The Oman and Etihad Rail Company (OERC), along with steel producer Jindal Shadeed Iron & Steel, have recently signed an MoU establishing sustainable logistics solutions. The agreement will put in place a sustainable, end-to-end transport logistics solution, easing the transport of steel to the UAE. The UAE-Oman Rail Network will connect Jindal’s steel complex at the Sohar Port, and the UAE.
Details of the MoU
The MoU allows for Jindal to transport 4 million tons of raw materials and finished products annually. As per the agreement’s terms, OERC will utilize its advanced rail network to assist Jindal in achieving seamless operational integration. This will involve streamlined loading and unloading processes, ensuring the necessary rolling stock and facilities for transporting iron ore and steel.
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Harsha Shetty, CEO of Jindal, said, “This is an important milestone for our company as we look forward to further expanding the reach of our high-quality, industry-leading products in the region and beyond. Our ability to seamlessly transport nearly 4 million tonnes of raw material will greatly help us in our operations, supporting our ambition to reduce our carbon footprint.”
Sustainable logistics
The collaboration advances the sustainability objectives set in place by both OERC and Jindal. Further, this will contribute in the reduction of CO2 emissions. As per the terms of the agreement, OERC will utilize its rail network to assist Jindal. The logistics solution will streamline loading and unloading processes, meeting the necessary requirements.
The company has been engaging in various partnerships with prominent international players across different industries, offering innovative solutions and facilities. In a significant move, OERC signed a Memorandum of Understanding (MoU) with Brazil’s Vale in May, exploring the possibility of using rail transportation for iron ore and its derivatives between Oman and the UAE from its Sohar industrial complex.
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