National Quarries has entered into a partnership with the UAE’s national rail network, Etihad Rail.
The two companies have announced that a memorandum of understanding (MoU) has been signed concerning the distribution of aggregates and construction materials.
The agreement will enable National Quarries to use the 1,200km rail network to distribute its products across the Emirates.
“This new agreement with Etihad Rail will transform how we do business,” commented Hamad Ali Saif Lootah, chairman of National Quarries’ owner, Al Jazeera Investment Company.
“As for any company in our sector, logistics is one of the biggest operational costs. Etihad rail will provide us with a more economical and reliable transport system that will greatly benefit our operations as we continue our regional expansion.
“Its new logistics strategy for bulk transportation will enable us to have forward distribution centres closer to our customers, and ensure better quality control for our products,” he added.
National Quarries is confident that the Etihad Rail network will allow for faster and more consistent transit times, lowering its overall logistics costs and increasing its capacity.
The agreement is the latest in a line of regional partnerships that Etihad Rail has entered into over the past 18 months. It forms part of the company’s strategy to build working relationships with local businesses and stakeholders.
“Etihad Rail will provide a faster, more reliable, and lower-cost transportation service that will link the country’s major centres of population and industry with the Gulf and Indian Oceans,” said Eng Faris Saif Al Mazrouei, acting chief executive officer of Etihad Rail.
“This enhanced connectivity will bring businesses closer together, extending geographic markets, making a greater labour force available, and facilitating more efficient trade.
“Partnerships with key local companies, such as National Quarries, [are] a cornerstone of this integration and a major factor in the positive impact that Etihad Rail will have on the local – and regional – economy,” he explained.
National Quarries expects its Etihad Rail-related materials transportation activities to reach 2mn tonnes by 2020.
Once operational, the $11bn Etihad Rail network will cater to freight and passengers across all seven Emirates of the UAE. The network will also form part of the GCC railway network, which will link the UAE to Saudi Arabia in the west, and to Oman in the East.