Sheikh Khaled and King Abdullah launch $2.3 billion Jordan rail link

Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of the Abu Dhabi Executive Council, joined King Abdullah II of Jordan for the groundbreaking ceremony of the Aqaba-Al-Shidiya-Maan Railway Project on Monday. The ambitious $2.3 billion transport network will span 403 kilometers, connecting the Port of Aqaba to mining centers in Al Shidiya and Ghor Al Safi in Jordan.

The investment aims to bolster the mining sector by providing a direct link between mines and ports, thus decreasing transportation costs and enhancing supply efficiency.

The UAE, represented by Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister, and Chairman of the Presidential Court, signed the project in July. The project's significance lies in its capacity to connect production centers with the ports of Aqaba and regional and global markets, thus improving transportation and logistics efficiency, bolstering export competitiveness, and generating long-term economic value for Jordan.

The Jordanian-Emirati Railways Company is spearheading the project, with a total investment of $2.3 billion, divided equally between the Jordanian government entities - Jordan Phosphate Mining Company, Jordan Arab Potash Company, Musahamat, and the Social Security Fund, and the UAE sovereign investment company, L imad Holding. Construction is projected to take five years, following which the line will replace the congested road from Ghor Al Safi to Aqaba, as well as an outdated rail route that transported phosphate exports from Al Shidiya to the port.

The new railway line, designed to carry approximately 16 million tonnes of phosphate and potash annually, is poised to slash transportation costs by around $40 million each year, further enhancing the competitiveness of Jordan's mining sector. This project is expected to create about 5,000 jobs in southern Jordan and support economic development across the country's southern governorates.