Borouge Plc, a leading provider of polyolefin solutions, has achieved a significant milestone by transporting over 700,000 tonnes of polyolefins in its first year of operations with Etihad Rail, the developer of the UAE National Rail Network. This achievement comes after the agreement between Borouge and Etihad Rail was finalized at the end of 2022.
Since September 2023, more than 36,000 Borouge containers have been transported from Al Ruwais Industrial City to Abu Dhabi’s Khalifa Port using the Etihad Rail Freight service. This rail route, with a travel time of just four hours each way, has proven to be much more efficient than the 12-hour travel time typically required by other transport modes. As a result, Borouge has been able to improve cost efficiency and reduce carbon emissions significantly.
The rail service provided by Etihad Rail is more resilient to weather conditions like fog compared to road transport, which supports scalability and operational efficiency for Borouge. Hazeem Sultan Al Suwaidi, CEO of Borouge, emphasized the positive impact of the rail network, stating that it has unlocked new opportunities for the company to export its ‘Made in UAE’ solutions and strengthen local supply chains. By diversifying logistics services, Borouge aims to reduce business risks and operate in a more sustainable and cost-effective manner.
This partnership between Borouge and Etihad Rail aligns with the UAE’s In-Country Value program, with 88% of the value being reinvested into the local economy. This initiative drives economic diversification and growth, building on the long-standing partnership between Etihad Rail and ADNOC. ADNOC was the first company to utilize Etihad Rail for transporting granulated sulphur across the UAE.
Shadi Malak, CEO of Etihad Rail, highlighted the benefits of rail transport for Borouge, emphasizing that it is reliable, cost-effective, and enables faster transitions through ports. This allows businesses to better serve their customers in a sustainable and efficient manner. The partnership between Borouge and Etihad Rail is expected to continue making a positive impact in the future.
The new rail freight terminal at Al Ruwais Industrial City, spanning over one million square meters, offers a comprehensive range of container services to support Borouge’s global operations. There are plans to expand the partnership further, with intentions to transport products to other UAE ports, including Fujairah.
Borouge serves customers in over 80 countries across Asia, the Middle East, and Africa, providing innovative polyolefin solutions to various industries such as infrastructure, energy, and healthcare. This collaboration with Etihad Rail is in line with the UAE’s Net Zero by 2050 initiative, contributing to the reduction of CO2 emissions from road transport by 21% annually by 2050.