Abu Dhabi, UAE: 26 January, 2016

Etihad Rail, the developer and operator of the UAE's national rail network, today confirmed that it has suspended the tendering process for Stage Two of the project. All bidders have today been informed in writing.

Stage Two involves the construction of the rail network in the Abu Dhabi Emirate by connecting to the Saudi border at Ghweifat and the Omani border at Al Ain, and by connecting vital areas such as Mussaffah, Khalifa Port and Jebel Ali Port in Dubai.

Etihad Rail commenced commercial operations on Stage One of the rail network, which links Shah and Habshan to the port of Ruwais, after official safety authorizations were granted by the Federal Transport Authority in December 2015.

To date, Etihad Rail has transported four million tonnes of Sulphur from Shah and Habshan to the port of Ruwais for the Abu Dhabi National Oil Company (ADNOC). Once Stage One reaches full commercial capacity, Etihad Rail will transport more than seven million tonnes of Sulphur every year.

The company has suspended the current Stage Two tender process whilst it reviews the most appropriate options for the timing and delivery of this phase of the project. This decision will have no impact on Stage One operations.

HE Nasser Alsowaidi, Chairman of Etihad Rail, said:  "Etihad Rail is one of the biggest and most complex infrastructure projects ever undertaken in the UAE. As we enter 2016, we have been working closely with our partners and stakeholders to assess our strategic priorities for the year. As a result, a decision has been taken to suspend the tendering process for Stage Two whilst we review the most appropriate timing for this investment."

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About Etihad Rail (www.etihadrail.ae)
Etihad Rail was established in June 2009 under Federal Law no. 2, with a mandate to manage the development, construction and operation of the UAE's national freight and passenger railway network. Being built in three stages, 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 six countries of the GCC.

Construction on Stage One has been completed, and the Federal Transport Authority (FTA) has granted Etihad Rail the official safety authorizations to commence commercial operations on Stage One of the network in December 2015. Stage Two will connect the railway to Mussafah, Khalifa Port and Jebel Ali port and will see the railway extend to the Saudi and Omani borders.

In addition to the Operational & Maintenance Agreement with the Abu Dhabi National Oil Company (ADNOC) for the transport of sulphur between Habshan and Shah to Ruwais, Etihad Rail is also in advanced commercial and technical negotiations with other prospective partners, including DP World, ESI, Arkan, and others.

To date, Etihad Rail has signed more than 50 Memorandums of Understanding with a number of customers throughout the Emirates - in industries ranging from petrochemicals and agriculture to aggregates and waste - all of whom recognise rail as the preferred mode of transport for their goods.

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

© Press Release 2016