Under the terms of the agreement, DHL Global Forwarding will adopt rail as one of its primary modes of transportation to distribute goods throughout the UAE, via the railway network which links key industrial hubs.
The newly formed joint venture company will further strengthen the sustainable freight offering within the UAE, operating across the Etihad Rail Network. The agreement is expected to significantly reduce pressures on road transport and boost trade, commerce, and logistics in the UAE, whilst playing a key role in helping the UAE meet its environmental responsibility commitments.
The ambitious 20-year partnership between DHL and Etihad Rail will deliver significant benefits for businesses, optimizing use of time and resources, reducing costs and more efficient asset management. Furthermore, the partnership will strengthen end-to-end logistics and supply chain services for customers in the region.
DHL’s robust rail freight products offer secure and reliable transportation and is also an environmentally friendly alternative to cargo transportation via road or air freight.
With rail considered to be one of the most sustainable modes of transport, Etihad Rail is committed to contributing to the UAE’s Net Zero by 2050 strategic initiative, whereby the UAE National Rail Network will contribute to reducing carbon emissions in the road transport sector by 21% by 2050, and each train trip will remove up to 300 trucks off the road.
Amadou Diallo, CEO of Middle East & Africa at DHL Global Forwarding, said, “The UAE’s increasing focus on infrastructural investment in the logistics sector, and DHL Global Forwarding is excited to be part of this journey to support growing capacity requirements through rail freight. Our decades of expertise in rail and multimodal transport solutions, providing fast, secure, and cost-effective connections, make us the right partner to support the development of the railway industry in the UAE.”
Gottfried Eymer, CEO of Etihad Rail Freight, added, “We welcome DHL Global Forwarding as a key partner for Etihad Rail as we embark on fulfilling our ambitious targets. With freight operations operational since February, Etihad Rail is pleased to introduce further sustainable transport models within the UAE and continue to stimulate economic growth and sustained social development in the region.”
The agreement between Etihad Rail and DHL Global Forwarding is one of the largest collaborations for the transport industry and showcases the respective organization’s commitment to the UAE’s sustainability agenda.