L&T and Power China signed a contract of $509 million to build Freight facilities of Etihad Rail

UAE’s Etihad Rail has awarded the project to construct freight facilities for its railway network stage 2.

The project has been awarded to the joint venture of India based construction Company, Larson and Toubro Limited (L&T) and China based construction Company, Power China International.

The value of Signed agreement is AED 1.87 billion (1 AED = 0.272294 USD).

The agreement ceremony was attended by S.N. Subrahmanyan, Managing Director of L&T, and Mr. Wu Wenhao, President of Power China International.

The contract was signed by Shadi Malak, Etihad Rail CEO, Anupam Kumar from L&T, and Hong Lee from Power China International.

The signing ceremony was done in presence of H.H. Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court, and Chairman of Etihad Rail.

Freight facilities of Etihad Rail stage 2:

Under the terms of the contract, the two companies will be jointly responsible for the surveying, design, construction, equipment installation, testing and pre-commissioning of each facility.

The scope of work involves Design, Engineering, Procurement, Construction & Commissioning of Bulk Material handling systems (Rail loading and unloading systems) with associated civil and structural works, bulk material storage facilities, general cargo and container handling facilities with freight terminal management & control systems.

All the freight stations will include railway siding and track works apart from other infrastructure works such as bridges, buildings, roads & drains, water and electricity utility systems

Etihad Rail is building a series of freight facilities in Ruwais, Industrial City of Abu Dhabi (ICAD), Khalifa Port, Dubai Industrial City (DIC), Jebel Ali Port, Al Ghayl and Siji, Fujairah Port and Khorfakkan Port capable of undertaking all loading and unloading operations, in addition to providing container storage and maintenance.

The planned port facilities will provide a full service to Etihad Rail customers, including direct access to trains on the dock, easing container movements between ships and trains.

Meanwhile, the other facilities centers will serve several sectors, including building materials.

The sector will contribute to transporting more than 30 million tons of various types of raw materials from their sources in the north of the country to the main markets in Abu Dhabi and Dubai for use in the construction industry.

With this award, Etihad Rail has completed the contract-awarding process of Stage Two of the national network which will connect Fujairah and Khorfakkan on the UAE’s east coast to the UAE’s Saudi border at Ghuweifat.

Etihad rail recently awarded the package D works, covers a distance of 145 kilometers. The value f the contract was $1.25 billion.

Read Also: Etihad Rail awards $1.25 billion contract for Package D

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