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Cyber will be a game changer for the country’s logistics industry, experts say
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His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, inaugurated the national railway network.Photo: Dubai Media Office
Business leaders in the UAE have warmly welcomed the UAE rail network, with some already counting the resulting savings.
“The move further cements the UAE’s status as a world trade hub,” said Kamal Vachani, director of Al Maya Group, a major Dubai-based FMCG company. “It strengthens the already strong transport infrastructure the country offers and will have a positive impact on all businesses in the country.”
On Thursday, the UAE announced the launch of its national rail network. The 900km pan-UAE network has been completed according to the approved timetable and budget, and freight train operations have started across the UAE.
According to Abdul Jebbar, group managing director of Hotpack Global, who is a long-time Dubai resident, the network will be a game-changer for the country’s logistics industry. “This will allow us to move large volumes of cargo more efficiently, safely and economically,” he said. “We believe the rail network will play a key role in supporting our business operations as we have 11 manufacturing plants and distribution centers across the country.”
One of the largest infrastructure projects in the region, the backbone of the UAE’s national rail network extends from Guwaifat on the border with Saudi Arabia to Fujairah. Crossing multiple geographic terrains, the project plan includes the construction of 593 bridges and intersections, and nine tunnels 6.5 kilometers long.
Another business owner, Mansoor Ali, founder of Ecogreen Contracting and Landscaping Company, said he wants transport prices to be reduced by at least 15%. “There are several benefits to using the rail network for transport,” he said. “The volume of goods that can be transported and the speed and reduced cost of fuel means a lot for the construction industry. According to my initial calculations, the cost should be reduced by at least 15%. I have had a situation where my products were shipped to Abu Dhabi , I have to transport them to the site in Ras Al Khaimah. With the rail network, the cost of such projects is much lower and it is more feasible for me.”
The network will help support the national economy and is estimated to be worth AED 200 billion. This will help save AED 8 billion in road maintenance costs. The tourism benefit of the network is estimated at AED 23 billion.
Photo: Dubai Media Office
In October last year, the Oman-Etihad Railway Company was established to build a railway linking Oman’s Sohar Port with the UAE’s national railway network.
Impact on the environment and growth
According to Abdul Jebbar, the network will have a huge impact on the company’s environmental impact. “By utilizing this network, we will be able to significantly reduce our carbon footprint, in line with our commitment to sustainable development,” he said. “Furthermore, with the wide connectivity of the network, we hope to increase our productivity and reach traders as this will allow us to ship our products to our customers on time.”
Bharat Bhatia, CEO and founder of steel company Conares, said the network would be a catalyst for growth and innovation. “This will open up new possibilities for businesses in the UAE,” he said. “It will provide a new platform for intercity transport, enabling businesses to integrate different modes of transport and create better and more efficient supply chains.”
According to him, companies that supply steel for the project will benefit greatly from it. “The Etihad Network will facilitate our logistics in the UAE, reaching our customers more effectively than ever before. The network will increase market competitiveness, which will benefit businesses and consumers. We look forward to leveraging its capabilities to drive our growth and success in the years to come.”
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