Abu Dhabi is entering a new era of super-connectedness
Advancements at Khalifa Port and an expansive new rail network are driving a more integrated, efficient, and sustainable future for the emirate’s logistics sector
Abu Dhabi’s Khalifa Port is already a major shipping and freight hub. Five international airports are within a 30-minute drive. Cargo ships connect from here to 1,000 ports worldwide. Three multi-lane expressways carry trucks all over the UAE and on to the seven countries of the Gulf Cooperation Council (GCC).
But when the port became the first to connect to the new Etihad Rail project, it became a flagship for Abu Dhabi’s ambitious efforts to build an entirely integrated logistics infrastructure. Alongside the railway, the port, which is undergoing major technological upgrades, forms an integral part of the newly minted KEZAD Group - a consolidation of the former KIZAD industrial zone and ZonesCorp to create a hub that provides comprehensive trade, logistics, and industrial facilities – everything from prebuilt factories to custom warehousing and tax advisory.
Once complete, it all adds up to a seamless industrial and trade infrastructure that will cement Abu Dhabi’s position as a pivotal global trade, logistics, and distribution gateway.
Etihad Rail
When completed, Etihad Rail will connect the entire UAE by rail for the first time. 1,200km of track will run all the way from the Saudi border to Fujairah on the Indian Ocean coast. It is expected to carry 36.5 million passengers per year, and 60 million tons of freight.
“Etihad Rail will offer the most sustainable alternative for inland transportation of goods,” says Neil Horrocks, Acting Freight Operator CEO, Etihad Rail.
Land freight in the UAE is currently hauled by truck, each one carrying “one or two containers,” says Horrocks, “whereas trains can accommodate up to 276 in one go.”
This volume is expected to save freight carriers up to 10% on haulage. And the train is estimated to emit 70-80% less carbon than transporting the equivalent load by truck. Etihad Rail is a key strand of the UAE’s strategy to achieve net-zero emissions by 2050.
As part of that strategy, Etihad Rail will also form a crucial part of the UAE’s passenger network. Abu Dhabi to Dubai will only take 50 minutes, compared to 80 minutes by car, or 130 by bus. Intercity links like these will also connect to intracity light rail, with smart solutions for passengers to book ‘door-to-door’ travel, including transfers to and from stations.
A similarly unified freight portal is planned for booking logistics, port, and customs services. When Etihad Rail completes, it will also connect to the GCC Railway Project. The result will be an integrated freight and passenger railway spanning the entire GCC.
Etihad Rail Freight Operator Acting CEO
Etihad Rail Freight Operator Acting CEO
Connecting the world
“We are working to enable the easy transfer of goods from sea to train, and from train to truck, to strengthen the UAE’s global status as a pivotal logistics and trading hub,” says Horrocks.
Abu Dhabi has long been a natural global trade gateway. Favourably positioned at the intersection of East and West, the UAE is only a four-hour flight from 80% of the world’s population – its natural geographical location has supported Abu Dhabi’s connectivity and trade potential.
Enabling those connections is the Abu Dhabi Ports Group (ADPG), responsible for all ten of Abu Dhabi ports, and their surrounding infrastructure.
ADPG is investing heavily in making these connections to the world as seamless as possible. “By leveraging the power of Industry 4.0 technologies, blockchain, process automation, AI, and other cutting-edge technologies, we will continue to devise solutions that streamline trade and industry,” says Captain Mohamed Juma Al Shamisi, Managing Director & Group CEO of ADPG.
AD Ports Group Managing Director & Group CEO
AD Ports Group Managing Director & Group CEO
Last year the company introduced the Middle East’s first autonomous trucking system at Khalifa Port, making it the first semi-automated container port in the GCC. Six driverless electric trucks, each capable of carrying 80 tons, work tirelessly to load and unload freight from sea vessels.
The port is also home to the largest cold chain and ultra-cold storage in the region. An advanced energy management system designed to reduce consumption of fossil fuels.
Freight carriers can also book all their logistics and customs services across Abu Dhabi through the single-window Advanced Trade and Logistics Platform (ATLP).
This consolidation is characteristic of ADPG’s approach, which extends beyond pure logistics. The Integration of a new, smart manufacturing framework was a strategic decision to increase efficiency, reduce waste and help drive the transition to a circular economy.
Interlocking clusters
“ADPG approaches trade and logistics from every angle,” says Al Shamisi. “Our portfolio is uniquely integrated to provide customers with a fully holistic one-stop-shop.” Nowhere is this more apparent than within the KEZAD Group.
The KEZAD Group is a consolidation of the former KIZAD industrial zone and surrounding Specialized Economic Zones. It comprises 12 economic zones and 100 sq. km. designated as zero-tax free zones. Currently home to 1,750 businesses across 17 sectors, the area provides comprehensive trade, logistics, and industrial facilities – everything from prebuilt factories to custom warehousing and tax advisory.
Within this area, ADPG is cultivating interlocking business clusters, to nurture mutually beneficial collaboration. Such an approach already birthed the HOPE Consortium, which drew on advanced cold chain storage – including the UAE’s largest freezer farm – air freight facilities, and a blockchain-based platform to deliver millions of Covid-19 vaccines across the world.
KEZAD Group will soon host the region’s largest auto hub, due for completion in 2024. 430,000 vehicles per year are expected to flow through the 3.3 sq. km. zone, which will provide everything required for auto trading. It will be joined by a giant food storage and logistics hub, designed to boost food security both in the region and around the world. Smaller hubs are being developed for metals, and pulp and paper products.
Unlocking global trade
With such substantial capacity, effi ciency, and sustainability improvements, Abu Dhabi’s logistics sector stands to substantially increase the trade potential of the region and provides domestic and international businesses alike with a pivotal gateway between East and West – maximising its location and employing advanced technology to support global trade.
AD Ports Group Managing Director & Group CEO
AD Ports Group Managing Director & Group CEO
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