Hafeet Rail, the planned Oman-UAE railway, has awarded the construction contracts for its key railway facilities in Oman to Larsen & Toubro (L&T) and Power China, while the China Railway Rolling Stock Corporation (CRRC) has been contracted to supply a cutting-edge fleet of freight wagons.

Hafeet Rail is a joint venture between Oman Rail, Etihad Rail, and Mubadala, established to develop a modern rail network that boosts logistics efficiency and drives economic growth between Oman and the UAE.

These agreements mark a significant milestone in the implementation of the Oman-UAE railway project, reinforcing logistics integration, cargo efficiency, and sustainable economic growth across both nations.

The design-and-build contract with L&T and Power China envisages construction of state-of-the-art railway logistics facilities in Al Buraimi and Sohar.  The Sohar facility will include provisions for locomotive and wagon maintenance.

China Railway Rolling Stock Corporation (CRRC) has the contract for the design, engineering and supply of a next-generation of high-performance freight wagons.

Earlier, Hafeet Rail signed a Heads of Terms Agreement with Emsteel, one of the largest publicly traded steel and building materials manufacturers in the region, establishing a long-term partnership to ensure the seamless transportation of limestone and red shale, from Oman to the UAE.

This strategic collaboration aligns with Oman Vision 2040 and the UAE’s National Strategy for Industry and Advanced Technology (Operation 300bn), reinforcing secure, high-efficiency supply chains for critical raw materials.

Under the agreement, Hafeet Rail will transport an annual freight volume of 4.2 million tons over a 15-year term, extendable based on future demand.

These new awarded contracts reinforce Hafeet Rail’s ongoing infrastructure development, complementing previously awarded contracts covering civil works, signalling and control systems, locomotive procurement, and independent safety assessments.

Ahmed bin Ali Al Bulushi, Board Member of Hafeet Rail and CEO of Asyad Drydock & Infrastructure Services, stated: “The signing of these agreements represents a natural progression in the implementation of our ambitious railway project, building on the foundational work already under way. These contracts enhance the technical and commercial capabilities of the network while reinforcing seamless integration between local industries and regional markets.”