Borouge transports over 700,000 tonnes in first year of Etihad Rail partnership

Borouge Plc, a leading provider of polyolefin solutions, has successfully transported more than 700,000 tonnes of polyolefins in the first year of its operations with Etihad Rail, the developer of the UAE National Rail Network. This milestone was reached following the agreement between Borouge and Etihad Rail at the end of 2022.

Since September 2023, over 36,000 Borouge containers have been moved from Al Ruwais Industrial City to Abu Dhabi’s Khalifa Port, with the service operated by Etihad Rail Freight. The rail route, taking just four hours each way, significantly reduces the 12-hour travel time typically required by other transport modes. This shift has allowed Borouge to achieve greater cost efficiency and reduce its carbon emissions.

The rail service, more resilient to weather conditions like fog compared to road transport, supports scalability and operational efficiency. Hazeem Sultan Al Suwaidi, CEO of Borouge, said: “The rail network has unlocked new opportunities, enhancing our ability to export our ‘Made in UAE’ solutions and strengthen local supply chains. We are committed to more sustainable and cost-effective operations as we diversify our logistics services to reduce business risks.”

The partnership supports the UAE’s In-Country Value programme, with 88% of the value being reinvested into the local economy, driving economic diversification and growth. This agreement builds on a long-standing partnership between Etihad Rail and ADNOC, which was the first company to use Etihad Rail to transport granulated sulphur across the UAE.

Shadi Malak, CEO of Etihad Rail, highlighted the benefits for Borouge: “Rail transport is not only reliable and cost-effective but allows for faster transitions through ports, enabling businesses to better serve their customers in a sustainable and efficient way. We look forward to continuing our impactful partnership with Borouge.”

The new rail freight terminal at Al Ruwais Industrial City spans over one million square metres and offers a full range of container services, further supporting Borouge’s global operations. The partnership is set to expand, with plans to transport products to other UAE ports, including Fujairah.

Serving customers in more than 80 countries across Asia, the Middle East, and Africa, Borouge provides innovative polyolefin solutions to industries such as infrastructure, energy, and healthcare. This collaboration aligns with the UAE’s Net Zero by 2050 initiative, contributing to the reduction of CO2 emissions from road transport by 21% annually by 2050.