ABU DHABI, United Arab Emirates: Etihad Rail, the developer and operator of the UAE’s national railway network, has signed a Memorandum of Understanding with ZonesCorp to establish railway and logistics facilities within the Industrial City of Abu Dhabi (ICAD).
Etihad Rail’s logistic facility will complement the Higher Corporation’s Abu Dhabi Logistics City Development Project, covering an area of approximately 6 million square meters. The projects will serve the industrial entities in the Industrial City of Abu Dhabi (ICAD) and Mussafah, and will provide a point of departure for goods bound for Saudi Arabia. The logistic facility will be the closest logistics point to the city of Abu Dhabi.
His Highness Sheikh Theyab Bin Mohamed Al Nahyan, Chairman of Abu Dhabi Department of Transport and Chairman of Etihad Rail, and H.E. Falah Mohammad Al Ahbabi, Chairman of the Department of Urban Planning and Municipalities, Chairman of the Higher Corporation for Specialized Economic Zones, attended the signing ceremony. The agreement was signed by Shadi Malak, CEO of Etihad Rail, and Saeed Eisa Mohammed Al Khyeli, Director-General of ZonesCorp.
The agreement outlines the collaboration between the two parties to form a joint leadership team and qualified task forces to follow up the progress and achievement of the project, as well as ensuring the completion of operational processes in accordance with the specified completion date, optimal performance methodologies and the relevant policies.
Speaking on the occasion, H.H. Sheikh Theyab bin Mohamed Al Nahyan said, “This agreement contributes to achieving our vision to connect cities and industries with a secure and sustainable railway network. It is also part of our mission to find economic logistics solutions for the rail network to connect the entire UAE and provide outstanding services to industries and society. ZonesCorp is a key partner for Etihad Rail as it is the largest developer and operator of purpose-built industrial zones in the UAE and is playing a leading role in developing the nation’s industrial sector.”
“This agreement reinforces our efforts by which Etihad Rail seeks to support alternative and new industries through establishing a new transport system that enhances the existing infrastructure and contributes to improving freight transport. It also promotes the UAE's leading role in shipping traffic, taking advantage of its geographical and economic position as a global logistics hub," His highness concluded.
H.E. Falah Mohammad Al Ahbabi, Chairman of the Department of Urban Planning and Municipalities said, “We are happy to be partnering with Etihad Rail and supporting the development of the industrial and commercial sector in Abu Dhabi. Etihad Rail’s logistic facility contributes to the integration of Abu Dhabi Logistics City, in order to provide a competitive environment for investment projects in the Higher Corporation’s economic zones and reduce operational costs for investors.
“Constructing a logistics facility and railway track, along with the necessary infrastructure, in Abu Dhabi Industrial City (ICAD) will contribute to consolidating logistics operations in one place, which will bring further growth in the process of handling containers and cargos, as well as logistics services. This will help Abu Dhabi to consolidate its established position on the global trade map,” Al Ahbabi said.
The agreement comes in line with ZonesCorp’s ongoing investment in its economic zones and promotion of its continued growth. It is currently home to 650 world-class manufacturing facilities from various industrial sectors in a prime location near Abu Dhabi.
ZonesCorp plays a significant role in the success of the UAE's economy in terms of attracting direct investments from inside and outside the country. Customs exemptions are applied on all products that have been manufactured within their economic zones, which are then exported to GCC countries and all Arab countries which have signed the Free Trade Agreement. In addition to tax exemption on income, raw materials can be imported free of import duties and there are free transfer of profits; factors which contribute to developing an attractive investment option for investors.
The signing of the MoU comes as Etihad Rail prepares to embark on Stage Two of the Etihad Rail network, which will extend 605 kilometers from Ghuweifat on the UAE’s border with Saudi Arabia to Fujairah on the east coast, through ICAD, Khalifa Port, Jebel Ali and Khor Fakkan, to be followed by further route additions.
-Ends-
About Etihad Rail:
Etihad Rail was established in June 2009 under Federal Law No. 2, with the mandate to manage the development, construction and operation of the UAE’s national freight and passenger railway network. The railway network will link the principal centres of population and industry of the UAE, and will form a vital part of the planned GCC railway network across the GCC.
Etihad Rail has successfully completed Stage One of the network which was delivered on schedule and within budget. The route spans 264 km, transporting sulfur from sources at Shah and Habshan to the export point at Ruwais. Stage Two links the United Arab Emirates and Saudi Arabia from Fujairah to Ghuwaifat through Mussafah, Khalifa Port and Jebel Ali Port. Built to international standards, Etihad Rail’s state-of-the-art network will span approximately 1,200 km, acting as a catalyst for economic growth and sustained social development. Upon completion, the railway will redefine logistics and transport in the region, providing a modern, safe, efficient and sustainable mode of transport that will connect all regions of the UAE to its neighbouring GCC countries.
Media Contact:
Etihad Rail Communications team
Tel: +971 2 4999 712
Email: communications@etihadrail.ae
Website: www.etihadrail.ae
Disclaimer: The contents of this press release was provided from an external third party provider. This website is not responsible for, and does not control, such external content. This content is provided on an “as is” and “as available” basis and has not been edited in any way. Neither this website nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this press release.
The press release is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Neither this website nor our affiliates shall be liable for any errors or inaccuracies in the content, or for any actions taken by you in reliance thereon. You expressly agree that your use of the information within this article is at your sole risk.
To the fullest extent permitted by applicable law, this website, its parent company, its subsidiaries, its affiliates and the respective shareholders, directors, officers, employees, agents, advertisers, content providers and licensors will not be liable (jointly or severally) to you for any direct, indirect, consequential, special, incidental, punitive or exemplary damages, including without limitation, lost profits, lost savings and lost revenues, whether in negligence, tort, contract or any other theory of liability, even if the parties have been advised of the possibility or could have foreseen any such damages.
