UAE rail developer Etihad Rail has signed a Memorandum of Understanding with Al-Dahra Agricultural Company.

Under the MoU, Al-Dahra Agricultural Company will use Etihad’s railway network to transport hay once the rail line connecting Abu Dhabi city with the new port at Khalifa Industrial Zone Abu Dhabi is operational.

Al-Dahra is Etihad Rail’s first customer in the containerised sector. Etihad Rail has already signed agreements with Emirates Steel and Arkan which will use the national railway to transport their raw and finished materials by rail.

An Italian consortium led by Saipem won the $898m civil and tracks work contract for the first phase of the railway in October 2011 (MEED 26:10:11). The contract includes the design, procurement and construction of the railway infrastructure, as well as the testing and commissioning. In addition, the scope also involves carrying out earth works and track site grading, bridge structures, communication systems and the development of the depot at Mirfa.