UAE, Jordan break ground on 403km phosphate and potash railway

Summary

• Abu Dhabi and Amman launched construction of a 403-kilometre freight railway linking mines to Aqaba port.
• The line will carry 16 million tonnes of phosphate and potash a year.
• It is expected to cut Jordan's transport costs by about $40 million annually.

The latest

Construction began on a 403-kilometre freight rail network in southern Jordan connecting the mining centres of Al-Shidiya and Ghor Al-Safi to the Port of Aqaba. Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed and Jordan's King Abdullah II broke ground on the project, according to Semafor Gulf. The scheme replaces truck convoys and an ageing freight track.

Details

• The cost: Semafor Gulf put the project value at $2.3 billion, while ZAWYA Projects reported $2.5 billion, citing Emirati newspaper Emaratalyoum and Jordanian media. Both describe the same Aqaba–Shidiya–Ma'an network, developed by the Jordanian-Emirati Railway Company, with construction expected to run over five years.
• The volumes: The network is designed to move roughly 16 million tonnes of phosphate and potash a year to Aqaba, according to ZAWYA Projects. Both minerals feed the fertiliser industry, Jordan's principal export earners, and the line is projected to trim annual transport costs by about $40 million.
• The engineering: The build comprises 403 kilometres of track, around 55 bridges, six tunnels and associated structures, ZAWYA Projects reported. Route 1 runs from Aqaba to Shidiya carrying phosphate; Route 2 runs from Aqaba to Ghor Al-Safi carrying potash.
• The Ma'an link: A 43-kilometre connection will tie Shidiya to Ma'an, reinforcing the area's role as a development zone and logistics centre serving eight regional markets: the UAE, Saudi Arabia, Bahrain, Oman, Qatar, Kuwait, Iraq and Syria, according to ZAWYA Projects.
• The ownership: The Jordanian-Emirati Railway Company is an equally owned joint venture between UAE-based Limad Holding and Jordanian partners: Jordan Phosphate Mines Company, Government Investments Management Company, the Social Security Investment Fund and Arab Potash Company, ZAWYA Projects reported.
• The operator: Etihad Rail, a subsidiary of the Emirati partner, will operate and manage the network once built, according to ZAWYA Projects. The company already runs the UAE's domestic rail system and is a partner in Hafeet Rail, the line being developed toward Oman.
• The jobs: The project is expected to create 5,000 jobs in southern Jordan and ease freight pressure on the road network, ZAWYA Projects reported. Neither account specified when hiring begins or how many positions are tied to construction rather than permanent operations.
• The framework: The railway forms part of a $5.5 billion investment framework the two governments agreed in 2023, according to Semafor Gulf. The remaining components of that framework and their timelines were not detailed.
• The wider map: Semafor Gulf reported that the UAE is investing in rail infrastructure across the region, including Etihad Rail domestically, Hafeet Rail to Oman, and links tied to the planned India-Middle East-Europe corridor, a route that would pass through Jordan.

Background

Jordan's phosphate and potash shipments have long moved to Aqaba by truck convoy and an ageing freight line, a bottleneck for the country's largest mineral exports. Aqaba is Jordan's sole sea gateway and the exit point for those cargoes.

Between the lines

The Ma'an leg points beyond Jordan's own export traffic. It is built around a logistics zone pitched at eight regional markets, positioning the line as a potential node rather than a closed mine-to-port shuttle. Semafor Gulf's framing of the India-Middle East-Europe corridor running through Jordan sits alongside Etihad Rail's operating role, giving Abu Dhabi a stake in a corridor it would also help run.

What's next

Watch the five-year construction timeline for tunnel and bridge milestones, the start of hiring in southern Jordan, and whether the remaining components of the 2023 $5.5 billion framework are announced.

Source: Semafor Gulf; ZAWYA Projects (Majda Muhsen); Emaratalyoum