ABU DHABI: January 06, 2016. Etihad Rail, the developer and operator of the UAE’s national railway network, has signed an MoU to provide CEVA Logistics with a more cost-effective and reliable mode of transport for its supply chain management services.
According to Jerome Lorrain, CEVA Logistics EVP, Balkans, Africa, Middle East and Africa, “Etihad Rail will provide us with a much more reliable and environment friendly alternative to traditional modes of transport. Moreover, once the GCC rail connection is operational, it will significantly enhance the scope of our business.”
The rail company says it has signed over 50 MoUs with customers throughout the Emirates in industries ranging from petrochemicals and agriculture to aggregates and waste, and is in negotiations with other prospective partners including DP World and building materials company Arkan.
“This agreement is the first step towards the establishment of a long and strategic partnership between our two companies,” said Faris Saif Al Mazrouei, Etihad Rail CEO: “We look forward to working closely with CEVA Logistics and play our role in the greater diversification of the UAE economy.”
Once complete the Etihad Rail network will span approximately 1,200 kilometers across the UAE and form part of the GCC Railway Network, linking the UAE to Saudi Arabia through Ghweifat in the west and Oman through Al Ain in the east.
Under stage one of the project, trains are already carrying granulated sulphur from the gas fields of Shah and Habshan to Ruwais. Stage two will connect the railway to Mussafah, Khalifa Port and Jebel Ali port and see the railway extend to the Saudi and Omani borders, said the company.