Etihad Rail: a new way to change a business landmark in the United Arab Emirates
Publication date: 23 November 2016
Abstract
Subject area
The subject areas are strategic management, transportation management and business management.
Study level/applicability
This case is useful for undergraduate and postgraduate level students majoring in strategic management, transportation management and business management.
Case overview
Etihad Rail Company is planning to implement a mega infrastructure project in the United Arab Emirates (UAE). They have included freight rail system as part of the 2030 Abu Dhabi economic vision and the UAE national Charter 2021. The plan is to link the UAE’s main cities via the Gulf Cooperation Council (GCC) border. This ambitious project presents a formidable task for the Etihad Rail Company and the region, as there is no previous railway history of this kind. The project requires coordination of rail standards from East of Ghwefatet and the Northern Emirates cities and will ultimately be combined with the Western Saudi Arabia borders. The transportation system in the region will be improved greatly with the introduction of a cargo and passenger railway system in addition to the current road system and other means of transportation. The Etihad railway network is the first infrastructure project in the UAE, and it will bring economic, strategic, social and environmental changes to the country. This case aims to present an overview of the strategic management dimensions of the Etihad Rail and the processes involved. This case will analyze whether Etihad’s top management team should make a decision to focus only on freight rail or to include passenger transportation as well. Many questions will be addressed in this paper such as the following: What steps should Etihad take to start passenger rail? Will economical, strategic and environmental aspects affect it? And if so, how? The case will focus on the analysis of the different aspects of Etihad Rail by using strategic management tools as guidance for implementation and determining its success factors.
Expected learning outcomes
In this case, the students can learn and understand the purpose of commencing cargo rail projects in the region; discuss the mechanisms which help in promoting sustainability and the business growth of Etihad Rail; and identify the challenges and issues freight rail may face in terms of legal, economic and environmental aspects and identify and alternative solutions.
Supplementary material
Teaching notes are available upon request.
Subject code
CSS 11: Strategy.
Keywords
Acknowledgements
The authors wish to thank six final year MBA students from Abu Dhabi University – Assela Al-Dhahri, Ayesha Al-Ramsi, Balqees Al-Tamimi, Eiman Al-Marzooqi, Ebtisam Al-Khaddiem and Reem Al-Saeedi – who were involved in preparing the draft of the case. The authors would like to acknowledge their contribution in the published case. The case was prepared by the authors as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. The authors may have disguised names, financial and other recognizable information to protect confidentiality.
Citation
Zamberi Ahmad, S. and Ahmad, N. (2016), "Etihad Rail: a new way to change a business landmark in the United Arab Emirates", , Vol. 6 No. 3. https://doi.org/10.1108/EEMCS-01-2015-0008
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited