Etihad Rail and Borouge Sign Strategic Partnership

His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail, witnessed the signing of the terms sheet for a strategic partnership for sustainable transportation between Etihad Rail and Borouge to transport 1.3 million tonnes of Borouge’s polyolefins annually  from its petrochemical complex in Al Ruways Industrial City via rail for export to customers.

His Excellency Dr. Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of the Abu Dhabi National Oil Company (ADNOC), and Chairman of Borouge; and His Excellency Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, witnessed the signing as well.  

The agreement was signed by Eng. Shadi Malak, CEO of Etihad Rail, and Hazeem Sultan Al Suwaidi, CEO of Borouge, in the presence of members of Etihad Rail and Borouge’s Board of Directors.

His Highness Theyab bin Mohamed bin Zayed Al Nahyan said: “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.

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

His Highness highlighted the role of ADNOC in supporting railway projects, as it was the first to use Etihad Rail’s services to transport granulated sulfur across the UAE.

His Excellency Dr. Sultan Al Jaber, UAE Minister of Industry and Advanced Technology, Managing Director, ADNOC Group Chief Executive Officer and Chairman of Borouge, said: “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 optimize its logistics platform, lowering both its operating costs and carbon emissions.

“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."

This partnership supports the national In-Country Value programme, with 88% of the value flowing back into the local economy, boosting economic diversification and growth.

Under the terms of this partnership, Borouge becomes one of Etihad Rail’s main customers.

It 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 4 hours compared to 12 hours via other modes of transport. 

Strategic meeting with representatives of the private sector to discuss ways to benefit from Etihad Rail’s freight services

Following the signing of the strategic partnership, His Highness Theyab bin Mohamed bin Zayed Al Nahyan chaired a meeting with representatives of private companies in the rail industry, which was dedicated to discussing the commercial opportunities provided by the UAE National Rail Network to the private sector.

The meeting also covered the different ways to benefit from Etihad Rail’s freight services to support the development of an integrated transport system, which provides services at low costs and with high levels of security, efficiency, reliability, and sustainability.

The signing of partnership and the meeting with private companies came during a tour by His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, to the ICAD rail freight terminal, to oversee the progress in the development of the terminal.

The terminal is the largest rail freight terminal in the UAE, built over an area of more than 2.7 million square feet, and its various facilities, which include more than 22 buildings to support operations

Etihad Rail has successfully reserved 60% of the network’s annual transport capacity. This was achieved through the commercial agreements Etihad Rail has signed with key companies.