National Rail Network Set to Transform Freight Transportation

The national rail network expansion represents one of the most significant infrastructure developments in the region's history, with profound implications for the logistics sector. The fully operational network will fundamentally reshape how goods move across the country.

Network Overview and Capabilities

The Etihad Rail network spans 900 kilometers, connecting the Saudi border to Fujairah. The network links four major ports and seven logistics centres. Powered by a fleet of 38 locomotives and over 1,000 wagons, each locomotive can pull 100 wagons carrying up to 5,000 tonnes at speeds of 120 km/h.

Currently, the network transports approximately 7 million tonnes of sulphur annually from Shah and Habshan gas fields to Ruwais port, with a total of 64 million tonnes moved since 2016. The aggregate line operates at 100% capacity, moving up to 60,000 tonnes daily. Etihad Rail targets 60 million tonnes of cargo annually by 2030.

Economic Impact on Logistics

Rail freight offers 30-40% cost savings compared to long-haul trucking for suitable cargo types. These savings become increasingly significant as fuel costs rise and carbon pricing mechanisms expand.

Transit times for port-to-destination movements are comparable to trucking, with added benefits of schedule reliability unaffected by traffic congestion or driver availability constraints.

Environmental Benefits

Rail transport produces up to 80% less CO2 than equivalent road transport. The network could reduce transport-related CO2 emissions by 21% annually, saving approximately 8.2 million tonnes of CO2 every year. Each train removes up to 300 lorries from UAE roads.

The network is designed for future electrification, which will further reduce the carbon footprint of rail freight operations as renewable energy expands in the national grid. In April 2024, Etihad Rail and Oman Rail announced Hafeet Rail, a joint venture to construct 300 km of new railway connecting Abu Dhabi to Sohar port in Oman.

Integration with Existing Infrastructure

Intermodal terminals at major logistics hubs provide seamless transfer between rail, road, and sea modes. Container handling equipment enables efficient loading and unloading without cargo repacking.

Free zone facilities are developing rail connections that will enable direct access for importers and exporters, reducing handling steps and associated costs.