Etihad Rail joins forces with Borouge for sustainable transport

Standing from left, Dr Sultan Al Jaber, Minister of Industry and Advanced Technology; Sheikh Theyab bin Mohamed, member of the Abu Dhabi Executive Council; and Suhail Al Mazrouei, Minister of Energy aShow more

Etihad Rail, the developer of the UAE railway network, has joined forces with Borouge, the joint venture between Adnoc and Austrian chemicals producer Borealis, to ensure more sustainable transport.

Under the agreement, Etihad Rail will transport 1.3 million tonnes of Borouge’s polyolefins annually from its petrochemical complex in Al Ruways Industrial City for export to customers.

Sheikh Theyab bin Mohamed, member of Abu Dhabi Executive Council, chairman of Emirates Council for Balanced Development and chairman of Etihad Rail, witnessed the signing of the terms sheet for the strategic partnership, Abu Dhabi Government Media Office said in a statement on Tuesday.

“This important collaboration between Borouge and Etihad Rail contributes to the growth of Abu Dhabi’s industrial sector and will support Borouge’s ongoing drive to optimise its logistics platform, lowering both its operating costs and carbon emissions,” said Dr Sultan Al Jaber, Minister of Industry and Advanced Technology, Adnoc managing director and group chief executive, and chief executive and chairman of Borouge.

“The partnership reinforces Borouge’s resilience and accelerates the export of its Made In UAE products using more sustainable modes of transport, while underlining the partners’ commitment to the UAE’s Net Zero by 2050 Strategic Initiative.”

Established in 1998, Borouge is a petrochemical company that employs more than 3,000 people and serves customers in more than 50 countries across Asia, the Middle East and Africa.

It provides polyolefin solutions for the agricultural, infrastructure, energy, advanced packaging, mobility and healthcare industries.

Adnoc owns 54 per cent of the company, while Borealis controls 36 per cent.

Its partnership with Etihad Rail also supports the national In-Country Value programme, with 88 per cent of the value flowing back into the local economy, boosting economic diversification and growth, the statement said.

The agreement also includes the development of a rail freight terminal in Al Ruways Industrial City, extending over an area of more than one million square metres, where the terminal will handle loading and unloading as well as storage and maintenance of shipping containers.

By using rail, the time required to transport Borouge’s products will be reduced to four hours compared with 12 hours through other modes of transport.

“This strategic partnership comes in line with Etihad Rail's efforts to provide logistics solutions to some of the country’s largest companies, where they can transport goods through the rail network at reduced costs and time,” Sheikh Theyab said.

“In doing so, Etihad Rail also contributes to reducing carbon emissions, in line with the objectives of the UAE.”

Sheikh Theyab also led a meeting with representatives of private rail industry companies to discuss the commercial opportunities provided by the UAE National Rail Network to the private sector.

He announced the formation of an advisory committee for enhancing the private sector’s benefits from the National Rail Network.

Etihad Rail has successfully reserved 60 per cent of the network’s annual transport capacity through the commercial agreements it has signed with key companies.

The Etihad Rail line will span about 1,200km and link 11 cities and areas across the UAE, from the border with Saudi Arabia to Fujairah in the north.

Its new high-tech trains were unveiled in August, with the diesel and electricity-operated locomotives providing 4,600 brake horsepower.