Hafeet Rail and 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, signed a cooperation agreement with Itaminas Mineral Trading, one of Brazil’s leading iron ore producers.

This agreement represents a strategic step towards building an integrated and sustainable freight system based on the Hafeet Rail network, connecting major ports and industrial zones. This will enhance the efficiency of logistics operations and support the iron and steel industry in both countries.

This cooperation also aims to develop a reliable and efficient transportation network based on Hafeet Rail’s modern infrastructure, leveraging Sohar Port’s location and pivotal role in importing and processing iron ore, thanks to its advanced facilities and ongoing expansion plans to increase its capacity, in addition to its integration with the Hafeet Rail network.

Construction work on the Hafeet Rail project is progressing rapidly along the railway line between the Sultanate of Oman and the United Arab Emirates. Groundworks are underway for the construction of the main bridges and tunnels, paving the way for seamless connectivity between the two countries.

This progress reflects the close coordination between relevant stakeholders and local authorities, ensuring the achievement of the objectives set for this vital cross-border project. Itaminas specializes in the production of high-quality iron ore. Its current annual production capacity is 6.5 million tons, with environmental permits allowing it to expand to 15.5 million tons annually.

The company intends to export a significant portion of its production to the Middle East via the Port of Sudete in Brazil, as part of its efforts to strengthen its presence in the region’s iron and steel sector.

Itaminas is exploring the possibility of establishing parts of its value chain in the GCC, taking advantage of the region’s advanced infrastructure, energy resources, and strategic geographic location. This cooperation underscores the growing depth of integration between the Sultanate of Oman and the UAE.

It also 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 centers. This corridor serves global and regional steel companies seeking efficient, sustainable, and scalable logistics solutions in the region.