The Ministry of Investment of the UAE and the Ministry of Investment of the Hashemite Kingdom of Jordan signed four agreements for the construction of a USD 2.3 billion rail system in Jordan that will connect the port of Aqaba with the mining regions of Al-Shidiya and Ghor es-Safi.
The project will take five years to commence transport operations which are expected to be launched in 2030. Detailed studies on railway tracks and the handling requirement for potash and phosphate will be completed by the end of 2025, with the goal of issuing bids for construction work in early 2026.
As part of the cooperation between the two ministries, Etihad Rail and Jordanian Ministry of Transport signed an agreement to facilitate the implementation of railway projects in Jordan, with the aim of building, developing, and operating a 360 km rail system in Jordan linking phosphate and potash mines to the Port of Aqaba. Furthermore, the company signed two additional MoUs with Jordan Phosphate Mines Company and Arab Potash Company to transport 16 million tonnes of phosphate and potash annually from mining sites to the Port of Aqaba via the Jordanian railway network. With the launch of this project, Jordan will be able to export 16 million tonnes of phosphate and potash goods, of which 3 million tonnes are potash products and 13 million tonnes of phosphate, increasing its logistics and export capacity.
“Through enhancing capabilities and sharing technical expertise, we aim to establish new economic and investment connections that support infrastructure development and foster promising opportunities, all within the framework of our vision to achieve comprehensive and sustainable economic growth,” the UAE Minister of Investment, Mohamed Hassan Alsuwaidi, said.
Under the investment agreement between the two ministries, the railway infrastructure will be developed, including the manufacturing and supply of a fleet of trains designed to the highest international standards. The project will also include the construction of loading and unloading terminals for various mineral products in Aqaba, Ghor Al Safi, and Shidiya. These terminals will facilitate the efficient handling and transport of minerals, creating more seamless and efficient logistics and export operations. Additionally, the project will comprise maintenance, repair, and operation of the railway network.
This strategic connection aims to create a transformative shift in the transport of essential materials, enhance export capabilities, and improve logistical efficiency, thus, creating job opportunities in the transport and mining sectors, and contributing to economic development in the Kingdom.
The Jordanian railway network project, which will be implemented by Etihad Rail in Jordan, is characterised by its strategic connection between phosphate and potash mines and the Port of Aqaba, a major port in the Red Sea region. Strategically located between Europe, Asia, and Africa, the port plays a pivotal role in the development of the Jordanian economy, handling most imports and exports to and from the Hashemite Kingdom, including products from the mining industries such as raw phosphate and potash, which are among the most abundant natural resources in the country.
The new rail system in Jordan is part of the investment package worth approximately USD 5.5 billion that Jordan signed with the UAE at the end of 2023, in the presence of His Majesty King Abdullah II and his brother, His Highness Sheikh Mohammed bin Zayed Al Nahyan, the President of the United Arab Emirates.
“These agreements, along with the series of investment initiatives, are part of a broader memorandum of understanding, agreement, and series of investment initiatives that Jordan signed with the UAE in November 2023. This series of investment initiatives have a total value of USD 5.5 billion,” the Prime Minister of Jordan, Bisher Al-Khasawneh, said.
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