Sheikh Khaled bin Mohamed, Crown Prince of Abu Dhabi and Chairman of Abu Dhabi Executive Council, and King Abdullah II of Jordan attended the ground-breaking ceremony for the Aqaba-Al-Shidiya-Maan Railway Project on Monday.
The project entails building a 403-kilometre $2.3 billion transport network connecting the Port of Aqaba with major mining centres in Al Shidiya and Ghor Al Safi in Jordan. The investment is expected to boost the mining sector by providing a direct connection between mines and ports, reducing transport costs and improving supply efficiency.
The UAE signed the project in July, with Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, in attendance. Monday's ground-breaking is a step forward in regional transport infrastructure, developed by the Jordanian-Emirati Railways Company.
Sheikh Khaled was received by King Abdullah at King Hussein International Airport in Aqaba, alongside several senior officials. The Crown Prince also met officials involved in the project. He said the project reflected the two countries’ commitment to further strengthening their bilateral partnership across key sectors.
Dr Mohammad Thneibat, chairman of the Jordan-UAE Railway Company, said the ground-breaking marked the beginning of a new chapter in the Jordan-UAE partnership.
“It reflects the vision of the leadership of both countries to translate co-operation and mutual trust into development and investment projects with tangible impact,” he said.
“The significance of this project lies in its ability to connect production centres with the ports of Aqaba and regional and global markets, enhance the efficiency of the transport and logistics ecosystem, strengthen the competitiveness of national exports and create long-term value for the economy and society, thereby reinforcing Jordan’s position in regional and international trade.”
Scale of the project
In addition to the rail tracks, about 55 bridges, six tunnels and associated engineering structures will be built. Designed to carry about 16 million tonnes of phosphate and potash annually, the line aims to slash transport costs and streamline export logistics from Jordan's mining hubs directly to shipping terminals in Aqaba.
The new railway will replace a congested road from Ghor Al Safi, in the Jordan Valley, to Aqaba, where potash is currently transported by lorry, and an old rail line that moved phosphate export cargo from Al Shidiya, in the south, to the port.
The project’s economic impact will extend across the various sectors and regions it serves. It is expected to create about 5,000 jobs in southern Jordan and reduce mineral transportation costs by around $40 million annually, enhancing the competitiveness of Jordan’s mining sector.
The project will also create broader opportunities for companies in engineering, construction, maintenance, logistics, technology and supporting industries, while boosting economic activity and supporting development across Jordan's southern governorates.
Developed and operated through the UAE-Jordan Railway Company, the construction project is a 50-50 joint venture between UAE sovereign investment company L'imad Holding and a consortium from the kingdom, consisting of Jordan Phosphate Mining Company, Arab Potash Company, the investment management company Musahamat and the Social Security Fund, Petra news agency reported. Construction is expected to take five years.
UAE's cross-border rail initiatives
The UAE is involved in several national and cross-border rail initiatives, including the Etihad Rail network, a 1,200km flagship railway spanning all seven emirates for heavy freight and passenger services. The UAE is also co-developing the Hafeet Rail (Oman-UAE Rail) link connecting Abu Dhabi to Sohar Port.
The UAE is also a key signatory in the India-Middle East-Europe Economic Corridor. The multinational transport framework is designed to link India to Europe via a combined ship-to-rail transit network traversing the UAE, Saudi Arabia, Jordan and Israel.
This multibillion-dollar rail and shipping corridor would “significantly enhance connectivity and integration between participating countries”, Wam reported.
