Etihad Rail, the developer and operator of the UAE National Rail Network, has signed a Memorandum of Understanding (MoU) with COSCO SHIPPING Ports Abu Dhabi Container Freight Station (CSP AD CFS), the largest Container Freight Station in the region and subsidiary of COSCO SHIPPING Ports Limited (CSP) a leading ports operator in the world. This strategic partnership aims to bolster logistics and connectivity within the UAE, advancing CSP AD CFS’s supply chain efficiency and extending its services across the UAE and wider GCC region.
Under the terms of the MoU, CSP AD CFS will utilize the UAE National Railway Network to facilitate seamless transportation of its goods between Khalifa Port and various key logistics hubs and industrial zones throughout the UAE. By leveraging Etihad Rail’s network and strategically located freight terminals, CSP AD CFS will benefit from more productive use of time and resources and more efficient asset management.
Through this partnership, Etihad Rail will provide a multimodal transportation solution that will support CSP AD CFS’s sustainability initiatives, reducing its reliance on road transport, and thus aligning with both parties’ commitment to driving the UAE’s Net Zero by 2050 Strategic Initiative. The UAE National Rail Network aims to reduce CO2 emissions in the country’s road transport sector by 21% annually by 2050, which is equivalent to removing 8.2 million tonnes of CO2 annually.
Commenting on the partnership, Gunther J. Ferk, CEO of Etihad Rail Freight said: “The integration of rail into CSP AD CFS’s operations at Khalifa Port aligns with our commitment to create safe and reliable transport solutions for our customers. Moreover, this collaboration will connect one of the country’s primary ports with catchment areas, enabling goods to move seamlessly within the regional supply chain. As a result, CSP AD CFS will benefit from Etihad Rail’s end-to-end services that combine sustainability, speed to market, and are, most importantly, competitive. These enhanced logistics capabilities will attract more businesses to the region, further establishing the UAE as a global trade hub and contributing to the diversification of the national economy.”
Yu Bin, General Manager of CSP Abu Dhabi CFS at COSCO SHIPPING Ports, said: “Signing of this MoU with Etihad Rail is marking a significant milestone in enhancing our logistics and transportation capabilities. This partnership aligns with our commitment to providing seamless, efficient, and sustainable transport solutions to our clients. By integrating rail transport into our service offerings, we aim to improve the connectivity between our facilities and key markets, reduce transit times, and lower our carbon footprint. This collaboration is a testament to our dedication to innovation and operational excellence, and we look forward to the positive impact it will have on the logistics landscape in the region.”
Furthermore, Etihad Rail’s freight rail terminals will be utilised as storage and distribution centres for CSP AD CFS’s goods, streamlining their logistics operations via strategic inland locations for the consolidation and deconsolidation of cargo. By establishing a new rail corridor, the partnership will also enable CSP AD CFS to expand its services in the UAE, bringing them closer to import and export points, and thus further enhancing their market presence.
CSP Abu Dhabi Terminal at Khalifa Port is a sister company of CSP AD CFS, which commenced operations in December 2018. This terminal is a major part of CSP’s expansion into the Middle East and is designed to handle a significant volume of container traffic, with an annual handling capacity of 2.5 million TEUs (twenty-foot equivalent units) and plans to increase this capacity to 3.5 million TEUs.
