RailDirect, a joint venture (JV) between Etihad Rail and DHL Global Forwarding, has formed a strategic partnership with consumer goods multinational Unilever. Signed at Global Rail 2024, the agreement will see Unilever utilise RailDirect’s rail freight services to transport goods in the UAE.
According to Tariq Alfalahi, CEO of RailDirect, this switch aims to reduce the carbon footprint of Unilever’s logistics operations in the UAE.
“Our comprehensive decarbonization strategy includes enhancing the efficiency of our road transport, transitioning to renewable energy for our warehouse operations, and piloting electric vehicles and alternative fuels. A crucial component of this strategy is diversifying our transportation modes,” commented Ahmed Kadous, Head of Supply Chain Personal Care MET and Head of Customer Operations Arabia at Unilever.
“By partnering with RailDirect, we can significantly reduce our carbon footprint and advance our sustainability objectives. We are honoured to lead the way in the UAE with this innovative approach to intermodal transportation, underscoring our commitment to a sustainable future,” added Kadous.
Globally, freight accounts for around 8 per cent of greenhouse gas emissions, and with global freight demand set to triple by 2050, emissions are expected to double.
In the UAE, the country’s First Long-Term Strategy (LTS) outlines a plan to shift freight trips to rail transport.
To facilitate this, the LTS also shared plans to increase freight train stock, with 25 units added by 2035, 42 by 2040, 63 by 2045, and 86 by 2050, versus a business-as-usual (non-net zero) scenario.
This is alongside the “progressive substitution” of diesel trains with hydrogen-powered trains, projected to commence in 2025 to work towards decarbonising rail freight.