Shares of RITES, a transport consultancy PSU, have surged nearly 10% after the company announced a pact with Etihad Rail on October 9 to explore railway-related infrastructure services in the UAE and wider Gulf region.
Etihad Rail has developed and operates the UAE National Rail Network, and RITES is looking at the partnership as an expansion of its global footprint. "It represents a significant advancement in our strategic initiative of ‘RITES Videsh’, aimed at expanding our global services," said Rahul Mithal, CMD of RITES.
Through the partnership, RITES aims to leverage its strengths in project management for railway projects, and take up repair of rolling stock, along with operation and maintenance of railway infrastructure. The UAE is looking to turn its railway network more efficient and modernise services across the region. RITES called this MoU as a 'foundation' to enhanced connectivity in the UAE.
Etihad Rail's CEO Shadi Malak said the pact will "transform the transportation landscape in the UAE." Malak said the arrangement will explore innovative solutions for freight as well as future passenger services in the UAE.
A key aspect of the tie up will be the analysis of capacity of UAE's rail corridors in the country as well as nearby geographies. UAE will leverage RITES expertise to improve efficiency, and enhancing trade routes, the statement said.
The MoU will also allow both parties to explore advanced IT solutions for train operations and passenger management, as well as for maintenance.
UAE, a crucial trading partner for India, will also explore possibilities of knowledge transfer, expertise sharing, as well as development of workforce through the tie up with RITES. Employee exchange initiatives are part of the tie up, said the statement by RITES.
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