Oman and the UAE have signed a major deal with Brazilian mining giant Vale to begin transporting iron ore between the two countries.
The Oman and Etihad Rail Company, the developer and operator of the UAE-Oman Rail Network, has signed a Memorandum of Understanding (MoU) with Vale, one of the world’s largest mining companies.
Oman and UAE sign rail deal
The MoU will explore using rail to transport iron ore and its derivatives between Oman and the UAE, connecting Vale’s industrial complex in Sohar Port and Freezone to its planned mega-industrial complex in the UAE.
This agreement reflects the logistical importance that the project will provide to major international players in several different sectors, as they stand to benefit significantly from the competitive advantages and economic incentives of the project.
Under the terms of the agreement, both parties will work to develop integrated logistics solutions that connect Vale’s industrial complex in Sohar Port and Freezone and transport the company’s iron ore products and derivatives between the company’s Sohar hub and various factories and distribution centres.
