Jordan-UAE Railway Company breaks ground on freight rail line

A joint venture between the UAE and Jordan has begun work on a 403km rail network linking key mining and production sites to Aqaba, a port city on the Red Sea.

The $2.5 billion Aqaba–Al-Shidiyeh–Maan railway project is being developed by the Jordan-UAE Railway Company, Abu Dhabi Media Office said in a statement.

The joint venture is owned by Abu Dhabi wealth fund L’Imad and four Jordanian companies: Jordan Phosphate Mines Company, the Government Investments Management Company, the Social Security Investment Fund, and the Arab Potash Company.

King Abdullah II and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan witnessed the groundbreaking.

The rail line will carry bulk cargo and containers between ports, production centres and inland logistics facilities.

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The project includes the construction of railway tracks, about 55 bridges, six tunnels and associated engineering structures.

The network is expected to transport about 16 million tonnes of phosphate and potash annually, improving the movement of minerals from production sites to the Port of Aqaba.

The project is forecast to create 5,000 jobs in southern Jordan and cut phosphate and potash transportation costs by at least $40 million a year.

In August, the state-backed Abu Dhabi Fund for Development signed an agreement with Jordan’s planning ministry to provide AED1.1 billion ($300 million) to support the general budget.