UAE, Jordan Sign US$2.3 Billion Rail Project Deal

By Simon West

The UAE and Jordan have signed a US$2.3 billion deal to build a 360-kilometer railway connecting Jordan’s phosphate and potash mines at Al-Shidiya and Ghor Al-Safi to the Port of Aqaba.

The project is expected to transport up to 16 million tonnes of minerals annually, according to the UAE’s state news agency WAM. The Port of Aqaba is Jordan’s only seaport, located in the far south of the country on the Red Sea.

The initiative will be executed through the newly formed UAE-Jordan Railway Company, a joint venture between Abu Dhabi-based L’IMAD Holding Company and several Jordanian partners. The JV will oversee construction, operations and maintenance, with implementation led by Etihad Rail, the developer of the UAE’s national rail network.

The railway is expected to strengthen Jordan’s export capacity by providing a direct link between sites and port infrastructure, reducing transport times and costs, WAM said.

“This agreement reflects our firm belief that investment in transport infrastructure is the cornerstone of any genuine economic transformation,” Jassem Mohammed Bu Ataba Al Zaabi, chairman of the Abu Dhabi Department of Finance and managing director and group CEO of L’IMAD Holding, was quoted as saying.

“In the UAE, we believe that regional prosperity is a shared responsibility, and this project is a clear expression of our commitment to supporting our partners in building a more connected and competitive future regionally and globally.”

The UAE-Jordan venture is the latest in a line of ambitious rail projects being developed across the Middle East. Speaking to Breakbulk, Edward James, head of content and research at MEED, pointed to a “golden age of rail” in the GCC.

James highlighted Etihad Rail, which was originally built to carry sulfur from an oilfield in Abu Dhabi to the coast, but has since expanded nationwide to link Abu Dhabi, Dubai, Sharjah and Fujairah up to the Saudi border.

Breakbulk and project cargo are benefitting from the infrastructure buildout, with the transport of earthmoving equipment, track-laying wagons, locomotives and concrete sleepers driving demand for heavy-lift logistics support.

Photo: An Etihad Rail wagon snakes through the UAE desert. Credit: Etihad Rail