UAE, Jordan Launch $2.5bn Railway Project to Boost Trade and Logistics

The UAE and Jordan have launched a major $2.5 billion railway project to change the way goods are transported and enhance the transport infrastructure of trading and logistics in the kingdom.

The partnership was underscored with the participation of Jordan’s King Abdullah II, and UAE’s Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al-Nahyan at the groundbreaking ceremony of the Aqaba – Al-Shidiyeh – Maan Railway Project.

The 403-kilometre rail will link the port of Aqaba to the key phosphate and potash production centres in Al-Shidiyeh and Maan Logistics Zone. The network will pave the way for more efficient transportation of Jordanian products to international markets.

The railway is mainly a freight route, with an estimated capacity of 16 million tonnes of phosphate and potash per year, easing the strain on road transport and boosting export competitiveness.

The project is also expected to create some 5,000 jobs during its construction and operational life, thus giving new opportunities for employment and business in the south of Jordan.

The programme also boosts the economic cooperation between Abu Dhabi and Amman, and contributes to better sustainable transport of goods. The logistics network is expected to also benefit from the expertise they will bring from operating the rail services for Etihad.

The railway’s overall objective is to help develop Aqaba as a more competitive trade gateway in the region, as well as enhancing industrial exports for Jordan and connecting more closely the region’s regional value chains.