UAE and Jordan sign a USD 2.3 billion railway project deal to enhance logistics and export operations. Here’s what the agreement includes.
Railway project in Middle East: To enhance connectivity, the United Arab Emirates (UAE) and Jordan have signed agreements to develop a railway project. With an estimated investment of around USD 2.3 billion, the new infrastructure project aims to link key routes and further strengthen ties between the two nations.
UAE-Jordan railway project
Under the agreement, a 360-km-long railway line will be constructed to connect the key mining hubs of Al-Shidiya and Ghor Al-Safi with the Port of Aqaba, a major port in the Red Sea region. The project is expected to handle around 16 million tonnes of phosphate and potash annually.
Strategically located between Europe, Asia, and Africa, the Port of Aqaba plays an important role in Jordan’s economy. It handles the majority of the country’s imports and exports, including key mining products such as raw phosphate and potash.
As part of the agreement, a joint venture i.e. the UAE-Jordan Railway Company, will be established to oversee the implementation, operation, and maintenance of Jordan’s railway network. The project will be executed by Etihad Rail. The Etihad Rail is the developer and operator of the UAE’s national railway network.
Significance of UAE-Jordan railway project
On completion, this railway network will play a significant role in Jordan’s mining sector by reducing transport costs for phosphate and potash. The project will also support comprehensive economic development and open wide prospects for job creation across multiple sectors. The UAE-Jordan railway line project is expected to take about five years to become operational, with services projected to commence by 2030.
