Etihad Rail and Al Dahra collaborate at COP28

His highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail, witnessed a Memorandum of Understanding (MoU) between Etihad Rail, the developer and operator of the UAE National Rail Network, and Al Dahra Holding Company, one of the most prominent Emirati companies working in the agricultural field, to provide sustainable rail transport services for agricultural products.

The MoU was signed by His Excellency Shadi Malak, CEO of Etihad Rail, and Arnoud van den Berg, Group CEO of Al Dahra Holding, on the sidelines of COP28.

His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan said: “This agreement stands as a testament to the close collaboration between national entities, such as Etihad Rail and Al Dahra Holding, to drive sustainable economic growth. Through the UAE National Railway Network, Etihad Rail plays a pivotal role in supporting companies’ transition to adopt sustainable modes of transport, enabling them to rely on Etihad Rail’s integrated and flexible freight services and innovative logistics solutions to meet their business goals more effectively, reliably, and sustainably.”

The agreement aims to strengthen collaborative efforts to bolster the development of the railway sector in the UAE and region. Furthermore, it aims to instill a culture of sustainability within the transport and logistics sector, particularly through rail freight transportation. His Highness underscored Etihad Rail’s commitment to providing sustainable shipping solutions to its customers, in line with the vision of the wise leadership, who laid the foundation for sustainability by launching national strategies and agendas, steering the nation toward a more sustainable centennial. This commitment is further reinforced in hosting the world’s largest climate change dialogue COP28, dedicating 2023 as the Year of Sustainability under the slogan “Today for Tomorrow”, in addition to other impactful initiatives.

Under the terms of the MoU, Al Dahra Holding will integrate rail into its supply chain activities, aligning with its ongoing efforts to shift to more sustainable modes of transporting its goods within the country. By leveraging Etihad Rail’s freight terminals and logistics hubs, strategically positioned to connect major commercial hubs and industrial zones across the country, Al Dahra will easily and conveniently access markets.

For his part, Arnoud van den Berg , CEO of Al Dahra said, “Our primary objective at Al Dahra is to sustainably meet the nutritional needs of the developing world. The UAE National Railway Network enables us to advance our efforts to transition our supply chain activities to low-carbon alternatives. We are very much looking forward to exploring how we can collaborate in the future to boost Al Dahra’s operational efficiency.”

As both parties realise the importance of sustainable business practices, they aspire to maximise energy efficiency, reduce resource consumption in supply chains, and reduce the carbon footprint associated with freight operations by relying on rail, explore innovative solutions and best practices that further enhance the sustainability of freight transportation, in addition to raising awareness about the environmental benefits associated with rail, it is worth noting that each train trip removes up to 300 trucks off the roads, contributing to road safety and savings in maintenance costs. Furthermore, the UAE National Railway Network will reduce CO2 emissions in the UAE road transport sector by 21%, by 2050, aligning with the UAE Net Zero 2050 Strategy.

Al Dahra is the number one importer in the UAE, and the largest import container customer at Khalifa Port, a key stop in the national railway network. As a result, the agreement showcases the significance of the rail network as a crucial link in the transport and logistics chain in the UAE, building long-term commercial partnerships to achieve sustainable economic growth.