A unified rail strategy will boost trade

Abu Dhabi and Dubai could become the dominant logistics hub for the region, so long as they collaborate rather than compete with their ports and airports.

Etihad Rail's proposal to build dedicated rail logistics hubs alongside Abu Dhabi International Airport and Dubai World Central-Al Maktoum International Airport could be the catalyst for the UAE becoming the region's dominant logistical centre. As The National reported yesterday, Etihad Rail has been in discussions with Abu Dhabi and Dubai airports since late last year, canvassing the possibility of extending the breadth of the country's integrated trade infrastructure.

If the project goes through, it will offer “multi-modal solutions to third party logistics providers”, according to Etihad Rail. If fully linked to the deepwater terminals at Khalifa Port and Jebel Ali, the network will comprise a formidable international logistical centre.

Some collaboration is already in place. Abu Dhabi Ports Company has recently announced its plans to link its facilities in Khalifa Industrial Zone (Kizad) and Khalifa Port to the national rail network. But for it all to work seamlessly, it would require cooperation between the authorities in Abu Dhabi and Dubai in the areas of operations, legal frameworks and quality performance standards. This is an opportunity for the two emirates to act in concert to forge a world-class facility between them.

Given that the UAE already has a reputation as an entrepot for the Middle East, Africa and Europe, the project would be a strategic investment that should facilitate international trade by creating value-added services as goods move through an all-inclusive supply chain. Abu Dhabi and Dubai World Central airports and the two sea ports – Kizad and Jebel Ali – are geographically close to each other, which brings a great opportunity to create a facility unmatched in the Middle East.

Indeed, across the GCC, there are no two cities the size of Abu Dhabi and Dubai so close together. That gives the UAE a real competitive advantage, especially as the GCC-wide rail network project becomes a reality. This plan, which would link all the GCC cities down the east of the Peninsula and stretch across Saudi Arabia, is a real opportunity.

By acting first, and in a cohesive rather than competitive manner, the UAE’s two biggest cities could cement an advantage that will benefit them both for years to come.