Abu Dhabi’s Borouge Plc announced that it has transported over 700,000 tons of polyolefins in its first year of operations with Etihad Rail, the developer and operator of the UAE National Rail Network.
Since September 2023, more than 36,000 Borouge containers have been shipped from a rail freight terminal in Al Ruwais Industrial City to Khalifa Port in Abu Dhabi, managed by Etihad Rail Freight, a subsidiary of Etihad Rail.
Time and cost efficiency
The rail journey takes just four hours each way, compared to 12 hours via other transportation methods, allowing Borouge to achieve greater cost efficiency and lower carbon emissions.
Established through an agreement signed in late 2022, this rail service is designed for scalability and is more resilient to weather conditions, such as fog, than road transport.
Strategic benefits for Borouge
Hazeem Sultan Al Suwaidi, CEO of Borouge, noted that utilizing the rail network to transport products from the Al Ruwais Industrial City terminal has created new opportunities, enhancing the company’s focus on exporting ‘Made in UAE’ solutions to meet rising customer demand and strengthening local supply chains. He mentioned that this partnership allows Borouge to move larger volumes at higher speeds by rail, which boosts their competitive edge. He expressed eagerness to diversify their logistics services to manage business risks, highlighting that rail transport leverages more optimized networks.
This collaboration supports the national In-Country Value program, with 88 percent of the value returning to the local economy, promoting economic diversification and growth, he added.
Continued partnership with ADNOC
The agreement follows a long-standing partnership between Etihad Rail and the Abu Dhabi National Company (ADNOC), which was the first to utilize Etihad Rail’s services for transporting granulated sulfur across the UAE and for export.
Commitment to customer solutions
Shadi Malak, CEO of Etihad Rail, emphasized the importance of creating solutions that enable customers to enhance their competitiveness. He affirmed the company’s commitment to developing these services in line with the leadership’s directives, particularly under the guidance of H.H. Sheikh Theyab bin Mohamed bin Zayed Al Nahyan. He further observed that this collaboration has shown benefits for clients like Borouge, noting that rail transport is reliable and cost-effective, and allows for expedited port transitions, facilitating quicker delivery to customers in a sustainable manner. He expressed optimism about the enduring partnership with Borouge.
Comprehensive rail freight terminal
Additionally, the new rail freight terminal in Al Ruwais Industrial City spans over one million square meters, handling the full range of container activities, including loading, unloading, storage, and maintenance, effectively complementing Borouge’s global operations.
Read more: Abu Dhabi’s Borouge reports $308 million Q2 net profit, 33 percent YoY increase
Expanding transportation network
Moreover, Borouge and Etihad Rail are expanding their partnership to transport products to additional UAE ports, including the Port of Fujairah.
Serving clients in over 80 countries across Asia, the Middle East, and Africa, Borouge offers innovative polyolefin solutions for various sectors, including infrastructure, energy, agriculture, mobility, healthcare, and advanced packaging.
Economical and efficient transport
Also, this partnership aligns with Etihad Rail Freight’s commitment to delivering logistics solutions for some of the UAE’s largest companies, providing economical, efficient, and sustainable transportation of goods via the rail network, in support of the UAE’s Net Zero by 2050 Strategic Initiative.
The UAE National Rail Network further aims to reduce CO2 emissions from the country’s road transport sector by 21 percent annually by 2050.
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