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Etihad Rail, DHL Global Forwarding ink 20-year partnership

The agreement will see the establishment of a joint venture company that will enable DHL to use Etihad Rail’s network to conduct its main operations within the UAE

by Gulf Business

May 17, 2023

Etihad Rail, developer and operator of the UAE National Rail Network, and DHL Global Forwarding, have signed a 20-year 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.

Etihad Rail has entered a 20-year partnership with DHL Global Forwarding, establishing a joint venture that will utilise the National Rail Network as a main mode of transporting goods, promoting sustainable freight services and supporting UAE trade and logistics sectors. pic.twitter.com/g0ruTWguag

— مكتب أبوظبي الإعلامي (@ADMediaOffice) May 16, 2023

The partnership is said to deliver significant benefits for businesses, optimising use of time and resources, reducing costs and enabling more efficient asset management.

Amadou Diallo, CEO Middle East and 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: “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.”