DHL Global Forwarding and Etihad Rail, the developer and operator of the UAE National Rail Network, have signed a strategic partnership agreement at Middle East Rail, located in Abu Dhabi National Exhibition Center (ADNEC).
The agreement will see the establishment of a joint venture company that will enable DHL Global Forwarding to use Etihad Rail's network to conduct its main operations within the UAE.
DHL said under the terms of the agreement, DHL Global Forwarding will adopt rail one of its primary modes of transportation to distribute goods throughout the UAE, via the railway network which links key industrial hubs.
"The newly formed joint venture company will further strengthen the sustainable freight offering within the UAE, operating across the Etihad Rail Network," it added.
"The agreement is expected to significantly reduce pressures on road transport and boost trade, commerce, and logistics in the UAE, whilst also playing a key role in helping the UAE meet its environmental responsibility commitments."
DHL said the ambitious 20-year partnership between DHL and Etihad Rail will deliver significant benefits for businesses, optimising use of time and resources, reducing costs and more efficient asset management.
End-to-end logistics in UAE
Furthermore, DHL noted that the partnership will strengthen end-to-end logistics and supply chain services for customers in the region.
With rail considered to be one of the most sustainable modes of transport, Etihad Rail is committed to contributing to the UAE's Net Zero by 2050 strategic initiative, whereby the UAE National Rail Network will contribute to reducing carbon emissions in the road transport sector by 21% by 2050, and each train trip will remove up to 300 trucks off the road.
"The UAE's increasing focus on infrastructural investment in the logistics sector, and DHL Global Forwarding is excited to be part of this journey to support growing capacity requirements through rail freight," said
Amadou Diallo, CEO Middle East & Africa, DHL Global Forwarding.
"Our decades of expertise in rail and multimodal transport solutions, providing fast, secure, and cost-effective connections, make us the right partner to support the development of the railway industry in the UAE," he added.
Gottfried Eymer, CEO of Etihad Rail Freight, also welcomed the partnership.
"We welcome DHL Global Forwarding as a key partner for Etihad Rail as we embark on fulfilling our ambitious targets. With freight operations operational since February, Etihad Rail is pleased to introduce further sustainable transport models within the UAE and continue to stimulate economic growth and sustained social development in the region."
