Etihad Rail has signed a memorandum of understanding (MoU) with supply chain management firm Ceva Logistics to offer the latter a more cost-effective and reliable mode of transport for its UAE operations.

According to Etihad Rail, its multimodal connectivity will allow Ceva to effectively use its assets in the UAE.

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Etihad Rail CEO Faris Saif 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."

"We look forward to working closely with CEVA Logistics and play our role in the greater diversification of the UAE economy."

Being delivered in three key stages of development, the Etihad Rail project will be used to transport bulk and non-bulk materials, offering tailor-made solutions to differing customer needs.

The UAE’s national railway network operator noted that the network routes have been designed to accommodate all key customer sectors, with freight facilities positioned to connect production hubs with points of import and export.

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The 1,200km Etihad Rail project is a part of the Gulf Cooperation Council (GCC) Railway Network, linking the UAE to Saudi Arabia through Ghweifat in the west and Oman through Al Ain in the east.

In addition, the network connects the UAE to Saudi Arabia through Ghweifat in the west and Oman through Al Ain in the east.

Ceva Logistics Balkans, Africa, Middle East and Africa EVP Jerome Lorrain said: "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."

Stage one of the railway network has been completed and trains carrying granulated sulphur are currently running between Habshan and Ruwais in the western region of Abu Dhabi on a trial basis.