ABU DHABI, 7th February, 2025 (WAM) -- Hafeet Rail has awarded the construction contracts for its key railway facilities in Oman to Larson & 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.

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.

As part of its commitment to developing a world-class logistics network Hafeet Rail has signed a strategic design and build contract with Larson & Toubro (L&T) and Power China to construct state-of-the-art railway logistics facilities in Al Buraimi and Sohar.

Designed to meet global freight handling standards, these state-of-the-art facilities will secure seamless transportation and handling of bulk, containerised, and breakbulk cargo, enhancing throughput efficiency and multimodal connectivity.

Additionally, the Sohar facility will include provisions for locomotive and wagon maintenance, ensuring long-term asset reliability, optimised operational performance, and enhanced network resilience-strengthening Oman's role as a key hub in global trade corridors.

Hafeet Rail has awarded a strategic contract to China Railway Rolling Stock Corporation (CRRC) for the design, engineering, and supply of a next-generation of high-performance freight wagons. Designed for multi-modal adaptability, these wagons will seamlessly integrate into the Hafeet Rail network, optimising cargo movement for varied freight types, including bulk commodities and containerised cargo.

This contract reflects Hafeet Rail's commitment to redefining rail freight efficiency, leveraging cutting-edge rolling stock technology to enhance capacity, network agility, and long-term operational sustainability.

By investing in advanced rail solutions, Hafeet Rail is reinforcing its position as a key enabler of logistics innovation and trade connectivity in the region.

These new awarded contracts reinforce Hafeet Rail's ongoing infrastructure development, complementing previously contracts covering civil works, signalling and control systems, locomotive procurement, and independent safety assessments. The company continues to execute its rail network development roadmap, ensuring the synchronised deployment of critical infrastructure components to maximise efficiency and scalability.

On this occasion, 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 underway. These contracts enhance the technical and commercial capabilities of the network while reinforcing seamless integration between local industries and regional markets."

He added, "By fortifying cross-border connectivity between Oman and the UAE, we are not only optimising supply chain efficiency but also positioning our integrated logistics ecosystem as a key enabler of trade competitiveness and economic growth. This strategic rail link will unlock unprecedented trade potential, catalyze high-impact investment opportunities, and position the region as a logistical powerhouse in the global economy."

Ahmed Al Musawa Al Hashemi, CEO of Hafeet Rail, said. "The signing of these agreements represents a transformative step in advancing 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 added, "By aligning with national economic priorities and harnessing global expertise, we are building a high-impact transport corridor that enhances regional competitiveness. This railway will unlock new trade routes, optimise supply chain efficiencies, and stimulate sustainable economic growth, creating long-term value for businesses and communities across both countries."