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Partnership aims to provide logistics solutions for the country’s largest companies to move goods across the network at a lower cost and time
Etihad Rail, developer of the UAE’s national rail network, has entered into an agreement with Borouge, the UAE’s leading petrochemical company, to transport 1.3 million tonnes of polyolefin per year by rail from its petrochemical plant in Al Ruways Industrial City for export.
Etihad Rail Chairman Sheikh Theyab bin Mohamed bin Zayed Al Nahyan witnessed the signing of the terms of the sustainable transport strategic partnership between Etihad Rail and Borouge.
The signing was also witnessed by Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of Abu Dhabi National Oil Company (Adnoc), Chairman of Borouge; and Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure.
The agreement was signed by Etihad Rail CEO Eng Shadi Malak and Borouge CEO Hazeem Sultan Al Suwaidi in the presence of Etihad Rail and Borouge board members.
Theyab bin Mohamed bin Zayed Al Nahyan said: “This strategic partnership is in line with Etihad Rail’s efforts to provide some of the country’s largest companies with logistics solutions that can travel across the rail network at lower cost and time Transporting goods. In the process, Etihad Rail also helps reduce carbon emissions, in line with the UAE’s targets.”
He highlighted Adnoc’s role in supporting the rail project as it was the first company to use Etihad Rail’s services to transport granulated sulfur in the UAE, and also highlighted Borouge’s role in developing advanced solutions Innovative capabilities, these solutions enhance the UAE’s competitiveness in the petrochemical industry and support efforts to diversify the UAE’s economy.
Dr Sultan Al Jaber said: “This important partnership between Borouge and Etihad Rail contributes to the growth of Abu Dhabi’s industrial sector and will support Borouge in its continuous optimization of its logistics platform to reduce operating costs and carbon emissions. emissions.
“The partnership strengthens Borouge’s resilience and accelerates the export of its ‘Made in UAE’ products using more sustainable modes of transport, while underscoring the partners’ commitment to the UAE’s Net Zero 2050 strategic initiative,” he added .
The partnership supports national domestic value initiatives, with 88% of value flowing back into the local economy, fostering economic diversification and growth.
Under the terms of the partnership, Borouge becomes one of Etihad Rail’s main customers. It also includes the development of a rail freight terminal in Al Ruways Industrial City, covering an area of more than 1 million square meters, which will handle loading and unloading, as well as storage and maintenance of containers. By using rail, the time required to transport Borouge products will be reduced from 12 hours for other modes of transport to 4 hours.
Strategy session with private sector representatives on how to benefit from Etihad Rail’s freight services
Following the signing of the strategic partnership, Sheikh Theyab chaired a meeting with representatives of private companies in the railway industry, which was devoted to business opportunities offered by the UAE’s national railway network to the private sector. The meeting also discussed different ways to benefit from Etihad’s rail freight services to support the development of an integrated transport system that provides services at low cost with high levels of safety, efficiency, reliability and sustainability sex.
During the meeting, Sheikh Theyab announced the formation of an advisory committee to increase private sector benefits from the national rail network, which he stressed was in line with Etihad Rail’s commitment to innovative solutions for existing and potential customers, and Providing them with access to different parts of the UAE and the region via the UAE national rail network. Etihad Rail looks forward to exploring how the network’s first and last mile services can benefit and meet the requirements of the private sector to ensure comprehensive and integrated logistics solutions for various industries. “
During Sheikh Theyab’s tour of the ICAD Rail Freight Terminal, partnerships signed and meetings with private companies to oversee the progress of the terminal’s development, the largest rail freight terminal in the UAE at over 2.7 million square feet area and its various facilities, including more than 22 buildings to support operations
Etihad Rail has managed to reserve 60% of the network’s annual capacity. This is achieved through commercial agreements signed between Etihad Rail and major companies.
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