Container trains will travel from key UAE and GCC industry hubs to the Al Ghuwaifat Rail Terminal
The Joint Venture will see both organisations collaboratively establish a rail freight product that will introduce sustainable transport solution throughout the GCC.
Etihad Rail and DHL Global Forwarding recently signed the first commercial partnership with Etihad Rail since, the network became operational for freight services at the recently concluded Middle East Rail, in the Abu Dhabi National Exhibition Centre (ADNEC).
The newly formed joint venture company will further strengthen the sustainable freight offering within the UAE and GCC, operating across the Etihad Rail Network, connecting key industry hubs with the rail terminal at Al Ghuwaifat on the UAE-Saudi Arabia border.
The agreement is expected to significantly reduce pressures on road transport and boost trade, commerce and logistics in the UAE, whilst also playing a key role in helping the UAE meet its environmental responsibility commitments.
Ambitious partnership
The ambitious 20-year partnership between DHL and Etihad Rail will deliver significant benefits for businesses, optimising use of time and resources, reducing costs and more efficient asset management, it was announced via a press communique.
Additionally, the partnership will strengthen end-to-end logistics and supply chain services for customers in the region. DHL’s robust rail freight products offer secure and reliable transportation in many parts of the world. It is also an environmentally friendly alternative to cargo transportation via road or air freight.
Scheduled to go into operations in 2023, the inaugural route will see trains transporting containers from the Industrial City of Abu Dhabi’s (ICAD) Rail Terminal to the border of Saudi Arabia, with first and last mile solutions then taking containers into Dammam, Saudi Arabia.
Extensive expertise
“Our decades of expertise in rail and multimodal transport solutions, providing fast, secure and cost-effective connections in various parts of the world, make us the right partner to support the development of the railway industry in the UAE and the wider region,” observed Amadou Diallo, CEO Middle East & Africa, DHL Global Forwarding,
“As the UAE emerges as a one of the world’s key global logistics hubs, with GCC economies poised to grow in the next decade, DHL Global Forwarding is committed to supporting the momentum through enhanced mobility,” he continued.
“DHL Global Forwarding will be a key partner for Etihad Rail as we embark on fulfilling our ambitious targets to connect the region. Our 1,200 km rail network will link key centres of production, logistics and trade with major import and export points in the UAE and the wider region,” affirmed Shadi Malak, CEO, Etihad Rail, accentuating the partnership.
Sustainable transport
With freight operations operational since February, Etihad Rail is pleased to introduce further sustainable transport models within the UAE and GCC and continue to stimulate economic growth and sustained social development in the region.
The agreement between Etihad Rail and DHL Global Forwarding is one of the region’s largest collaborations for the transport industry and showcases the respective organisation’s commitment to the UAE’s sustainability agenda, the press statement concluded.
