DHL to operate on UAE's Etihad Rail network under new partnership

The two companies have set up a joint venture under a 20-year agreement

Etihad Rail's partnership with DHL seeks to boost end-to-end logistics and supply chain services and reduce pressures on road transport. Photo: Etihad Rail

Etihad Rail, developer and operator of the UAE National Rail Network, has signed a 20-year partnership agreement with DHL Global Forwarding to set up a joint venture as part of the country's efforts to strengthen its freighter network.

The joint venture, announced at the Middle East Rail 2023 event in Abu Dhabi, will enable DHL to use Etihad Rail’s network to conduct its main operations within the UAE, Etihad Rail said in statement on Tuesday.

As part of the agreement, DHL will adopt rail as one of its major modes of transport to distribute goods throughout the UAE via the railway network, which connects the country's key industrial centres.

DHL Global Forwarding will serve as “key partner for Etihad Rail as we embark on fulfilling our ambitious targets”, said Gottfried Eymer, chief executive of Etihad Rail Freight.

“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.”

Etihad Rail’s first freight line opened in Abu Dhabi in 2016, transporting sulphur from the gasfields to Ruwais port.

Freight services across the country were formally launched in February.

The network consists of a fleet of 38 locomotives and more than 1,000 wagons.

Freight trains will travel at speeds of up to 120kph, connecting the seven emirates, four major ports and other logistics centres across the country.

It includes a number of charging stations located in Ruwais, the Industrial City of Abu Dhabi, Khalifa Port, Dubai Industrial City, Jebel Ali Port, Al Ghail and Fujairah Port.

These locations are a major hub for local and regional distribution and logistics services, as they include customs warehouses and on-site cargo inspection services.

About 20 million tonnes of cargo are expected to be transported across the UAE this year with a target of 60 million tonnes by 2030, Mr Eymer told The National.

The partnership between Etihad Rail and DHL will “deliver significant benefits for businesses, optimising use of time and resources, reducing costs and enabling more efficient asset management”, the Etihad Rail statement said.

It will also boost end-to-end logistics and supply chain services while significantly reducing pressures on road transport. It is also expected to boost trade, commerce and logistics in the UAE.

The newly formed joint venture company will also strengthen the sustainable freight offering within the UAE.

The UAE National Rail Network aims to contribute to reducing carbon emissions in the road transport sector by 21 per cent by 2050, with each train trip aiming to remove up to 300 lorries from the road.

“The UAE is 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, chief executive of Middle East and Africa at DHL Global Forwarding.