Etihad Rail has announced the signing of a financing agreement worth $1.5 billion with a group of Emirati and Omani banks backed by regional and international financial institutions for the Hafeet Rail network project connecting the UAE with the Port of Sohar in Oman.

The consortium of banks involved in this deal include Abu Dhabi Commercial Bank, Arab Bank, Commercial Bank of Dubai, First Abu Dhabi Bank, National Bank of Kuwait, Standard Chartered Bank, Abu Dhabi Islamic Bank, and Bank Ajman (all from the UAE) and Ahli Bank, Bank Dhofar, Bank Muscat, National Bank of Oman, Oman Arab Bank, Ahli Islamic Bank, Bank Muscat (MeethaqIslamic Banking), Bank Nizwa and Alizz Islamic Bank (all from Oman).

The 238-km Hafeet Rail network, which boasts 60 bridges, some towering up to 34m in height and tunnels stretching 2.5 km in length – will link five major ports and various industrial and free zones across the two nations, it stated.

Hafeet Rail said it has successfully reduced the required bank financing for the Emirati-Omani rail network from the initially announced $3 billion to $2.5 billion. This highlights the company’s strategic approach and dedication to optimising resources while advancing the development of this critical project, said the company.

According to Etihad Rail, single freight train journey on the network is expected to transport more than 15,000 tonnes of cargo, or approximately 270 standard containers.

Once operational, the railway will cut the travel time between Abu Dhabi and Sohar to just 100 minutes with freight trains reaching speeds of 120 km/hour. Passengers will be able to ride on the network, with one train being able to accommodate up to 400 travellers at a speed of 200 km/hour.

Meanwhile,  Hafeet Rail, the developer and operator of the Omani-Emirati railway network, has signed up Systra, a leading French engineering and consultancy firm specialising in public transport and infrastructure, to provide administrative and engineering consultancy services for the joint network.