Logistics (MENA) 
Egypt Edition 
UAE Edition 
Saudi Edition 
MENA <> India Corridor 
Climate (MENA) 
Share
New contracts advancing Hafeet Rail project: Hafeet Rail — a 50-50 JV between UAE’s Etihad Rail and Oman Rail — has awarded three contracts advancing its USD 2.5 bn rail project that will connect UAE’s Abu Dhabi and Oman’s Sohar, Wam reported on Friday.
Here is a rundown of what we know about the agreements:
#1- Establishing new rail facilities: Hafeet Rail inked a strategic design and construction contract with Indian construction firm Larson & Toubro (L&T) and state-owned heavy and civil engineering firm Power China to build state-of-the-art railway logistics facilities in Oman’s Al Buraimi and Sohar. No investment ticket has been disclosed.
#2- Expanding wagon rail fleet: The firm awarded a strategic contract to the state-owned China Railway Rolling Stock Corporation (CRRC) for the design, engineering, and supply of high-performance freight wagons tailored for different varieties of cargo. No investment ticket has been disclosed.
#3- Transporting raw minerals: UAE-based building materials manufacturer Emirates Steel Arkan (Emsteel) formed a 15-year primary partnership agreement with Hafeet Rail for the transportation of raw limestone and red shale, Wam reported. Under the agreement, the pair will transport up to 4.2 mn tons of raw materials from Oman to the UAE annually. Emsteel will operate the Emsteel rail transfer facility in the UAE’s Al Ain, which will be equipped with railcar unloading stations, conveyor systems, and stockpile management systems.
Background: The rail link project — announced back in 2022 — will cut travel between Abu Dhabi and Sohar to 100 minutes, with freight trains moving at 120 km/h. The project is set to transport over 15k tonnes of cargo — the equivalent of 270 standard containers — on a single freight train journey. Last October, Hafeet Rail secured USD 1.5 bn in debt financing from a consortium of Emirati, Omani, and international lenders.
Hafeet’s been making moves: The firm inked a contract with Progress Rail for 27 state-of-the-art heavy-haul freight locomotives for the project back in October. The locomotives are designed for the region’s harsh environment, with each train extending for c. 2 km. The locomotives will be configurable to transport freight cargo, including bulk materials, containers, petrochemicals, metallic products, and other industrial goods.
