Etihad Rail signs strategic MoU with Bin Lahej Crushers

Abu Dhabi, UAE, 14 March 2015: Etihad Rail, the developer and operator of the UAE's national railway network, has signed a strategic partnership to enhance the distribution network of Bin Lahej Crushers, a specialist in the production and sale of quarry products.

This is the latest in a series of agreements Etihad Rail has signed with various crushing, quarrying and construction companies which have selected rail as the preferred distribution solution. Once commercial operations are launched, the railway's freight services will benefit the UAE's aggregates sector significantly by providing faster, reliable, more economic and higher capacity logistics services across the emirates and the wider GCC region.

Under the Memorandum of Understanding (MoU), Bin Lahej Crushers will use the UAE rail network during Stage Three to transport an annual volume of five million tons from the Bin Lahej Crusher location in Tawyeen-Fujairah to Etihad Rail distribution and export terminals across the UAE. The arrangement will deliver a cost-effective and reliable transport solution for Bin Lahej Crusher, as the company continues to grow its business across the UAE. The five million tons of volume for Bin Lahej comprises approximately nine per cent of the total annual aggregate flow the rail network will transport from the Northern Emirates once Stage Three is operational.

The 1,200km Etihad Rail project is being delivered in three key stages of development. Construction of Stage One, which connects Shah and Habshan to the Ruwais port, has recently been completed and preparations are underway for work on the 628-km Stage Two line. Stage Three, which will stretch 279km in length, will focus on transporting bulk commodities in the Northern Emirates.

Commenting on the MoU, Faris Saif Al Mazrouei, CEO of Etihad Rail, said: "Etihad Rail is a strategic initiative committed to supporting business and economic growth in the UAE. By partnering with companies such as Bin Lahej Crushers, the national rail project will tremendously improve the logistics networks of key business sectors and revolutionize the transport of goods in the country."

Mohammed Saleh Mohammed Bin Lahej, Group CEO of Saleh Bin Lahej Companies said: "The agreement with Etihad Rail will allow us to better serve our customers' evolving business needs by providing faster and more reliable transit and allowing us greater capacity to carry larger quantities at a single time. Rail will also lower our overall transport costs, improving the company's operational efficiency significantly."

Established in Fujairah in 2003, Bin Lahej Crusher LLC is part of Saleh Bin Lahej Group, a rapidly expanding construction conglomerate with activities across the UAE and GCC region.

The national rail project will be used to transport bulk and non-bulk materials, offering tailor-made solutions to differing customer needs. Network routes have been designed to accommodate all key customer sectors, with stations positioned to connect production hubs with points of import and export.

Upon completion, the Etihad Rail network will span approximately 1,200 kilometres across the UAE, transporting both freight and passengers. It will connect urban and peripheral communities, facilitate trade, open up communication channels and foster economic development across all Emirates in the UAE. The network 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.

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, with services between Habshan and Ruwais already operational on a testing basis since September 2013. 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.

Etihad Rail has recently signed an 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 54 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 2015