Etihad Rilway - the master developer and operator of the UAE's national railway - will build the network’s 266km Shah-Habshan-Ruwais section.
The rail line will be built to transport ganulated sulphur for export from ADNOC's oil and gas fields. The Habshan-Ruwais link is scheduled for completion by the end of 2013, and the Shah gas field-Ruwais link by the end 2014, according to the agreement.
Etihad Railway's AED 40bn network will be built in phases to link the principal centres of population and industry of the UAE, as well as to form a vital part of the planned railway network linking Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates.
The agreement was signed by director general of ADNOC Abdullah Nasser Al Suwaidi and Etihad Rail chairman Nasser Ahmed Al Suwaidi.