• The memorandum includes developing integrated logistical solutions for transporting iron and its products by rail.
• The memorandum allows the Brazilian company, the leading manufacturer of iron ore, to export its products from its industrial complex in Sohar Port and the Free Zone to its future distribution centers.
• Commercial partnerships with major international companies prior to the actual implementation of the project.
ABU DHABI, 13th May, 2020 (WAM) — Oman and Etihad Rail, the developer and operator of the railway network linking the Sultanate of Oman and the UAE, has signed a memorandum of understanding with Vale, one of the largest mining companies in the world, to explore opportunities for providing transportation services for raw materials. Iron between the Sultanate of Oman and the United Arab Emirates by rail, linking the industrial complex of the “Vale” company in Sohar Port and the Free Zone with its planned industrial complex in the United Arab Emirates.
The memorandum of understanding reflects the logistical importance that the project will provide to major international companies in various sectors to benefit from the competitive advantages and economic incentives of the project.
The signing of the memorandum was witnessed by Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, Chairman of the Board of Directors of Oman and Etihad Rail, and Eliana Zogheib, Brazilian Ambassador to the country. and Rogerio Nogueira, Business and Product Director, Vale.
Under the memorandum of understanding, the two parties will work to develop integrated logistical solutions to link the industrial complex of “Vale” company in Sohar port and the free zone to transport its iron products and derivatives to the factories and distribution centers that “Vale” seeks to develop as part of its future plans in several locations, including the proposed industrial complex to be established in Abu Dhabi Emirate.
His Excellency Suhail bin Mohammed Faraj Faris Al Mazrouei, Minister of Energy and Infrastructure, Chairman of the Board of Directors of Oman and Etihad Rail, said: “The signing of the Memorandum of Understanding stems from our keenness to establish strategic partnerships with major companies in the United Arab Emirates and the sisterly Sultanate of Oman, to support investment prospects.” economic growth and comprehensive development in the two countries.
Ahmed Al-Massawi Al-Hashemi, CEO of Oman and Etihad Rail, said: “We are proud to establish partnerships with major international companies such as Vale, which has a long history and extensive global experience in the iron industry, and relies on railways as a major means of transportation in its logistical operations.
He added: The memorandum of understanding that we signed with Vale reflects the interest of potential users to benefit from the Omani-Emirati railway network and its services, which will be faster, more sustainable, reliable and less expensive.
For his part, Rogerio Nogueira, Director of Business and Products at Vale, said that the agreement supports Vale’s plans to develop industrial complexes in the United Arab Emirates and the Sultanate of Oman to produce low-carbon products used in the steel industry, explaining that Vale’s partnership with Oman and Etihad Rail confirms the logistical progress achieved at the regional level, which enables a wide range of economic and commercial activities and provides various benefits, including creating new job opportunities and providing high-quality transportation solutions.
It is noteworthy that the company “Vale” is considered one of the largest mining companies in the world, headquartered in Brazil, and has a presence on five continents, and is a leading company in the production of iron.
Vale has worked to develop the railway network in Brazil, which extends over a distance of more than 2,000 km. In addition, Vale has been working in Sohar Port and Free Zone for 12 years, as the company established its huge industrial complex in Sohar Port and Free Zone in 2011, to be the largest industrial investment in the Sultanate of Oman.