Abu Dhabi Ports Company (ADPC) and Etihad Rail have signed a memorandum of understanding (MoU) for the construction of a railway terminal at one of Abu Dhabi’s foremost trans-shipment hubs.

The deal was signed at Khalifa Port on 25 February.

An integrated bulk and container facility will be built at Khalifa port and will connect to the Abu Dhabi port’s adjacent Khalifa Industrial Zone (Kizad).

The infrastructure at Khalifa port is expected to improve the efficiency of trade and to attract more logistics companies.  At the signing of the MoU, ADPC CEO Mohamed Juma al-Shamisi says: “When integrated with ADPC’s infrastructure, the railway network will offer logistics companies an enhanced transportation system combining sea, road and rail.”

Khalifa port saw container throughput in the third quarter of 2013 hit record levels, with 81,000 20-foot equivalent units (TEUs) passing through the facility. The port which began operations in September 2012 has the capacity of 12 million tonnes of cargo and 2.5 million TEUs.

The 1,200 kilometre Etihad rail will connect to the larger GCC railway network, linking the UAE with Bahrain, Kuwait, Oman, Qatar and Saudi Arabia.

Etihad Rail is currently undergoing the first phase of its construction which consists of 264km connecting Ruwais port to gas fields in Shah and Habshan. Phase two will link Ruwais with UAE’s Omani and Saudi Arabian border to the South and East, and Dubai to the north. Phase three will be a 279km link to the northern emirates Fujairah and Ras al-Khaimah.