture between Oman Rail, Etihad Rail, and Mubadala, established to develop a modern rail network that boosts logistics efficiency and drives economic growth between Oman and the UAE.

As reported earlier, Hafeet Rail has signed a commercial agreement with Emsteel to facilitate the transportation and export of aggregate materials between Oman and the UAE.

These agreements mark a significant milestone in the implementation of the Oman-UAE railway project, reinforcing logistics integration, cargo efficiency, and sustainable economic growth across both nations.

The design and build contract with L&T and Power China envisages construction of state-of-the-art railway logistics facilities in Al Buraimi and Sohar.

Designed to meet global freight handling standards, these state-of-the-art facilities will secure seamless transportation and handling of bulk, containerised, and breakbulk cargo, enhancing throughput efficiency and multimodal connectivity.

Additionally, the Sohar facility will include provisions for locomotive and wagon maintenance, ensuring long-term asset reliability, optimised operational performance, and enhanced network resilience — strengthening Oman’s role as a key hub in global trade corridors.

Optimising Cargo Transport
Hafeet Rail has awarded a strategic contract to China Railway Rolling Stock Corporation (CRRC) for the design, engineering, and supply of a next-generation of high-performance freight wagons. Designed for multi-modal adaptability, these wagons will seamlessly integrate into the Hafeet Rail network, optimising cargo movement for varied freight types, including bulk commodities and containerised cargo.

This contract reflects Hafeet Rail’s commitment to redefining rail freight efficiency, leveraging cutting-edge rolling stock technology to enhance capacity, network agility, and long-term operational sustainability.

By investing in advanced rail solutions, Hafeet Rail is reinforcing its position as a key enabler of logistics innovation and trade connectivity in the region.

Deal with Emsteel
Earlier, Hafeet Rail signed a Heads of Terms Agreement with Emsteel, one of the largest publicly traded steel and building materials manufacturers in the region, establishing a long-term partnership to ensure the seamless transportation of limestone and red shale, from Oman to the UAE.

This strategic collaboration aligns with Oman Vision 2040 and the UAE’s National Strategy for Industry and Advanced Technology (Operation 300bn), reinforcing secure, high-efficiency supply chains for critical raw materials.

Under the agreement, Hafeet Rail will transport limestone and red shale from Oman to the UAE, with an annual freight volume of 4.2 million tons over a 15-year term, extendable based on future demand.

This collaboration underscores Hafeet Rail’s commitment to redefining rail freight efficiency, leveraging cutting-edge rolling stock technology to enhance capacity, network agility, and long-term operational sustainability.

These new awarded contracts reinforce Hafeet Rail’s ongoing infrastructure development, complementing previously contracts covering civil works, signalling and control systems, locomotive procurement, and independent safety assessments. The company continues to execute its rail network development roadmap, ensuring the synchronized deployment of critical infrastructure components to maximize efficiency and scalability.

The partnership enhances logistics resilience, de-risks supply chain dependencies, and supports the region’s industrial scalability and sustainability agenda through reliable, rail-based freight solutions.

On this occasion, Ahmed bin Ali Al Bulushi, Board Member of Hafeet Rail and CEO of Asyad Drydock & Infrastructure Services, stated: “The signing of these agreements represents a natural progression in the implementation of our ambitious railway project, building on the foundational work already underway. These contracts enhance the technical and commercial capabilities of the network while reinforcing seamless integration between local industries and regional markets.

"By fortifying cross-border connectivity between Oman and the UAE, we are not only optimising supply chain efficiency but also positioning our integrated logistics ecosystem as a key enabler of trade competitiveness and economic growth. This strategic rail link will unlock unprecedented trade potential, catalyze high-impact investment opportunities, and position the region as a logistical powerhouse in the global economy."

 Ahmed Al Musawa Al Hashemi, CEO of Hafeet Rail, stated: “The signing of these agreements represents a transformative step in advancing economic integration between the UAE and Oman. This strategic initiative strengthens both nations’ positions as key trade and logistics hubs, fostering greater economic diversification, industrial expansion, and cross-border investment.”

“By aligning with national economic priorities and harnessing global expertise, we are building a high-impact transport corridor that enhances regional competitiveness. This railway will unlock new trade routes, optimize supply chain efficiencies, and stimulate sustainable economic growth, creating long-term value for businesses and communities across both countries.”

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.”