L&T’s construction unit is set to develop a freight-handling facility in the UAE, the company said in a stock exchange filing.
In a major bidding process, L&T’s construction unit won a $500 million contract along with Power China, awarded by UAE’s Etihad Rail Company.
According to the contract, both L&T design and Power China will design and develop the freight-handling facilities for seven stations in the second phase of the UAE’s Etihad Rail project.
Etihad Rail stretches between the Saudi Arabian border and the emirate of Fujairah and covers an area of around 605 kilometre. Once completed, the project is expected to increase the amount of freight carried from seven million to more than 50 million tonnes a year.
With regard to the mega project, Sheikh Theyab bin Mohamed bin Zayed Al Nahyan, Chairman of the Abu Dhabi Crown Prince’s Court, and Chairman of Etihad Rail told the media, “As 2020, the year of preparing for the next 50 years, begins, we launch the construction works for this pivotal national project that will generate a paradigm shift in the country’s transport sector, consolidating the UAE’s position at both regional and global levels.”
He also highlighted the importance of the project to the economic development of the country as it will provide a safe, reliable and integrated alternative mode of transport.
Last year, China Railway Construction Corporation (CRCC) and National Projects and Construction (NPC) also won contracts from Etihad Rail Company to develop a 145-kilometre stretch of railway line connecting the Fujairah and Khorfakkan ports to the network at the Dubai-Sharjah border.