$2.5 Billion Aqaba Railway Project To Transport 16 Million Tons Of Minerals Annually, Create 5,000 Jobs

(MENAFN- Jordan News Agency)

Aqaba, Oct. 19 (Petra) -- A $2.5 billion railway project linking Aqaba, Shidiya and Ma'an is expected to transport up to 16 million tons of phosphate and potash annually and create approximately 5,000 jobs, according to Jordan-UAE Railway Company Chair Mohammad Thneibat.

The project, being developed under a Jordanian-Emirati partnership, aims to improve the efficiency of mineral transport, connect production sites with Aqaba's ports and attract local and foreign investment. It is also expected to support Jordanian exports and strengthen Aqaba's position as a maritime and logistics gateway for the national economy. The project is being developed alongside plans to upgrade Aqaba's ports and establish the Aqaba-Ma'an dry port.

During a visit to Aqaba on Monday, Prime Minister Jafar Hassan stressed the importance of continuing to develop port infrastructure and logistics services alongside the railway project to improve freight handling, storage and transit trade, and strengthen Aqaba's position as a regional transport and logistics hub.

Thneibat told the Jordan News Agency (Petra) that the railway represents a strategic investment that will enhance the competitiveness of Jordan's economy and support the transport, mining and logistics sectors. He said the project will extend 403 kilometers, including 360 kilometers dedicated to phosphate and potash transport routes and a 43-kilometer connection between Shidiya and Ma'an. The railway is designed to transport 13 million tons of phosphate and approximately 3 million tons of potash annually, connecting key locations in Aqaba, Shidiya, Ghor Safi and Ma'an.

Thneibat said the project is expected to create approximately 5,000 jobs in southern Jordan, helping reduce unemployment and support local economic development. He added that the railway will be integrated with the Ma'an dry port project, strengthening connections between production facilities, logistics centers and maritime transport.

Regarding implementation, Thneibat said work had already begun with the award of an initial contract worth approximately $10 million to construct access roads to railway sites, tunnels and bridges in preparation for the main construction phase. Major construction work is expected to begin in early 2027 and take approximately five years to complete.

Thneibat said the project's economic benefits would extend to Aqaba, Ma'an, Shidiya and eastern Amman, with potential future expansion toward Iraq, Syria, Turkey and Gulf countries to establish an integrated regional transport network. He noted that Aqaba would be among the main beneficiaries, serving as the railway's maritime outlet and supporting port activity, logistics investment and wider economic growth.

On ownership and operational sustainability, Thneibat explained that the terms of the Jordanian-Emirati railway partnership are publicly available and provide for ownership to transfer to the Jordanian government after the agreement's 30-year term, subject to possible extension. He said the project would be handed over to the government in good operational condition, allowing services to continue.

For his part, Aqaba Special Economic Zone Authority (ASEZA) Chair Shadi Majali said the railway would strengthen integration between Aqaba Port and production and mining areas while supporting the development of a multimodal freight transport system.

Majali told Petra that the project's significance extends beyond transporting phosphate and potash to establishing an integrated logistics network linking ports with industrial zones, storage facilities and distribution centers. He said the network would create opportunities to expand economic activities associated with trade and transport.

Developing railway connections alongside logistics facilities and infrastructure projects would also help Aqaba attract investment in transportation, warehousing, cargo handling and supporting services, while opening new opportunities for private sector participation, he added.

Majali said the ASEZA is coordinating with relevant authorities to develop the Aqaba-Ma'an dry port project, which would complement the railway and extend its economic benefits to Ma'an and other southern governorates.

He noted that shifting freight transport to rail could improve efficiency, reduce certain logistics costs and make shipments more reliable. Rail transport could also ease pressure on roads caused by heavy trucks, improving road safety and helping preserve road infrastructure.

Majali added that stronger connections between production areas and Aqaba's port would enhance the competitiveness of Jordanian exports by improving supply chain reliability and providing more efficient transport options. This would help companies manage their commercial and export operations more effectively, he said.

He stressed that the ASEZA's role includes creating a favorable investment environment, coordinating with relevant stakeholders and linking infrastructure development with economic opportunities to diversify investment, increase value added to the national economy and generate employment.

//Petra// AJ

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