Etihad Rail and CEVA Logistics have signed a memorandum of understanding (MoU).
The agreement is designed to provide the logistics firm with a more cost-effective and reliable mode of transport for its UAE operations.
CEVA Logistics contends that once completed, the national railway network will allow it to grow its business in the Emirates.
The MoU was signed by Faris Saif Al Mazrouei, chief executive officer of Etihad Rail, and Jerome Lorrain, CEVA Logistics’ executive vice president – Balkans, Middle East, and Africa.
Commenting on the deal, Al Mazrouei said: “This agreement is the first step towards the establishment of a long and strategic partnership between our two companies. We look forward to working closely with CEVA Logistics and play our role in the greater diversification of the UAE economy.”
Lorrain added: “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.”
Etihad Rail, which will be used to transport bulk and non-bulk materials, will feature freight facilities positioned to connect production hubs with pints of import and export.
Once finished, the UAE’s national rail network will span approximately 1,200km across the Emirates, providing both freight and passenger services.
The Etihad Rail project is scheduled to complete in 2018.
