Hafeet Rail Awards Strategic Contracts To Boost Logistics System And Supply Chains In Oman

Hafeet Rail has awarded construction contracts for its railway facilities in Oman to Larson & Toubro (L&T) and Power China. Additionally, the China Railway Rolling Stock Corporation (CRRC) will supply a new fleet of freight wagons. These agreements are pivotal for the Oman-UAE railway project, enhancing logistics integration and economic growth between the two countries.

Ahmed bin Ali Al Bulushi, Board Member of Hafeet Rail and CEO of Asyad Drydock & Infrastructure Services, remarked, "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."

The strategic contract with CRRC involves designing and supplying advanced freight wagons. These wagons will integrate into Hafeet Rail's network, improving cargo movement for various freight types. This initiative underscores Hafeet Rail’s dedication to boosting rail freight efficiency through modern technology.

The facilities in Al Buraimi and Sohar will meet global freight standards, ensuring efficient handling of bulk and containerised cargo. The Sohar facility will also include maintenance provisions for locomotives and wagons, enhancing operational performance and asset reliability.

Ahmed Al Musawa Al Hashemi, CEO of Hafeet Rail, stated that these agreements mark a transformative step towards 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," he said.

These contracts complement previous agreements covering civil works, signalling systems, locomotive procurement, and safety assessments. Hafeet Rail continues to develop its rail network to maximise efficiency and scalability across its infrastructure components.

Commitment to Economic Growth

By investing in advanced rail solutions, Hafeet Rail is reinforcing its role as a logistics innovator in the region. The company aims to enhance capacity and network agility while ensuring long-term sustainability through cutting-edge rolling stock technology.

The strategic rail link between Oman and the UAE is expected to optimise supply chains and boost trade competitiveness. It aims to unlock significant investment opportunities while positioning the region as a major logistical hub globally.

This railway project aligns with national economic priorities by creating a high-impact transport corridor that enhances regional competitiveness. It is anticipated to open new trade routes, improve supply chain efficiencies, and drive sustainable economic growth across both countries.

With inputs from WAM