In a step to decrease operating cost and enhance transit times, Tarmac Middle East, one of the largest and leading suppliers of aggregates and asphalt in the Middle East, has signed a Memorandum of Understanding (MoU) with Etihad Rail, the developer and operator of the UAE’s national railway.
The MoU will enable Tarmac Middle East to utilize Etihad Rail 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 Etihad Rail’s distribution and export terminals across the UAE. It will also enable the distribution to other GCC counties once Etihad Rail completes its connection to the mainline GCC rail network at the end of 2018.
The agreement will also provide Etihad Rail with additional volumes of bulk commodities transport capability from its export terminals to other locations within the UAE.
Commenting on the MoU, Eng. Faris Saif Al Mazrouei, Acting CEO of Etihad Rail, said: “We are very pleased that we have reached such a mutually beneficial agreement that will enable Tarmac Middle East to enhance its logistic operations, while at the same time increase Etihad Rail’s distribution capacity beyond its export terminals.”
“Etihad Rail will provide its partners with faster, reliable, higher capacity and lower cost transportation services across the UAE and the wider GCC region in the future. We are confident that our sustainable logistics solutions will attract more UAE organizations,” added Al Mazrouei.
It is expected that the volume to products Tarmac Middle East will transport by 2020 via Etihad Rail will reach 6,000,000 tonnes.
Azmat Jafri, UAE Country Manager, Al Futtaim Tarmac Quarry Product Company: “This is a significant milestone for our business and comes at a time when we are expanding rapidly in the UAE.”
“Logistics and transport are some of our biggest operational costs. Utilizing Etihad Rail services will provide us with cost-effective and reliable transport and we look forward to a long-term and successful partnership.”
With an annual turnover of approximately Dhs325 million in 2013, Al Futtaim Tarmac Quarry Product Company was established in 2005 and is headquartered in Dubai. The company is witnessing rapid growth and continuously expanding service offering. Its strengths lie in the production and sales of quarry products.
Tarmac Middle East is a subsidiary of Tarmac Ltd, a UK based company and is one of the world’s leading names for Quarry products and Asphalting solutions with a heritage of more than 100 years.
Once fully operational, Etihad Rail will cater to freight and passengers, spanning approximately 1,200 kilometres across the UAE. The Dhs40 billion rail network will connect urban and peripheral communities, facilitate trade, open up communication channels and foster economic development across all seven emirates. The network will also form a vital part of the GCC railway network, linking the UAE to Saudi Arabia via Ghweifat in the west and to Oman via Al Ain in the east.
Tuesday, July 1- 2014 @ 13:00 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.