$2.5 Billion Aqaba Railway Project to Boost Mineral Transport and Job Creation

Aqaba:A major $2.5 billion railway project is set to connect Aqaba, Shidiya, and Ma'an, aiming to transport up to 16 million tons of phosphate and potash annually and create around 5,000 jobs, as stated by Mohammad Thneibat, Chair of the Jordan-UAE Railway Company.

According to Jordan News Agency, the project, a collaboration between Jordan and the UAE, seeks to enhance the efficiency of mineral transport and link production sites with Aqaba's ports. It is expected to attract both local and foreign investment, support Jordanian exports, and reinforce Aqaba's position as a key maritime and logistics gateway. The development is part of broader plans to upgrade Aqaba's ports and establish the Aqaba-Ma'an dry port.

During a visit to Aqaba, Prime Minister Jafar Hassan emphasized the need for ongoing development of port infrastructure alongside the railway to boost freight handling and transit trade, solidifying Aqaba's role as a regional transport hub.

Thneibat details that the railway will span 403 kilometers, with 360 kilometers dedicated to mineral transport routes and a 43-kilometer connection between Shidiya and Ma'an. It is specifically designed to carry 13 million tons of phosphate and 3 million tons of potash annually. The project is expected to provide significant economic benefits, particularly in Aqaba, Ma'an, Shidiya, and eastern Amman, with the potential for future expansion towards neighboring countries to establish a comprehensive regional transport network.

Initial construction has begun, with a $10 million contract awarded for access roads, tunnels, and bridges. Major construction is slated to start in early 2027, with completion projected in five years.

The ownership of the railway will eventually transfer to the Jordanian government after a 30-year term, with the possibility of extension, ensuring operational sustainability. Aqaba Special Economic Zone Authority Chair Shadi Majali highlighted the project's role in integrating Aqaba Port with mining areas and developing a multimodal freight transport system, which would enhance economic activities related to trade and transport.

Majali also mentioned that the shift to rail transport could improve efficiency, lower logistics costs, reduce road congestion, and enhance road safety. Furthermore, the project will support the competitiveness of Jordanian exports by providing reliable and efficient supply chain options, creating a favorable investment environment and diversifying economic opportunities.