DHL and Etihad Rail Inter-Modal Logistics Joint Venture Gets Incorporated
In the spirit of its campaign to promote and implement sustainable logistics DHL Global Forwarding has finalised a deal with Etihad Rail to create one of the largest collaborations within the Middle East region's transport industry.
A joint venture company operating across the Etihad Rail Network has been incorporated to further strengthen sustainable freight offerings within the UAE.
Under the terms of the 20-year 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 agreement is expected to significantly reduce pressures on road transport and boost trade, commerce, and logistics in the UAE, whilst also playing a key role in helping the UAE meet its environmental responsibility commitments.
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.
Etihad Rail, for its part, 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 Middle East & Africa, 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."
Gottfried Eymer, CEO of Etihad Rail Freight, accentuated around the partnership: “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.”