After securing 1,5 billions in funding, Hafeet Rail now signs contract for new freight locomotives

The Omani-Emirati joint venture Hafeet Rail is purchasing 27 new heavy-haul freight locomotives from Progress Rail. The deal now comes after the joint venture secured 1,5 billion dollars in funding for the infrastructure project, which is supposed to connect Oman and Abu Dhabi in the United Arab Emirates (UAE) via rail.

As part of the deal, Hafeet Rail is purchasing 27 EMD SD70ACS locomotives to be used on the future rail line, and are reportedly adapted to the arid climate of the region.

“This partnership reaffirms our commitment to developing and operating the railway network equipped with cutting-edge heavy-haul freight locomotives that meet international benchmarks. Additionally, our fleet is tailored to comply with GCC Railway Network standards, paving the way for efficient and streamlined freight movement between Oman and the UAE in the future,” said Ahmad Al Musawa Al Hashmi, CEO of Hafeet Rail.

“We are keen on forging partnerships that resonate with our mission to provide competitive freight solutions across the joint network. This initiative is poised to boost regional trade and unlock new prospects in the infrastructure, transportation, and logistics sectors of both countries, thereby enhancing economic diversification and fostering sustainable growth”, the CEO added.

Hafeet Rail

Hafeet Rail, a joint venture between Etihad Rail, Mubadala, and Asyad Group, will be 238 kilometres long and is supposed to connect five major ports and industrial zones across the UAE and Oman. In the future, an extended connection to Oman’s capital city Muscat is planned as well.

The rail project, which was previously named Omani & Etihad Rail Company but changed its name in the spring of 2024, is part of a wider effort to develop rail infrastructure in the Gulf region and to connect all six Gulf Cooperation Council member states.

Over a billion dollars in funding

Earlier, Hafeet Rail secured 1,5 billion dollars out of 2,5 billion dollars in necessary funding. The 1,5 billion dollar funding for the project reportedly comes from Emirati, Omani and regional banks, as well as banks from the wider world, including Jordan, Kuwait and the UK.

The funding for the rail line comes amid signs of ample demand for the project. As early as August 2023, a steel company signed up as a customer, even though preparatory works for the rail line only start in May of 2024. In both the UAE and Oman, the development of rail freight infrastructure is a recent phenomenon.