German Rail in joint venture with UAE Etihad Rail

Wednesday 26, March 2014


German Rail in joint venture with UAE Etihad Rail


Etihad Rail, the United Arab Emirates' railway developer has signed a joint venture deal with a unit of Germany's Deutsche Bahn to operate and maintain the Gulf country's planned USD11 billion rail network.


Gulf Arab oil exporters are spending hundreds of billions of dollars on projects ranging from power to transport as they look to diversify their heavily hydrocarbon-reliant economies and boost regional trade.


Etihad Rail DB will manage operations for the first stage of the railway, transporting granulated sulphur on a 264-km or 164-mile route from Shah and Habshan to the port of Ruwais.


It will also act as consultant for future stages of the project.


Deutsche Bahn is Europe's largest railway firm, operating passenger and freight services on a 33,500-km rail network.


Upon completion, the UAE's national railway network will span about 1,200 km as part of the planned Gulf railway network.


In February, state-backed Etihad Rail said it had bank loans of $1.28 billion to build the first phase of the project.



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