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Abu Dhabi-based steel producer Emsteel has signed an agreement with Hafeet Rail to enable the transport of raw materials using the rail link that connects the UAE and Oman.

Emsteel will operate the rail transfer facility in Al-Ain, which includes railcar unloading stations, conveyor systems and stockpile management systems. The facility will handle key materials sourced from Oman, including limestone and red shale, which will be used in Emsteel’s cement production process.

The agreement will enable the transportation of up to 4.2 million tonnes of raw materials a year from Oman to the UAE. The partnership has an initial term of 15 years with an option to extend for a further 15 years on similar terms.

According to an official statement, Emsteel has also signed an agreement with Minerals Development Oman to source the industrial minerals that Emsteel will use for its production processes.

Hafeet Rail’s latest agreement comes after the firm signed several project agreements on the sidelines of the GlobalRail event in Abu Dhabi in October last year.

Hafeet Rail announced that it had appointed the French engineering firm Systra to provide the project’s administrative and engineering consultancy services.

Another agreement was signed with US-based Progress Rail to supply 27 freight locomotives for the project.

Project financing agreements worth $1.5bn were also announced on 8 October.

In April last year, the client awarded contracts for three civil works packages for the railway project linking Oman and the UAE.

READ THE FEBRUARY MEED BUSINESS REVIEW

Trump unleashes tech opportunities; Doha achieves diplomatic prowess and economic resilience; GCC water developers eye uptick in award activity in 2025.

Published on 1 February 2025 and distributed to senior decision-makers in the region and around the world, the February MEED Business Review includes: