Hafeet Rail, ITAMINAS sign agreement to develop sustainable logistics solutions for steel industry

Business Thursday 29/May/2025 14:06 PM
By: ONA
Hafeet Rail, ITAMINAS sign agreement to develop sustainable logistics solutions for steel industry

Abu Dhabi: Hafeet Rail, the developer of the cross-border railway project between the Sultanate of Oman and the United Arab Emirates, has signed a cooperation agreement with Itaminas Comércio de Minérios, one of Brazil’s leading iron ore producers.

This agreement marks a strategic step toward establishing an integrated and sustainable shipping system leveraging Hafeet Rail’s network to connect major ports and industrial zones, enhancing logistical efficiency and supporting the iron and steel industry in both countries.

The collaboration aims to develop a reliable and efficient transport network utilizing Hafeet Rail’s modern infrastructure while capitalizing on the pivotal role of Sohar Port in importing and processing iron ore, thanks to its advanced facilities and ongoing expansion plans to increase capacity. The port’s integration with the Hafeet Rail network further strengthens this initiative.

Construction of the Hafeet Rail project is progressing rapidly along the railway route between Oman and the UAE, with ongoing groundwork, leveling, and site preparation. Major bridge and tunnel construction has also commenced, paving the way for seamless connectivity between the two nations.

This progress reflects close coordination between relevant authorities and local governments, ensuring the achievement of the objectives set for this vital cross-border project.

Itaminas specializes in producing high-quality iron ore, with a current annual production capacity of 6.5 million tons and environmental permits allowing expansion to 15.5 million tons annually. The company plans to export a significant portion of its production to the Middle East via Brazil’s Sudeste Port, as part of its efforts to strengthen its presence in the region’s iron and steel sector.

Itaminas is also exploring the possibility of establishing parts of its value chain in GCC countries, leveraging the region’s advanced infrastructure, energy resources, and strategic geographic location.

This cooperation underscores the deepening integration between Oman and the UAE and highlights the potential of the Hafeet Rail network to support future industrial projects in both countries. By creating an integrated logistics corridor linking ports to industrial and commercial hubs, the network will serve global and regional steel companies seeking efficient, sustainable, and scalable logistics solutions in the region.