Abu Dhabi, UAE: Etihad Rail, developer and operator of the UAE National Rail Network, and DHL Global Forwarding , have signed a strategic partnership agreement at the Middle East Rail 2023 event, held at Abu Dhabi National Exhibition Centre (ADNEC). The agreement will see the establishment of a joint venture company that will enable DHL Global Forwarding to use Etihad Rail’s network to conduct its main operations within the UAE.

Under the terms of the agreement, DHL Global Forwarding will adopt rail as one of its major modes of transportation to distribute goods throughout the UAE via the railway network that links key industrial hubs.

The newly formed joint venture company will further strengthen the sustainable freight offering within the UAE, operating across the Etihad Rail Network. The agreement is expected to significantly reduce pressures on road transport and boost trade, commerce, and logistics in the UAE, while also playing a key role in helping the UAE meet its environmental responsibility commitments.

The ambitious 20-year 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 partnership will also strengthen end-to-end logistics and supply chain services for customers in the region. DHL’s robust rail freight products offer secure and reliable transportation, and is also an environmentally friendly alternative.

With rail considered to be one of the most sustainable modes of transport, Etihad Rail is committed to contributing to the UAE’s Net Zero by 2050 goals, whereby the UAE National Rail Network will contribute to reducing carbon emissions in the road transport sector by 21 per cent by 2050, with each train trip removing up to 300 trucks off the road.

Amadou Diallo, CEO Middle East & Africa, DHL Global Forwarding, said: “The UAE’s 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. Our decades of expertise in rail and multimodal transport solutions, providing fast, secure, and cost-effective connections, make us the right partner to support the development of the railway industry in the UAE.”

Gottfried Eymer, CEO of Etihad Rail Freight, said: “We welcome DHL Global Forwarding as a key partner for Etihad Rail as we embark on fulfilling our ambitious targets. 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.”

The agreement between Etihad Rail and DHL Global Forwarding is one of the largest collaborations for the transport industry and showcases the respective organisation’s commitment to the UAE’s sustainability agenda.

-ENDS-

About DHL: DHL is the leading global brand in the logistics industry. Our DHL divisions offer an unrivalled portfolio of logistics services ranging from national and international parcel delivery, e-commerce shipping and fulfillment solutions, international express, road, air and ocean transport to industrial supply chain management. With about 395,000 employees in more than 220 countries and territories worldwide, DHL connects people and businesses securely and reliably, enabling global sustainable trade flows. With specialized solutions for growth markets and industries including technology, life sciences and healthcare, engineering, manufacturing & energy, auto-mobility and retail, DHL is decisively positioned as “The logistics company for the world”.

DHL is part of Deutsche Post DHL Group. The Group generated revenues of more than 94 billion euros in 2022. With sustainable business practices and a commitment to society and the environment, the Group makes a positive contribution to the world. Deutsche Post DHL Group aims to achieve net-zero emissions logistics by 2050.

About Etihad Rail: Construction on the network expansion to connect the emirates spanning across the entire UAE, from Ghuwaifat on the border with Saudi Arabia to Fujairah on the eastern coast, began in January 2020. In February 2023, the UAE National Rail Network was inaugurated following its completion whilst also marking the launch of freight operations in the UAE.

The National Rail Network now links all emirates, connecting residential, industrial, and commercial centres with four key ports across the UAE. This includes seven logistic centres located in Ruways, the Industrial City of Abu Dhabi (ICAD), Khalifa Port, Dubai Industrial City (DIC), Jebel Ali Port, Al Ghayel Dry Port, and Fujairah Port.