Ambitious transport infrastructure projects are boosting trade and leading the UAE to a clean future
Infrastructure is critical for the economic progress of a nation. It creates jobs, improves people’s quality of life, enables social inclusion, and is also essential to fulfil sustainability goals. Transport infrastructure is key to enable the swift movement of goods and connect people, both of which drive economic growth, emphasizes Amadou Diallo, CEO, DHL Global Forwarding, Freight Middle East and Africa.
The UAE has a rich heritage of developing world-class infrastructure projects to support economic progress and more recently, to boost its national diversification agenda. Over the past few decades, ambitious projects have taken root on UAE soil including man-made islands, expansive shopping malls and the tallest residential towers, to name a few.
More recently, the UAE Government is investing in ambitious megaprojects that are set to transform the nation and position the country as a regional and global powerhouse. The newly launched SeaWorld Abu Dhabi, Atlantis the Royal in Dubai, and the Louvre Abu Dhabi Residences are a few tourism and hospitality projects that are expected to boost visitor numbers.
In addition, The Zayed National Museum, Dubai Vertical City, and the Sharjah Floating theatre are expected to position the country as a vibrant and innovative hub for tourism, business and investment.
Ambitious transport projects
Equally, ambitious transport infrastructure projects are boosting trade and business competitiveness and paving the way for the UAE to transition to a clean future. Rail is one of the most energy-efficient transport modes.
According to estimates, it uses 80% less energy than trucks per ton of freight carried and accounted for just 4% of the transport industry’s global emissions in 2019.
Unsurprisingly, governments around the world are making plans to increase rail’s sustainability to reduce their carbon footprint and lower costs throughout operations and supply chains.
Etihad Rail
Etihad Rail is one of the foremost infrastructure projects expected to revolutionize trade and transport in the UAE and the wider GCC region. The freight operations of the national railway will transport 60mn tonnes of goods annually and connect 4 major ports and 7 logistics centres across the country, namely Ruwais, Industrial City of Abu Dhabi (ICAD), Khalifa Port, Dubai Industrial City, Jebel Ali Port, Al Ghail and Fujairah Port.
This will be critical to support the UAE’s burgeoning logistics market, already touted to be one of the world’s key global logistics hubs. According to recent estimates, the UAE’s logistics market will grow at a CAGR of 6.2% between 2023-2028.
DHL Global Forwarding has been supporting the UAE’s growing capacity requirements through its expertise in rail and multimodal transport solutions. Recently, the company signed a strategic 20-year partnership with Etihad Rail to establish a joint venture company that will enable it to use Etihad Rail’s network to conduct its main operations within the UAE.
Collaboration
As one of the largest collaborations for the transport industry, the partnership will deliver significant benefits for businesses, strengthen end-to-end logistics and supply chain services for customers in the region, and offer an environmentally friendly alternative to cargo transportation.
To keep the momentum going, new technologies and further support from all stakeholders will be required, including policymakers, investors, suppliers, and rail service providers themselves, to expand investments and drive-up rail usage. Equally, new incentives for rail freight transport, such as reducing charges for track use and wider digitalization, will be necessary to encourage a shift to rail freight in the future.
The UAE is already on the right track when it comes to comprehensive infrastructure development that supports not just trade and logistics – but urbanization and inclusive growth. The future will be all about harnessing new technologies to drive this vision in the future.
