Hafeet Rail Orders Locomotives From Progress Rail
Hafeet Rail, the developer and future operator of the new railway between Oman and the United Arab Emirates (UAE), has signed a contract with Progress Rail, a Caterpillar Company, for the supply of 27 EMD SD70ACS diesel freight locomotives.
The deal was signed during the Global Rail 2024 exhibition in Abu Dhabi. The contract value was not disclosed.
The locomotives will feature high-performance engines and advanced filtration technology, including pulse and sand filtration systems. Hafeet Rail says that they will also feature emissions-reduction technology, aligning with the company’s commitment to environmental sustainability.
The new locomotives will haul freight including bulk materials, containers, petrochemicals and metals. They will be built to the standards of the GCC Railway, the network being developed by the Gulf Cooperation Council (GCC) to connect Kuwait, Saudi Arabia, Bahrain, Qatar, the UAE and Oman.
“This partnership reaffirms our commitment to developing and operating a state-of-the-art railway network equipped with cutting-edge heavy-haul freight locomotives that meet international benchmarks,” Hafeet Rail CEO Ahmad Al Musawa Al Hashmi says. “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.”
“We are proud to have been selected to work with Hafeet Rail to further connect Oman and the UAE,” Progress Rail President and CEO John Newman says.
Consultancy and Finance
Also during Global Rail 2024, Hafeet Rail separately announced that it has appointed Systra to provide project and engineering consultancy services for the project to build the 188-mile (303-kilometer) railway from Sohar in Oman to Abu Dhabi in the UAE.
Systra will provide technical support for the joint railway network. This includes contract management, overseeing the performance of contractors and suppliers to ensure full compliance with all requirements and standards, and providing technical support for managing environmental, health and safety, and security standards.
Preparatory work is now under way, following the award of civil works and railway systems and integration contracts earlier this year. To finance the $3 billion project, Hafeet Rail has secured $1.5 billion in debt from a consortium of local, regional, and international lenders, including eight banks in the UAE and nine from Oman.
Dentons provided legal advice for the transaction. The law firm has also provided advice on the concession agreement for procuring construction and services on the UAE section of the line, and the track access agreement that will enable companies from the UAE that are involved in the project to access the existing rail network.
