Etihad Rail and CSP Abu Dhabi partner to revolutionise UAE logistics

A strategic MoU aims to enhance supply chain efficiency and connectivity across the UAE

Etihad Rail, the UAE National Rail Network developer and operator, has signed a Memorandum of Understanding (MoU) with COSCO Shipping Ports (CSP) Abu Dhabi Container Freight Station. CSP aims to strengthen logistics and connectivity within the UAE,enhance supply chain efficiency, and extend services across the UAE and the wider GCC region.

Under the MoU, CSP will leverage the UAE National Railway Network to facilitate the transportation of goods between Khalifa Port and key logistics hubs and industrial zones throughout the UAE.

The partnership is set to optimise time and resources and improve asset management by utilising Etihad Rail’s strategically located freight terminals.

Sustainable multimodal transportation

Etihad Rail will provide a multimodal transportation solution, reducing CSP’s reliance on road transport and supporting its sustainability goals.

This aligns with the UAE’s Net Zero by 2050 Strategic Initiative, aiming to cut CO2 emissions in the road transport sector by 21% annually by 2050, equivalent to removing 8.2 million tonnes of CO2 each year.

Gunther J. Ferk, CEO of Etihad Rail Freight, stated, “Integrating rail into CSP AD CFS’s operations at Khalifa Port aligns with our commitment to creating safe and reliable transport solutions.”

“This collaboration connects one of the UAE’s primary ports with critical catchment areas, enabling seamless movement of goods within the regional supply chain.”

Enhanced logistics operations

Etihad Rail’s freight rail terminals will serve as storage and distribution centres for CSP’s goods, streamlining operations via strategic inland locations for cargo consolidation and deconsolidation.

The new rail corridor will enable CSP to expand its services in the UAE, enhancing market presence and bringing services closer to import and export points.

Yu Bin, General Manager of CSP Abu Dhabi CFS at COSCO Shipping Ports, commented, “Signing this MoU with Etihad Rail marks a significant milestone in enhancing our logistics and transportation capabilities.”

“Integrating rail transport into our services will improve connectivity, reduce transit times, and lower our carbon footprint, reflecting our commitment to innovation and operational excellence.”

CSP Abu Dhabi Terminal at Khalifa Port, a CSP AD CFS sister company, began operations in December 2018. It plays a crucial role in CSP’s expansion into the Middle East, handling a significant volume of container traffic. With an annual handling capacity of 2.5 million TEUs (twenty-foot equivalent units), the terminal plans to increase this capacity to 3.5 million TEUs.

Source: logisticsmiddleeast

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