Etihad Rail unveils new strategy as it awards contract for stage two

Etihad Rail, the developer and operator of the UAE’s national railway network, has revealed a new strategy even as it embarks on the second stage of operations.

Etihad Rail’s new strategy includes “a set of key pillars that focus on benefiting from a fully developed railway network, providing innovative solutions to support the national wealth and economic diversification in the long term, by linking all major UAE ports”, a statement said.

The operator plans to make “a quantum leap in the logistics sector” by providing solutions for the shipping and distribution processes.

It also aims to achieve growth by linking the major centres of industry and transport to urban and suburban communities.

Etihad Rail has recently signed a series of land lease agreements throughout the UAE to secure the rail network’s transport corridors in all the emirates, the statement said.

It has also announced a set of short and long-term strategic objectives which will be implemented through a series of expansion programmes, the statement added.

The rail operator recently received financing approval for stage two of the UAE’s national rail network, which will be backed by the UAE’s ministry of Finance and the Abu Dhabi Department of Finance.

A five-year contract has been awarded to PMC & Engineering Contracts to cover the development and the supervision of the 605km phase, which will stretch from Ghuweifat on the Saudi border in the west to the UAE’s Port of Fujairah on the east coast.

Major international companies have been pre-qualified and construction tenders have been released within schedule, the statement said.

Etihad Rail has to put on hold the second stage in 2016, after it underwent a restructuring.

Read: UAE’s Etihad Rail suspends phase two of nationwide network

The 264km first phase of the railway, which transports sulphur from Habshan in the Al Dhafra region of Abu Dhabi, to the port at Ruwais, was operational by 2016.

The overall UAE rail network is being developed at a cost of $40bn and will span 1,200km when completed.