60 Million Tons of Goods Targeted for Annual Transport by 2030
11 Cities Linked by Rail from Al Ain to Fujairah
Etihad Rail is revolutionizing the logistics sector in the UAE by connecting cities to seaports, streamlining trade flow, and aiming to transport 60 million tons of goods annually by the year 2030, according to a report from Splicha Digital.
While the new railway network in the UAE is primarily viewed as a means to accelerate passenger movement, it is also heralding a significant shift in the freight and supply chain sector on a national level.
The network will link 11 cities, stretching from Al Ain in the west to Fujairah in the east.
Trains are expected to reach speeds of 200 kilometers per hour, with passenger services slated to commence by 2026.
However, as attention focuses on passenger convenience, the project’s benefits for freight transport are equally vital and have already begun to materialize, with freight operations commencing in 2023, enhancing support for various sectors and reducing reliance on road networks.
An Efficient Solution
The freight railway system has proven to be an effective logistical solution. Currently, Etihad Rail transports approximately seven million tons of granulated sulfur annually from the Shah and Habshan fields to the port of Ruwais, providing a direct alternative to thousands of diesel truck trips and delivering high operational efficiency.
By 2030, it is anticipated that the railway will transport up to 60 million tons of goods annually, including building materials, containers, consumer goods, and industrial production inputs.
Each fully loaded train can replace up to 300 trucks on the roads, significantly alleviating traffic congestion and reducing emissions.
In terms of sustainability, trains emit up to 80% less carbon dioxide compared to road transport.
It is expected that the railway network will assist in reducing transportation-related emissions by 21% annually, equivalent to a saving of 8.2 million tons of CO2 each year, aligning with the UAE’s goal of achieving carbon neutrality by 2050.
The network connects major industrial and commercial hubs, including Jebel Ali Port, Khalifa Port, the Kizad industrial area, and Fujairah Port, positioning the UAE as a regional center for trade and logistics services. By providing direct links between ports and inland facilities, Etihad Rail enables more efficient cargo transport, storage, and distribution, facilitating quicker and cleaner trade operations within the country and with neighboring markets like Saudi Arabia and Oman.
A Central Component
Etihad Rail has formed a twenty-year partnership with DHL Global Forwarding to establish a joint venture that integrates the rail network into DHL’s operations across the UAE. This collaboration reflects a shift in how shipping is managed in the region, with trains becoming a vital element in supply chain strategies.
Amadou Diallo, CEO of DHL Global Forwarding for the Middle East and Africa, stated that the UAE’s increased investment focus on logistics infrastructure is inspiring, and they are excited to support operational capacity growth through rail transport. This partnership offers key advantages, including improved cost control, asset utilization efficiency, and more responsive supply chains for businesses operating in the UAE.
In addition to maintaining precise schedules, the rail system reduces maintenance and road damage costs, establishing it as a more sustainable option from both environmental and economic perspectives.
These benefits underpin Etihad Rail’s commitment to becoming a key player in regional and international trade routes.
Memorandums of understanding have also been signed with several logistics service operators, including the COSCO Container Terminal in Abu Dhabi, to enhance integration between port and rail services and create centralized freight hubs for quicker cargo reception, processing, and distribution than traditional truck-based methods.
Economic Returns
The impact of the Etihad Rail project goes beyond mere transportation, as it is expected to contribute approximately 3.5 billion dirhams annually to the UAE’s GDP by 2030, with projected returns on investment estimated to be four times the initial project costs.
Additionally, the project will create more than 9,000 jobs in operations, engineering, logistics, and maintenance, enhancing the nation’s efforts in economic diversification and developing local talent.
On August 4, during the Infrastructure Summit in Abu Dhabi, Etihad Rail signed an agreement with the Abu Dhabi Center for Projects and Infrastructure (ADPIC) to promote collaboration in executing capital projects.
This agreement aims to enhance coordination in project implementation, data sharing, and linking transportation infrastructure to support the emirate’s long-term development vision.
The entire railway network spans over 1,200 kilometers and will connect all emirates in the country. While passenger services are anticipated to facilitate mobility and boost tourism, the impact of the project on supply chains is already becoming evident.