Germany’s national rail operator Deutsche Bahn (DB) has signed a memorandum of understanding to work on the planning, construction and operation of rail projects in the UAE with the local Al-Masaood Group, Reuters reports.

The deal brings DB a step closer to securing multi-billion dollar deals to work on major rail projects in the UAE, including the federal railway network, the rail firm tells MEED.

“Germany will do everything in its power to support the UAE in setting up an ultra-modern, high-capacity rail infrastructure,” says Peter Ramsauer, Germany’s federal minister of transport.

Rail projects currently planned in the UAE include metro and tram projects in Abu Dhabi, a metro in Dubai, and the federation-wide Union Railway.

Union Railway revealed its plans for the $11bn federal railway network on 24 March. The first phase of the project is scheduled for completion by 2013.

The first phase of the railway involves the construction of a 264-kilometre line connecting the Shah gas field in the south of the emirate with oil and gas processing and distribution facilities at the port of Ruwais in the north. The route will be for freight transport initially although Union Railway is also planning passenger services (MEED 24:3:10).