Etihad Rail, the developer of UAE's national railway network, has reached an agreement with leading UAE petrochemical company Borouge, to transport 1.3 million tonnes of polyolefins annually from its petrochemical complex in Al Ruways Industrial City via rail for export.
With the sealing of this partnership, Borouge has become one of Etihad Rail’s main customers.
The deal also includes the development of a rail freight terminal in Al Ruways Industrial City, extending over 1 million sq m area, where the terminal will handle loading and unloading, as well as storage and maintenance of shipping containers.
By using rail, the time required to transport Borouge’s products will be reduced to 4 hours compared to 12 hours via other modes of transport, said a statement from Etihad Rail.
The agreement was signed by Etihad Rail CEO Engineer Shadi Malak and Borouge CEO Hazeem Sultan Al Suwaidi in the presence of Etihad Rail Chairman HH Theyab bin Mohamed bin Zayed Al Nahyan; Dr Sultan Ahmed Al Jaber, Minister of Industry and Advanced Technology, Managing Director and CEO of Adnoc and Chairman of Borouge; and Suhail Mohamed Al Mazrouei, Minister of Energy and Infrastructure, it stated.
Al Nahyan said: "This strategic partnership comes in line with Etihad Rail's efforts to provide logistics solutions to some of the country’s largest companies, where they can transport goods through the rail network at reduced costs and time."
"In doing so, Etihad Rail also contributes to reducing carbon emissions, in line with the objectives of the UAE," he stated.
Dr Al Jaber said this important collaboration contributes to the growth of Abu Dhabi’s industrial sector and will support Borouge’s ongoing drive to optimize its logistics platform, lowering both its operating costs and carbon emissions.
"The partnership reinforces Borouge’s resilience and accelerates the export of its ‘Made In UAE’ products using more sustainable modes of transport, while underlining the partners’ commitment to the UAE’s Net Zero by 2050 Strategic Initiative," he added.-TradeArabia News Service