Etihad Rail, the developer and operator of the UAE national railway, is seeking a financial advisor to raise $2 billion to $3 billion in loans to build the second stage of the Dh40-billion ($11 billion) national rail network, said a report.

The funds will be used to lay more than 600 km of track from Ghuweifat on the Saudi border to Fujairah on the UAE’s east coast, reported Bloomberg, citing sources having knowledge of the plan.

The UAE’s Ministry of Finance and Abu Dhabi’s Department of Finance are also helping finance the second stage of the project, it stated.

On completion, the Etihad Rail network will provide both freight and passenger services that will eventually link the Gulf states. The first stage, spanning 264 km, was completed in 2015 and is now being used to transport sulphur from the southwest of Abu Dhabi to the export point at Ruwais.

 Last month, state news agency Wam had reported that Etihad Rail had given the go-ahead for the civil and track works of Packages B and C worth Dh4.4 billion ($1.2 billion) for Stage Two of the stretch connecting Abu Dhabi and Dubai.

Package B runs for 216 km, and Package C runs for 94 km, and the two packages are part of the 605-km line from Ghuweifat to the Port of Fujairah on the eastern coast.