Borouge Transports 700,000 Tonnes in First Year of Etihad Rail Agreement

Borouge Plc, a prominent petrochemical company specializing in advanced polyolefin solutions, has announced the successful transport of over 700,000 tonnes of polyolefins in its first year of partnership with Etihad Rail, the developer and operator of the UAE National Rail Network.

Since launching in September 2023, more than 36,000 containers of Borouge’s products have been shipped from Al Ruwais Industrial City’s rail freight terminal to Khalifa Port in Abu Dhabi. The service, operated by Etihad Rail Freight, significantly improves efficiency, with the rail journey taking only four hours each way, compared to 12 hours by road, resulting in cost savings and lower carbon emissions.

This rail service was made possible through a partnership agreement signed in late 2022 between Borouge and Etihad Rail, designed to support scalable operations and offer greater resilience against weather disruptions such as fog, unlike traditional road transport.

Hazeem Sultan Al Suwaidi, CEO of Borouge, highlighted the advantages of the rail network: “Transporting our products via rail from Al Ruwais has opened up new opportunities for expanding our ‘Made in UAE’ exports to meet rising global demand while enhancing local supply chains. The partnership enables us to move larger volumes faster, giving us a competitive edge. Diversifying our logistics through optimized rail networks is a key step towards achieving sustainable and cost-effective operations.”

The collaboration supports the UAE’s In-Country Value programme, with 88% of economic benefits channeled back into the local economy, fostering economic diversification. This agreement builds on a longstanding partnership between Etihad Rail and ADNOC, which was the first to utilize Etihad Rail’s services for transporting granulated sulphur across the UAE.

Shadi Malak, CEO of Etihad Rail, emphasized the benefits: “Our rail solutions enable customers like Borouge to enhance their market competitiveness through reliable and cost-effective transport. This aligns with the directives of our leadership, including His Highness Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of Etihad Rail. We are dedicated to improving logistics, allowing faster transitions through ports to deliver products more efficiently and sustainably.”

The new rail freight terminal at Al Ruwais spans over one million square meters, supporting all container activities, such as handling, storage, and maintenance. Borouge and Etihad Rail are now expanding their partnership to include other UAE ports, including the Port of Fujairah.

Serving clients in more than 80 countries across Asia, the Middle East, and Africa, Borouge offers innovative polyolefin solutions for sectors including infrastructure, energy, agriculture, mobility, healthcare, and packaging. This partnership aligns with Etihad Rail Freight’s goal to provide efficient, economical, and sustainable logistics solutions in support of the UAE’s Net Zero by 2050 Strategic Initiative, aiming to cut CO2 emissions from road transport by 21% annually by 2050.

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