UAE’s national railway network operator Etihad Rail has entered into a new partnership with construction materials supplier National Quarries for a low-cost, reliable transport solution.
The memorandum of understanding (MoU) signed by the companies allows National Quarries to use the 1,200km Etihad Rail network to distribute its products within the UAE and across the GCC.
With this development, National Quarries will be able to reduce its overall logistics costs and increase its capacity with faster and consistent transit times.
National Quarries owner Al Jazeera Investment chairman Hamad Ali Saif Lootah said: "Etihad Rail will provide us with a more economical and reliable transport system that will greatly benefit our operations as we continue our regional expansion.
"Its new logistics strategy for bulk transportation will enable us to have forward distribution centres closer to our customers and ensure better quality control for our products."
The agreement follows the Etihad Rail’s plan to build relationships with regional businesses and other stakeholders.
Etihad Rail acting CEO Faris Saif Al Mazrouei said: "This enhanced connectivity will bring businesses closer together, extending geographic markets, making a greater labour force available, and facilitating more efficient trade."
National Quarries is engaged in building and road construction products across GCC and it is expected that the company is expected to transport two million tonnes of product by 2020 using Etihad Rail.
Using an AED40bn ($10.8bn) investment, Etihad Rail will provide freight and passenger services, which will link urban and peripheral communities, as well as boost economic development across the country.
The network will also connect UAE to Saudi Arabia through Ghweifat in the west and to Oman via Al Ain in the east.
Image: Officials of Etihad Rail and National Quarries during the signing ceremony. Photo: courtesy of Etihad Rail.