Agreement paves the way for an intermodal rail terminal at Jebel Ali Port, securing the Dubai port as a key node in the emerging regional rail network

Abu Dhabi, UAE, 8 May 2012: Etihad Rail - the master developer and operator of the UAE's national railway network - announced today that it has signed a Memorandum of Understanding (MoU) with DP World for the development of an intermodal rail terminal in Jebel Ali Port. This important agreement, which was signed by His Excellency Nasser Al Sowaidi, Chairman of Etihad Rail, and His Excellency Sultan Ahmed Bin Sulayem, Chairman of DP World, represents a further significant step forward in the development of the rail network. 

The intermodal rail terminal at Jebel Ali will enable the more efficient transfer of containerised freight arriving at the port, bringing substantial benefits to logistics companies and the UAE economy as a whole.  DP World, a leader in international marine terminal operations and development whose flagship Jebel Ali Port has been voted "Best Seaport in the Middle East" for the last 17 consecutive years, has already earmarked a strategic potential plot for the intermodal rail terminal, adjacent to Jebel Ali Maritime Terminal 1 and close to Terminal 2. The team at DP World will oversee the building and operation of the loading and unloading facilities at the rail terminal while Etihad Rail will construct and own the railway infrastructure and manage the rail services to and from the terminal. 

Commenting on the MOU signing, HE Nasser Al Sowaidi, Chairman of Etihad Rail, said: "This important MOU with DP World is a key milestone in securing Jebel Ali Port as an integral part of the Etihad Rail network, and represents a significant step forward in the network's overall development.  We are delighted to have DP World on board as a partner in our strategic national project.  Our collaboration with them in creating an intermodal rail terminal inside Jebel Ali Port will enable the efficient transfer of containerised freight from ocean vessels onto the rail network and vice versa, ultimately driving the economic growth of the UAE while being closely aligned with the UAE Vision 2021 and Abu Dhabi Vision 2030."

DP World Chairman HE Sultan Ahmed Bin Sulayem said:  "We are delighted to formally sign this MOU with Etihad Rail.  The rail terminal and the Etihad Rail network as a whole will add significantly to the efficiency we can offer customers at our flagship Jebel Ali port.  With state of the art facilities at Jebel Ali, able to serve the largest vessels in the world, supported by the latest e-trade technology, and the Dubai Logistics Corridor linked to the Dubai World Central airport, Jebel Ali will be fully multi-modal, connecting sea-road-rail-air.  This will add enormously to the efficiency of the supply chain and reinforce Dubai's status as both a regional hub and a gateway for cargo for the UAE and the wider Middle East, Subcontinent and East Africa region."

The MoU highlights how the rail network can offer logistics companies a safer, more efficient and more environmentally-friendly solution to their transportation requirements. The shift from truck to rail transportation will reduce truck traffic at the port terminal and on the roads surrounding Jebel Ali while also being more cost effective for businesses over long haul moves. One Etihad Rail train will carry up to 260 TEU's (twenty-foot equivalent container units), which, if transported by road, would require at least 130 trucks, and by 2030 it is expected that the Jebel Ali intermodal rail terminal will have a capacity to handle the transfer of 5 million TEU's per annum.

The signing of the MOU with DP World further expands Etihad Rail's already impressive list of partners and customers.  In October last year Etihad Rail signed a formal agreement with ADNOC to help it transfer sulphur from its sources in Shah and Habshan to its point of export at Ruwais.  The company has also signed MoUs with a host of other national companies such as Emirates Steel, Arkan, AlDahra Agricultural Company, Etisalat and du, who are also all looking to use the railway as a solution to their diverse business requirements and transportation needs.

Upon completion, the Etihad Rail network - which will cater to both freight and passengers - will span a total of 1,200 km across the Emirates. It will connect urban and remote communities, facilitate trade, open up communication channels and foster economic development.  The network will also form a vital part of the GCC Railway Network - linking the UAE to Saudi Arabia via Ghweifat in the west and Oman via Al Ain in the east. 

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About DP World
DP World operates more than 60 terminals across six continents(1), with container handling generating around 80% of its revenue. In addition, the company currently has 11 new developments and major expansions underway in 10 countries. 

DP World aims to enhance customers' supply chain efficiency by effectively managing container, bulk and other terminal cargo.  Its dedicated, experienced and professional team of more than 30,000 people serves customers in some of the most dynamic economies in the world. 

The company constantly invests in terminal infrastructure, facilities and people, working closely with customers and business partners to provide quality services today and tomorrow, when and where customers need them.

In taking this customer-centric approach, DP World is building on the established relationships and superior level of service demonstrated at its flagship Jebel Ali facility in Dubai, which has been voted "Best Seaport in the Middle East" for 17 consecutive years.

In 2011, DP World handled nearly 55 million TEU (twenty-foot equivalent container units) across its portfolio from the Americas to Asia. With a pipeline of expansion and development projects in key growth markets, including India, China and the Middle East, capacity is expected to rise to around 103 million TEU by 2020, in line with market demand.

www.dpworld.com

(1) As of March 2012. Includes non-container terminals.

About Etihad Rail
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.

The railway network will be built in phases to link the principal centres of population and industry of the UAE, as well as to form a vital part of the planned GCC railway network linking the six countries of the GCC.

Built to international standards, Etihad Rail's state of the art network will act as a catalyst for economic growth and sustained social development. Once complete, the railway will redefine logistics and transport in the region, providing a modern, safe, efficient, sustainable network that will connect all regions of the UAE, and the UAE to its wider GCC neighbouring countries.

Etihad Rail has recently announced a number of contract awards for Stage one including:

  • The Civil & Track Works contract was awarded to a consortium comprising Italy's Saipem, Tecnimont and UAE-based Dodsal Engineering and Construction

  • The Project Management Consultant (PMC) contract which was awarded to joint venture Parsons-Aecom

  • PCM Strescon Ventures was awarded the contract for the provision of railway sleepers. The Indian-based company will be responsible for the provision of railway sleepers in a purpose-built sleeper manufacturing facility at our rail head

  • Electro-Motive Diesel, from North America, was assigned to deliver seven locomotives custom-built for desert conditions by 2012

  • CSR Corporation Limited China was appointed to supply 240 covered hopper wagons for the movement of granulated sulphur in the Western Region

For more information, please visit the Etihad Rail website at: www.etihadrail.ae

Or please contact:
Sameh Zaki, Hill & Knowlton
Tel: +971 5090 46741
Email:Sameh.Zaki@hkstrategies.com

Dalia Moujaes, Etihad Rail
Tel: +971 2 4999 999
Email: Dalia.Moujaes@etihadrail.ae

For more information about DP World, please contact:
Natasha Bukhari, DP World
Tel: +971 56 682 1699
Email: Natasha.Bukhari@dpworld.com 

© Press Release 2012