The rail link between the gas fields of Habshan to the port of Ruwais in the UAE is nearing completion, according to Graeme Overall, business development director at Etihad Rail.

The rail line forms part of phase one of the Etihad Rail network and is expected to be operational by the end of the year. The other part of the rail line, which connects Shah to Habshan, is set to be completed in 2014.

“We are now well on schedule to see Etihad Rail trains running by the end of year in the Western region. [It is] an historic moment that paves the way for the formation of the UAE’s national mixed traffic railway network,” Overall said at a conference in Dubai.

His comments follow news that the rail project has secured AED4.7bn ($1.3bn) from a mixture of international and regional banks to fund the first phase of the project.

Construction of the phase 1 track is well under way, with tracks laid, 13 major bridges nearing completion and 90 per cent of 55,000 tonnes of steel rail has been delivered to site. Much of the rolling stock has been delivered or expected to be delivered within the first quarter of this year. The first shipment of locomotives from the US firm Electro Motive Diesel is expected to be delivered by the end of March. The delivery is seen as another “significant step forward” for the project, according to Graeme Overall, business development at Etihad Rail.

This follows the delivery of the first batch of wagons from China South Locomotive & Rolling Stock Corporation at the end of 2012. The wagons are specifically designed to carry granulated sulphur from the gas fields to the port. A total of 126 wagons are already on site, with the remaining expected to be delivered by the end of February.

Etihad Rail is now working on phase 2 and 3 of the rail project. Tenders for five packages, including four design and build contracts and one systems contract, are currently under assessment. Phase 2 will link up the major ports in the UAE with key industrial areas. Early work on phase 3 has also begun. This section will link up the Northern Emirates, serving industrial areas and quarries in the Hajar mountains.

Overall confirmed that the majority of the alignment has now been designed.