Today's Edition
BATOOL GHAITH (ABU DHABI)
Jordan’s new Aqaba-Al-Shidiyeh-Maan Railway Project could strengthen the country’s trade, mining and logistics sectors by lowering transport costs, improving supply chains and creating new investment opportunities, Jordanian economists said.
The 403-kilometre railway, the longest in Jordan, is backed by a joint $2.5 billion investment by the UAE and Jordan and is being developed by the Jordan-UAE Railway Company.
His Majesty King Abdullah II bin Al Hussein of the Hashemite Kingdom of Jordan and His Highness Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, witnessed the project’s groundbreaking ceremony in Aqaba on Monday.
The network will link Aqaba with key mining and production sites and the Maan Logistics Zone, allowing bulk cargo and containers to move between ports, production centres and inland logistics facilities.
Beyond Phosphate Movement
Economist Wajdi Makhamreh said the project represents a strategic step in developing Jordan’s transport and logistics infrastructure and goes beyond the movement of phosphate alone.
He said it forms part of a wider national system connecting production centres with the Port of Aqaba and international markets.
“The project’s importance lies in reducing transportation costs and improving supply-chain efficiency,” Makhamreh told Aletihad, adding that this would strengthen the competitiveness of Jordanian mining exports, particularly phosphate and potash.
He said transporting around 13 million tonnes of phosphate annually in the first phase by rail could also reduce pressure on roads and trucks, while lowering road maintenance costs, fuel consumption and transport-related emissions.
Makhamreh added that the project could strengthen Aqaba’s position as a regional transport and logistics hub by connecting mining and production areas with the port.
That could create opportunities to expand cargo handling, storage, logistics services and re-export activities, while attracting new investment in mining, manufacturing, logistics and industrial zones, he noted.
He also highlighted the importance of the Jordanian-Emirati partnership, describing it as a model for attracting regional capital, expertise and investment into Jordanian infrastructure projects.
Integrated Gateway
Economic writer and analyst Salameh Darawi also said the railway would strengthen the connection between Jordan’s mineral resources, production centres and international markets through Aqaba port.
The project’s stated capacity is 16 million tonnes annually, with around 13 million tonnes of phosphate expected to move from Al-Shidiyeh to Aqaba each year during the first phase, he said.
“For trade and logistics, the project would help develop Aqaba into an integrated gateway combining maritime, road and rail transport. Its integration with the Maan dry port project would also facilitate the efficient movement of different goods between Aqaba and Maan,” Darawi told Aletihad.
He added that more efficient and lower-cost rail transport would improve the infrastructure serving phosphate exports and support their competitiveness internationally.
The wider network also connects the phosphate mines in Al-Shidiyeh and potash mines in Ghor Al-Safi with Aqaba’s industrial port, while integration with the Maan dry port would support the movement of different goods between Aqaba and Maan.
The project could also create direct and indirect employment, particularly in southern Jordan and the Jordan Valley, while transferring modern technologies and expertise to Jordanian personnel and building specialised railway capabilities, he added.
Darawi said the equal Jordanian-Emirati investment structure also brings together financing and technical expertise, while sharing risks and returns.
“This structure is based on sharing risks and returns and bringing together investment resources and technical expertise,” he added.
Lower transport costs and more efficient supply chains could improve conditions for mining, logistics and industrial businesses and make Jordan more attractive to investors looking for efficient regional distribution centres, Darawi noted.
In the longer term, both economists said the project could provide a foundation for further development of Jordan’s planned national railway network and strengthen the country’s position in regional trade and logistics.
