JORDAN: A groundbreaking ceremony has formally launched the UAE-backed US$2.5bn Aqaba – Al-Shidiyeh – Ma’an Railway Project to link mining areas with the Red Sea port.

The 403 km network being developed by Jordan-UAE Railway Co will fan inland from Aqaba through southern Jordan’s mining belt. Connecting key production sites with the Ma’an Logistics Zone, the network will serve an area Jordan plans to develop into a major logistics hub, including a dry port, customs facilities and industrial activities.

Intended to handle both bulk cargo and containers between ports, production centres and inland logistics facilities, its core traffic will be phosphate and potash, two of Jordan’s main mineral exports. Mineral traffic is estimated at 16 mpta.

The railway is expected to reduce pressure on the road network, with the developers estimating that it could cut phosphate and potash transport costs by around US$40m/year.

Construction will include around 55 bridges and six tunnels.

UAE backing

The groundbreaking took place in Aqaba on October 5 in the presence of King Abdullah II of Jordan and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.

The project company is split evenly between Abu Dhabi’s sovereign investment platform L’IMAD Holding and four Jordanian shareholders. The Jordanian side combines state-backed investment bodies with Jordan Phosphate Mines Co and Arab Potash Co, the two mineral producers expected to provide much of the railway’s traffic.

For Abu Dhabi, the investment provides a direct stake in the railway and its future freight revenues, while also giving Etihad Rail a role in a major project outside the UAE as it seeks to expand its presence across the region. According to Jordan-UAE Railway Co Vice-Chairman Shadi Malak, Etihad Rail will contribute experience gained from developing and operating the UAE’s national railway network.

Jordan also has longer-term ambitions for the railway. The government has described the Aqaba project as a basis for future expansion north towards Syria and Mediterranean ports, as well as connections towards Saudi Arabia and the Gulf. The project is expected to create around 5 000 jobs, while also generating work for local companies in construction, engineering, maintenance, logistics and technology.

Earlier Jordanian government plans envisaged a five-year implementation period, although the latest announcement did not give an opening date.