Aqaba, April 18 (Petra) – Jordan is moving to transform the city of Aqaba into a global trade gateway and a regional transport hub linking Asia and Europe, following the signing of a major investment agreement with the United Arab Emirates valued at $2.3 billion to develop the Aqaba Port Railway Project.
The project, the largest in the history of Jordan’s railway sector, entails the construction of a 360-kilometer rail line connecting key mining areas in Shidiya and Ghor al-Safi to Aqaba Port. It will enable the transport of approximately 16 million tons of phosphate and potash annually for export to global markets, marking a new economic phase driven by more efficient supply chains.
The initiative grants Aqaba a significant competitive edge on the global map, strengthening its position as Jordan’s sole seaport and a key transit gateway for neighboring countries, underscoring its strategic importance on the Red Sea.
This advantage is further reinforced by the ports’ capacity to handle and transport millions of tons of mineral resources efficiently, enhancing the reliability of Jordanian exports in international markets. The integration of high-capacity seaports with a modern railway network is set to position Aqaba among leading global logistics hubs.
Stakeholders and experts said the project is expected to deliver substantial economic gains, notably by significantly reducing traditional overland transport costs. This, in turn, will increase profit margins for national products and improve their price competitiveness. The project is also anticipated to stimulate investment and employment by generating thousands of direct and indirect job opportunities during construction and operation phases, while attracting new investments in manufacturing industries and logistics services. Additionally, it will support the national economy by boosting foreign currency revenues, improving the trade balance, and advancing comprehensive development in southern governorates and the Jordan Valley.
Chairperson of the Aqaba Special Economic Zone Authority, Shadi Majali, told the Jordan News Agency (Petra) that the Aqaba Port Railway Project represents a qualitative leap in the Kingdom’s transport and logistics system, as the largest of its kind under a balanced strategic partnership between Jordanian and Emirati sides, with investments estimated at $2.3 billion.
Majali said the 360-kilometer project will enhance Aqaba’s status as an advanced regional transport and shipping hub and improve infrastructure efficiency in line with global standards. He noted that the project will directly support the mining sector by transporting nearly 16 million tons annually, including about 13 million tons of phosphate and 2.6 million tons of potash, positively impacting exports, reducing transport costs, and improving supply chain efficiency.
He added that this transformation will double the competitiveness of Jordanian products in global markets and enhance the economic value of national resources.
Majali pointed out that the project represents the first phase of a broader vision to establish a national and regional railway network linked to major investment projects valued at up to $5.5 billion, with implementation expected within five years. He stressed that the project will create wide employment opportunities, serve as a development driver for southern governorates, and strengthen Aqaba’s connectivity to regional and international markets, further cementing Jordan’s position as a strategic logistics hub.
Chairperson of the Board of Directors of the Jordan Phosphate Mines Company, Mohammad Thneibat, said the project will help reduce transport costs and improve supply chains, enhancing the competitiveness of Jordanian products and increasing Aqaba’s attractiveness for industrial investments. He added that the project will stimulate the transport and manufacturing sectors and open new economic prospects for southern governorates.
Chairperson of the Board of Directors of the Arab Potash Company, Shihadeh Abu Hdeib, said the project represents a strategic step toward achieving a qualitative shift in transport and export efficiency.
He noted that the Jordanian-Emirati partnership aims to develop a modern transport system that supports national companies in meeting global market demands, commending government support for strategic projects that enhance added value to the national economy and reflect an advanced model of economic cooperation between the two countries.
Economic expert Firas Rawashdeh said the agreement marks a strategic turning point for Aqaba’s economy, as it will transform the port into an integrated regional logistics hub. He noted that its direct impact will include the creation of wide employment opportunities, contributing to reducing unemployment rates, particularly in the Kingdom’s south.
He added that the project represents a genuine boost to the mining sector, and its future integration with regional connectivity plans will reinforce Jordan’s position as a strategic corridor, leading to sustainable development in the national economy.
//Petra// AJ
