Etihad Rail awards the USD 1.2 billion Package D contract

Etihad Rail awarded a joint venture comprising China Railway Construction Corporation (CRCC), and National Projects and Construction (NPC) a AED 4.6 billion (USD 1.25 billion) contract for the construction of a 145-km line linking the ports of Fujairah and Khorfakkan to Dubai border with Sharjah.

The 145-km Package D includes the construction of 15 tunnels through the Hajar Mountains with a total length of 16 km, in addition to the construction of 35 bridges and 32 underpasses.

Through connecting key ports to manufacturing, production and population centers, Package D will connect to quarries for building material in the Northern Emirates, contributing to the improvement of the transport and infrastructure industries in the UAE.

Linking the ports of Fujairah and Khorfakkan to the railway network, will allow the transport of up to 2 million TEU’s per year, which will promote the international trade. In addition, Etihad Rail trains will carry up to 30 million tons of construction material annually to distribution centres in Abu Dhabi and Dubai, cutting the overall cost of transport and reducing on-road truck trips by more than 2,000 journeys per day.

“The awarding of this contract is a highly significant achievement as Etihad Rail follows its path to progressing one of the most important and economically strategic projects in the UAE,” said Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, the Chairman of Etihad Rail.

Previously, Etihad Rail has awarded the contracts for the design and construction of Package A to a JV between China State Construction Engineering Corporation and South Korea’s SK Engineering and Construction, and Packages B (216 km) and C (94 km) to a JV between the China Railway Construction Corporation and the Ghantoot Transport & General Contracting Company.

The contracts are part of the company’s mandate to establish a 1,200 km national railway network, which will also form an integral part of the proposed GCC railway system.

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