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Etihad Rail signs JV to run UAE’s first freight service

The developer and operator of the UAE’s national railway network has signed a joint venture with DB Schenker Rail, a subsidiary of Germany-based Deutsche Bahn, or DB.

Etihad Rail, in a joint venture partnership with Germany’s Deutsche Bahn, will operate and maintain the country’s first freight rail between Shah and Habshan to Ruwais.

The developer and operator of the UAE’s national railway network has signed a joint venture with DB Schenker Rail, a subsidiary of Germany-based Deutsche Bahn, or DB. The new company, Etihad Rail DB, will manage operations for stage one of the Etihad Rail network, transporting granulated sulphur from Shah and Habshan to Ruwais. Two trains will transport 22,000 metric tonnes of sulphur per day.

DB is Europe’s largest railway company, operating passenger and freight services on the approximately 33,500km German rail network. Etihad Rail DB, which will be led by its chairman Mattar Al Tayer, will initially provide railway operations and maintenance expertise for stage one, setting the foundation to also act as consultant for the operations of the future stages of the Etihad Rail network.

Nasser Alsowaidi, chairman of Etihad Rail, said: “Deutsche Bahn and DB Schenker Rail are the ideal partners to help spearhead a successful, modern railway for the UAE for generations to come.”

“Facilitating knowledge transfer and sharing of best practices, the joint venture is a very positive step forward for Etihad Rail, furthering our commitment to provide the UAE with a world-class, modern, integrated and efficient rail network that will drive economic position.”

Al Tayer, who is also vice-chairman of Etihad Rail, added: “The UAE has successfully developed and managed other mega-infrastructure projects, and Etihad Rail DB will play a vital role in integrating rail into the nation’s state-of-the-art transport system. The company will pave the way for the railway operations in the UAE and set a benchmark in the region.”

Dr Rüdiger Grube, Chairman of the management board and chief executive officer of DB, said: “The Etihad Rail network heralds a new era in transport. We are confident in the vital role it will play in strengthening the UAE’s strategic growth and social development.”