While transportation of passengers and cargo by air to and from Dubai and other Gulf countries has been universally known for years, very little is known to the rest of the world about the United Arab Emirates’ rail system – a system on an expansion course to become the biggest rail freight carrier of the Gulf Cooperation Council (GCC), a collection of countries comprising of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.
With an eye on reaping the benefits of synergetic connection, the UAE’s rail system, Etihad Rail has established strong links with the manufacturing sector, not just in the Gulf region but also in other markets that have global supply chains.
Dubai-based logistics experts believe that cooperation between Etihad Rail and the manufacturing world will revolutionize the transport and distribution of goods; this could help transform the UAE and the GCC into a logistics nerve cell of the East-West trade.
Etihad Rail began by building connections to all the important cities of the UAE. The Dh50 billion (US$13.61 billion) project aims to create an integrated transport system for both goods and passengers.
Rail transportation is increasingly seen as an important catalyst for bolstering trade not only among the GCC member nations but also beyond the region by extending to other Middle Eastern countries. It was not surprising, therefore, that high-ranking dignitaries, including Sheikh Mohammed bin Rashid Al Maktoum, the UAE’s vice president and ruler of Dubai, and Sheikh Mohamed bin Zayed Al Nahyan, the crown prince of Abu Dhabi and deputy commander-in-chief of the armed forces, personally turned out to present the country’s biggest integrated rail systems for transporting goods and passengers.
The Etihad Rail Company, which oversees the development and operation of the UAE’s railway, has been building and operating the national railway line.
Etihad Rail is playing a key role in realizing the vision of the UAE government which is giving priority to developing this strategically important project. Besides interconnecting the important cities of the UAE, Etihad Rail has also the eyed expansion of its operations beyond the UAE borders.
Etihad Rail could already last year reserved some 40% of the annual transport capacity of the network which after completing the second phase of its development is expected to reach 60 million tonnes of goods annually.
Abu Dhabi-based Etihad Rail, founded in 2009, is one of the biggest infrastructure projects in the region; because of its logistical strength, it is increasingly viewed as a partner for the key industries of the country and also in neighbouring states.
Etihad Rail has successfully completed stage one of the network. Stage one is fully operational and the route spans 264 km, transporting granulated sulphur from sources at Shah and Habshan to the export point at Ruwais.
Etihad Rail has transported more than 30 million tonnes of granulated sulphur – the equivalent of around 2.8 million truck trips.
Stage two construction was launched in 2018, with 70% of it achieved in less than 24 months despite the challenges presented by the Covid-19 pandemic,
Stage two links the UAE and Saudi Arabia from Fujairah Port to Ghuweifat through Mussafah, Khalifa Port, and Jebel Ali Port.
Etihad Rail’s network will span approximately 1,200 km. Upon completion, the railway is expected to provide a modern, safe, efficient, and sustainable mode of transport that will connect all regions of the UAE to its neighbouring GCC countries and even beyond.
The UAE’s railway programme is comprised of a number of development and economic projects aimed at accelerating the development of the UAE, transforming it into a hub suitable for all sectors, and also establishing a centre for talents and investors.
Sheikh Mohammed bin Rashid Al Maktoum has called Etihad Rail the “biggest project for consolidating the strength of the Union in the next 50 years. It will link 11 important cities and regions of the UAE with one another.”
Sheikh Mohamed bin Zayed Al Nahyan observed: “The National Railways Programme reflects the true meaning of integration into our national economic system, as we see the largest partnership between government entities at the federal and local levels. It comes to support a national vision to connect the country’s key centres of industry and production, open new trade routes and facilitate population movement, creating the most developed work and life environment in the region.”
The three important projects of the programme are freight rail services, secondly extending the passenger services to 11 cities of the UAE, drastically cutting travel time, for example, to only 50 minutes from Abu Dhabi to Dubai, or to 100 minutes from Abu Dhabi to Fujairah. The number of passengers is projected to rise to 26.5 million annually by 2030.
The third project is the integrated transport service for which an innovation centre for integrating the “smart transportation solutions” is being set up. A city metro network, linked with the railway passenger system. Will support the transport system within the UAE. The development of “smart applications/solutions” will facilitate travel planning and reservation as well as the integration of logistical cooperation, and port and customs services, besides integrating logistics solutions.
Maintaining close proximity to the industry, Etihad Rail has been cooperating with the Global Manufacturing and Industrialization Summit (GMIS), a joint initiative of the United Nations for Industrial Development Organisation (UNIDO) and the UAE Ministry of Industry and Advanced Technology (MOIAT).
The GMIS was established in 2015 in order to build “bridges” between the manufacturing industry, governments and non-government organizations (NGOs), technologies, and investors, leading to what is called the fourth industrial revolution transformation in the manufacturing sector.
According to Etihad Rail, the partnership with the industry underscores the importance of the railway network as a growth engine for the manufacturing sector. Indeed, this attribute was highlighted during GMIS Week held in November at the EXPO exhibition in Dubai.
Omar Al Sebeyi, the acting executive director of Etihad Rail’s commercial sector, emphasized the rail company’s commitment to accelerating industrialization as well as the economic growth and social development in the UAE and also in the GCC.
“As we build the next generation of transport and logistics solutions, we constantly seek new partnerships and collaborations with organizations who are passionate about enhancing the UAE’s regional and global competitiveness. We are pleased to partner with the Global Manufacturing and Industrialization Summit in support of its mission to drive industrial transformation and economic progress in the UAE and globally,” he commented on cooperation with GMIS.
Badi Al Olama, the head of the GMIS Organizing Committee, said that the GMIS and Etihad Rail wanted to spotlight the advanced capabilities of the UAE in transport and the manufacturing industry but also the country’s potential as a world-class logistics hub.
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By Manik Mehta
International Correspondent | New York