There are numerous benefits brought about by Etihad Rail. Cargo, whether intermodal, bulk or general freight, can often be carried on rail at rates which are far more competitive than other means of transport.
The direct economic benefits delivered by the Etihad Rail network include these freight cost savings along with other economic considerations. The benefits will support businesses, commuters and other travelers throughout the region, while also contributing to tourism and the wider UAE economy. Tourism benefits include an increase in the average length of stay, making travel within the region faster, safer and more convenient for tourists, and granting them faster accessibility to tourist landmarks, generating an estimated AED23Bn over the next 40 years.
Analysis shows that the economic benefits that Etihad Rail is bringing will be shared across the Emirates. It will support exports as well as increased inward investment. It will also provide employment opportunities and increase incomes for business and property owners, as well as their employees.
The enhanced connectivity that Etihad Rail will deliver will effectively bring businesses closer together, facilitating more efficient trade and extending geographic markets. The rail network will ultimately provide services for both freight and passengers,with the associated social benefits, including extra convenience, lower cost transportation, faster journeys than highway alternatives and reduced levels of highway traffic.
By offering a time and cost advantage over trucks when compared with the “no-rail” scenario option for freight transportation, Etihad Rail will attract container and bulk freight demand that is currently transported by trucks. The cost savings made by businesses that transfer their freight via rail will enable them to be more commercially successful and therefore further contribute to economic growth. The rail network will also encourage businesses to make better use of their valuable time and resources, enabling them to redirect their assets and grow with Etihad Rail.
In addition, rail connectivity between UAE ports will expand their hinterland and dynamically increase the capture of new value-added freight carriage and services for ports across the UAE.