Tarmac Middle East has signed a memorandum of understanding (MoU) with the UAE’s federal railway authority Etihad Rail for the distribution of the aggregates and asphalt supplies across the emirates.

The agreement will allow Tarmac Middle East to use the Etihad Railway network and operations for the distribution of its products from its local arm, Al-Futtaim Tarmac Quarry Product Company, located at Shawkah in Ras al-Khaimah, to distribution and export terminals across the UAE.

The deal will also enable the distribution of products to other GCC countries once Etihad Rail completes its connection to the mainline GCC rail network at the end of 2018.

It is expected that the volume of products Tarmac Middle East will transport by 2020 using the Etihad Railway will reach 6 million tonnes.

Tarmac Middle East is a Dubai-based subsidiary of the UK’s Tarmac.

Etihad Rail is planning to award the phase two contracts for the railway. Phase two will connect the major ports and cities in the UAE. The 628-kilometre rail line will link Ruwais in Abu Dhabi to Ghweifat on the country’s border with Saudi Arabia.

The first section of phase one, linking gasfields of Habshan to Ruwais port, is due to be completed and operational by the end of 2013. Civil and tracks work for phase 1, worth $898m, is being developed by a consortium led by Italy’s Saipem. The other members of the consortium include Tecnimont, also Italian, and the UAE’s Dodsal Engineering & Construction.

Etihad Rail is also planning to tender phase three, which will cover the track connecting the UAE network to the northern emirates.