Emirates Steel signs MoU with Etihad Rail

Etihad Rail, the developer and operator of the UAE's national railway network and Emirates Steel have signed a Memorandum of Understanding (MoU) to use rail as the primary method for steel transportation across the UAE.

The agreement is made at a time when the construction of the rail network is about to commence; this will represent a key step towards easing the transportation issues associated with the major flows of Emirates Steel's products and raw materials.

For Emirates Steel, the partnership will help the company meet the distribution needs of the growing demand for quality steel products from the region's fast-developing economies.

The MoU was signed by Richard Bowker CBE, CEO of Etihad Rail, and Engineer Saeed Ghumran Al Romaithi, Acting CEO at Emirates Steel.

Expressing his delight to partner with Etihad Rail at this early stage in its development, Al Romaithi said: "We are one of the heaviest users of road haulage in the Emirates. Therefore, real environmental benefits will be realised by taking trucks off the road, easing road congestion and enhancing road safety."

He described Emirates Steel as an environmentally conscious corporate citizen: "Protection of the environment is a key priority of Emirates Steel's operations".

Commenting on the new collaboration, Etihad Rail CEO Richard Bowker CBE, said: "Both Etihad Rail and Emirates Steel are playing an important role in the overall development of the UAE as well as in driving the country's economic growth. We are honored to provide Emirates Steel with a more effective transport solution and look forward to working with them to further our goal of fostering economic development in the region".

Etihad Rail Executive Director - Commercial Shadi Malak also added: "Our network will provide Emirates Steel with a modern, safe and sophisticated means of transport that is also environmentally sound and sustainable. Etihad Rail will enable an efficient, reliable, and feasible means to transfer incoming raw materials to the factory and their finished goods for export".

Abu Dhabi National Oil Company (ADNOC), Etihad Rail's first customer, will soon use rail to transport granulated sulphur from sources in Shah and Habshan to Ruwais for export.

Construction on Phase One of the project - a 266km route that will link these three cities in the Emirate's Western Region - is expected to begin this summer, and is scheduled to be commercially operational in 2013.

When complete, the Dh40 billion Etihad Rail network will span 1,200km across the Emirates and will also form a vital part of the greater GCC network.