Jordan and the United Arab Emirates have announced the initiation of a landmark 2.3 billion dollar infrastructure partnership, signing new, definitive agreements to construct the Aqaba Port Railway.
The project marks the formal beginning of a multi-billion dollar strategic corridor designed to modernise Jordan’s logistics backbone, as well as more comprehensively integrate its heavy industry into global supply chains.
The signing ceremony, held at Qasr Al Watan, was presided over by Prime Minister Jafar Hassan and UAE Vice President and Chairman of the Presidential Court, His Highness Sheikh Mansour bin Zayed Al Nahyan
© Jordan News Agency
The venture is comprised of an equal partnership between a consortium of Jordanian sovereign and industrial entities, including including the Jordan Phosphate Mines Company, Arab Potash Company, the Government Investments Management Company, the Social Security Investment Fund, and the Abu Dhabi-based sovereign investment platform, L’Imad Holding.
Scope of the project will see the construction of a 360-kilometre railway network, which aims to bridge an infrastructure gap by introducing a direct rail link between the primary phosphate mines in Shidiya and the potash production sites in Ghor Al Safi to the industrial terminals at the Port of Aqaba.
Plans include the building of an extensive array of tunnels and bridges, which have been deemed necessary to navigate Jordan’s rugged topography.
The railway itself will serve as the foundational phase of Jordan’s National Railway Network; with the strategic roadmap envisioning a northward extension toward the Madounah area near Amman, moving onward to Syria, the Mediterranean, and Turkey, whilst simultaneously also facilitating links to Saudi Arabia and the broader Gulf Cooperation Council markets.
Once operational, the new rail network is expected to handle a yearly cargo volume of around 16 million tonnes, comprising 13 million tonnes of phosphate and 2.6 million tonnes of potash – representing a significant economic implication for Jordan’s mining sector, as well as a drastic reduction in per-unit transportation costs via the shift from road to rail.
The agreement forms part of a wider 5.5 billion dollar investment framework first established in late 2023 under the instruction of His Majesty King Abdullah II and UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan.
Officials have indicated that financial closure is expected by early 2027, with construction set to span five years.