Etihad Rail, the developer and operator of the UAE’s national railway network, has signed a deal with Ceva Logistics, a leading supply chain management company.

The memorandum of understanding (MoU) will provide Ceva Logistics with a more cost-effective and reliable mode of transport to complement its services, said a statement.

The multi-modal connectivity, furthermore, offered by Etihad Rail will eventually lead to a more effective utilisation of the company’s assets in the UAE, it said.

The MoU was signed by Faris Saif Al Mazrouei, chief executive officer of Etihad Rail, and Jerome Lorrain, executive vice president – Balkans, Africa, Middle East and Africa, Ceva Logistics.

“This agreement is the first step towards the establishment of a long and strategic partnership between our two companies,” said Al Mazrouei.

The Etihad Rail project, which is being delivered in three key stages of development, will help the business community in the transportation of bulk and non-bulk materials, offering tailor-made solutions to differing customer needs, said the statement.

On completion, the Etihad Rail network will span approximately 1,200 km across the UAE, providing both freight and passenger services.

It will also form a vital part of the GCC railway network, linking the UAE to Saudi Arabia through Ghweifat in the west and Oman through Al Ain in the east.

In other GCC railway news, Dubai’s Roads and Transport Authority is reportedly seeking more than $2 billion in financing for an extension of the metro system to the Expo 2020 site.

The authority is seeking financing for the above-ground 15 km extension. Seven new stations are to be added to the Red Line.