Etihad Rail, the developer and operator of the UAE’s national railway network, and CEVA Logistics have signed a Memorandum of Understanding (MoU). The agreement will provide CEVA Logistics with a more cost-effective and reliable mode of transport to complement its services. Furthermore, the multi-modal connectivity offered by Etihad Rail will eventually lead to a more effective utilization of the company’s assets in the UAE.
“This agreement is the first step towards the establishment of a long and strategic partnership between our two companies,” said Faris Saif Al Mazrouei, Chief Executive Officer of Etihad Rail. “We look forward to working closely with CEVA Logistics and play our role in the greater diversification of the UAE economy.”
“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,” stated Jerome Lorrain, EVP, Balkans, Africa, Middle East and Africa, CEVA Logistics.
The Etihad Rail project is being delivered in three key stages of development. It will be used to transport bulk and non-bulk materials, offering tailor-made solutions to differing customer needs. Network routes have been designed to accommodate all key customer sectors, with freight facilities positioned to connect production hubs with points of import and export.
Once ready, the Etihad Rail network will span approximately 1,200 kilometers across the UAE, providing both freight and passenger services. It will connect urban and peripheral communities, facilitate trade, open up communication channels and foster economic development across all Emirates in the UAE. The network will also form a vital 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.