Tarmac Middle East, a subsidiary of the UK-based quarry firm Tarmac Limited, has signed a memorandum of understanding with Etihad Rail to transport materials through the rail network, the company said in a statement.
As per the deal, Tarmac Middle East will utilise the rail network’s operations for the distribution of its products from its local arm Al Futtaim Tarmac Quarry Product Company in Ras Al Khaimah to Etihad Rail’s distribution and export terminals in the UAE.
It will also enable distribution to other GCC countries once Etihad Rail connects to the mainline rail network by the end of 2018.
The agreement will provide Etihad Rail with additional volumes of bulk commodities transport capability from its export terminals to other locations within the UAE, the statement said.
“We are very pleased that we have reached such a mutually beneficial agreement that will enable Tarmac Middle East to enhance its logistic operations, while at the same time increase Etihad Rail’s distribution capacity beyond its export terminals,” said Faris Saif Al Mazrouei, acting CEO of Etihad Rail.
“Etihad Rail will provide its partners with faster, reliable, higher capacity and lower cost transportation services across the UAE and the wider GCC region in the future.”
The volume of products that would be transported by Tarmac Middle East via Etihad Rail is estimated to reach 6,000,000 tonnes by 2020, the company said.
“Logistics and transport are some of our biggest operational costs,” said Azmat Jafri, UAE country manager, Al Futtaim Tarmac Quarry Product Company.
“Utilising Etihad Rail services will provide us with cost-effective and reliable transport and we look forward to a long-term and successful partnership.”
The Dhs40 billion Etihad Rail project, spanning almost 1,200 kilometres, will transport both freight and passengers across the UAE. The railway line will be built in three phases with the first phase scheduled to be completed by 2014.