Etihad Rail halts UAE rail network Stage 2 bidding process

Published January 27th, 2016 - 06:28 GMT

Etihad Rail, the developer and operator of the UAE's national rail network, today confirmed that it has suspended the tendering process for Stage Two of the project.

It said in a statement that all bidders have been informed in writing of the decision.

The company has suspended the current Stage Two tender process whilst it reviews the most appropriate options for the timing and delivery of this phase of the project. This decision will have no impact on Stage One operations, it said in a statement.

Stage Two involves the construction of a rail network in the Abu Dhabi emirate that will connect to the Saudi border at Ghweifat and the Omani border at Al Ain, and also vital areas such as Mussaffah, Khalifa Port and Jebel Ali Port in Dubai.

Etihad Rail commenced commercial operations on Stage One of the rail network, which links Shah and Habshan to the port of Ruwais, after official safety authorisations were granted by the Federal Transport Authority in December 2015.

To date, Etihad Rail has transported four million tonnes of Sulphur from Shah and Habshan to the port of Ruwais for the Abu Dhabi National Oil Company (Adnoc). Once Stage One reaches full commercial capacity, Etihad Rail will transport more than seven million tonnes of Sulphur every year.

Nasser Alsowaidi, chairman of Etihad Rail, said:  “Etihad Rail is one of the biggest and most complex infrastructure projects ever undertaken in the UAE. As we enter 2016, we have been working closely with our partners and stakeholders to assess our strategic priorities for the year. As a result, a decision has been taken to suspend the tendering process for Stage Two whilst we review the most appropriate timing for this investment.”

The UAE government has begun to slow some spending and review construction plans in some areas as low oil prices hit state finances


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