Etihad Rail signs MoU with Western Bainoona Group
The Etihad Rail network project is worth AED40bn
Etihad Rail has signed a Memorandum of Understanding (MoU) with Western Bainoona Group (WBG).
The deal will enable the latter to use rail for distributions from its crusher location at Tawyeen in Fujairah to the Etihad Rail distribution and export terminals in the UAE.
Commenting on the MoU, Eng. Faris Saif Al Mazrouei, acting CEO of Etihad Rail, said: "By working with Etihad Rail, WBG stands to gain faster and more consistent transit times, lower overall cost for transport and capacity to move a larger quantity of goods at once."
"The agreement will provide Etihad Rail with additional volumes of bulk commodities transport within the UAE and will improve the overall efficiency of WBG's business,” Al Mazrouei added.
The approximate annualised transport by rail volume is set to rise to 10mn tonnes by 2020.
Mohammed Khalfan Al Hameli, chairman, WBG, said: "Our organisation is rapidly expanding and evolving its service offering. Today, the company's strengths lie in producing and selling quarry products, and Etihad Rail will provide us with a new alternative that is on the whole more cost-effective and reliable than existing transport, especially for long haul journeys."
WBG was founded in Abu Dhabi in 1990 and has an annual turnover of approximately AED700mn ($190.5mn).
Etihad Rail has signed a series of MoUs and works closely with key stakeholders throughout the UAE.
The AED40bn ($10.8bn), 1,200km Etihad Rail network will connect industrial areas as well as urban and peripheral communities throughout the country, facilitating trade and fostering economic growth.
The network will also form a vital part of the planned GCC railway network, linking the UAE to Saudi Arabia via Ghweifat in the west and Oman via Al Ain in the east.