DHL and Etihad Rail enter strategic agreement

DHL Global Forwarding, the air and ocean freight specialist of Deutsche Post DHL Group, and Etihad Rail, the developer and operator of the UAE National Rail Network, have announced a groundbreaking strategic partnership.

The agreement, signed at the Middle East Rail event held at the Abu Dhabi National Exhibition Center (ADNEC), paves the way for the establishment of a joint venture company that will revolutionize logistics operations within the UAE. 

The partnership will enable DHL Global Forwarding to leverage Etihad Rail’s extensive railway network for its main operations in the UAE. As per the agreement, rail transportation will become one of the primary modes for DHL to distribute goods across the country, connecting key industrial hubs efficiently. 

This collaboration is set to enhance the UAE’s sustainable freight offerings and is expected to alleviate the strain on road transport, fostering increased trade, commerce, and logistics capabilities within the country. Moreover, it aligns with the UAE’s commitment to fulfilling its environmental responsibilities. 

The 20-year partnership between DHL and Etihad Rail aims to deliver substantial benefits for businesses, optimizing time and resources, reducing costs, and facilitating efficient asset management. This strategic alliance will also bolster end-to-end logistics and supply chain services, further enhancing customer experiences in the region.  

DHL’s reliable and secure rail freight products will serve as an environmentally friendly alternative to road or air freight. Etihad Rail, recognizing rail transport as one of the most sustainable modes, actively contributes to the UAE’s Net Zero by 2050 strategic initiative.  

The UAE National Rail Network plays a vital role in reducing carbon emissions in the road transport sector by 21% by 2050. Additionally, each train trip will eliminate the need for up to 300 trucks on the road, resulting in a significant reduction in congestion and pollution. 

“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,” says DHL Global Forwarding CEO Middle East & Africa Amadou Diallo. 

“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.” 

Etihad Rail Freight CEO Gottfried Eymer says “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.