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Etihad Rail has signed a partnership agreement with Al Ghurair Iron & Steel (AGIS), the UAE’s largest producer of galvanised and cold rolled flat steel, to use the UAE National Rail Network to transport the steel producer’s product across the nation.
With a production capacity of 500,000 MT per annum, AGIS is one of the largest producers of Galvanised Flat Steel in the GCC.
The pact with AGIS is Etihad Rail's third this year, following similar agreements inked with Fujairah-based Western Bainoona Group in early August and Ras Al Khaimah-based Stevin Rock in April.
Etihad Rail will transport steel products from AGIS’s manufacturing facilities through the rail freight terminal in the Industrial City of Abu Dhabi (ICAD) to Khalifa Port in Abu Dhabi and Jebel Ali in Dubai for exports.
AGIS’s products are currently exported to over 40 countries.
Mohammed Al Marzouqi, Executive Director of Rail Relations Sector at Etihad Rail said: "Our rail network drives further cost and time savings, increases operational efficiency in comparison to road-based transport, and enables further market expansion opportunities for our partners."
AGIS CEO Abu Bucker Husain said: "Transporting steel coils by rail is both reliable and environmentally friendly, reducing both time and damage caused by road transport. Additionally, rail transport allows for shorter timeframes for import clearance of hot rolled steel coils. With such improvements in our supply chain, galvanised steel coils made in UAE will find a wider customer base."
AGIS is a joint venture of the UAE-based Saif Al Ghurair Group and Japan's biggest steel producer Nippon Steel Corporation.
(Writing by N Madhura; Editing by Anoop Menon)
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