Jordan and UAE Break Ground on $2.5 Billion Railway
Jordan and the United Arab Emirates launched a $2.5 billion railway project to connect the port of Aqaba with major mining centers and logistics zones.
King Abdullah II of Jordan and Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, broke ground on October 5 in Aqaba for the Aqaba-Al-Shidiyeh-Maan railway. The $2.5 billion strategic infrastructure project consists of a 403-kilometer freight network connecting the port of Aqaba with the Maan Logistics Zone and key phosphate and potash production sites in Al Shidiyeh and Ghor Al-Safi.
Developed by the Jordan-UAE Railway Company, the project is a 50-50 joint venture between UAE-based L’IMAD Holding Company and a Jordanian consortium including the Jordan Phosphate Mines Company, Arab Potash Company, Government Investments Management Company, and the Social Security Investment Fund. The network, which includes 55 bridges and six tunnels, is designed to transport 16 million tonnes of minerals annually. Construction is expected to take five years.
The project aims to reduce annual transportation costs by $40 million, alleviate road traffic pressure, and create 5,000 jobs in southern Jordan. Etihad Rail, a subsidiary of L’IMAD Holding, will operate and manage the network. Following the ceremony, President Sheikh Mohamed of the UAE and King Abdullah II spoke by phone to discuss the railway as a cornerstone of their long-term development agenda and to coordinate on regional security and stability.
