Amman – Jordan announced on Wednesday the signing of documents with the UAE to establish a $2.3 billion railway investment project to link the port of Aqaba (south) on the Red Sea with the potash and phosphate mining areas in Al-Shidiya and Ghor Al-Safi (central).
This came according to a statement by the Jordanian Prime Minister’s Office, a copy of which was received by Anadolu Agency.
The statement said that Prime Minister Bisher Al-Khasawneh sponsored the signing of 4 agreements to establish the project, as part of a package of investment projects signed by Jordan with the Emirati side in the presence of King Abdullah II and UAE President Mohammed bin Zayed Al Nahyan, at the end of 2023, worth $5.5 billion.
Al-Khasawneh said: “Today, we signed Emirati investment documents worth $2.3 billion, to link the port of Aqaba to the mining areas in Al-Shidiya and Ghor Al-Safi.”
He pointed out that “the project needs 5 years to start the actual operation of the railway, i.e. in 2030; as the detailed studies required on the railway tracks and the handling requirements for potash and phosphate will be completed during the current year and until the end of 2025, and the target is to offer tenders for the implementation of the construction works in early 2026.”
Al-Khasawneh explained, “Establishing this railway will allow us to significantly increase our logistical and export capabilities, with a volume starting at 16 million tons of phosphate and potash products.”
He explained that “the vital project for the Kingdom will link the most important mining sites to the industrial port and the phosphate port to Wadi Al-Yatm in Aqaba, in addition to improving logistical and export efficiency, which will contribute to providing new job opportunities in various logistical fields, mining sectors, railways and other related sectors.”
Al-Khasawneh pointed out that “the railway route will start from the phosphate port and the industrial port in Aqaba to Wadi Al-Yatm in the north to Al-Shidiya, and another route from Wadi Al-Yatm in the west to Ghor Al-Safi via Wadi Araba.”
He added: “This project will be implemented under the umbrella of the Jordan Investment Fund Law, and its implementation will take 5 years.”
In turn, the Jordanian statement quoted the UAE Minister of Investment, Mohammed Hassan Al Suwaidi, as saying: “The agreement reflects the UAE’s commitment to harnessing our joint and bilateral efforts to drive economic growth and enhance economic flexibility and diversity in the two brotherly countries, by enhancing the prospects of cooperation, capabilities, and exchange of technical expertise.”
Anatolia
#Jordan #UAE #sign #billion #railway #project #documents
2024-09-06 10:30:21
Jordan and UAE Sign $2.3 Billion Railway Investment Project to Boost Economic Growth
In a significant move to strengthen economic ties and enhance trade capabilities, Jordan and the United Arab Emirates (UAE) have signed a landmark agreement to establish a $2.3 billion railway investment project. The ambitious project aims to connect the port of Aqaba on the Red Sea with the potash and phosphate mining areas in Al-Shidiya and Ghor Al-Safi, respectively, in central Jordan.
According to a statement released by the Jordanian Prime Minister’s Office, the signing of the agreement took place in the presence of King Abdullah II and UAE President Mohammed bin Zayed Al Nahyan, marking a major milestone in the countries’ bilateral cooperation. The project is part of a larger package of investment projects worth $5.5 billion, underscoring the commitment of both nations to fostering economic growth and development.
Key Features of the Railway Project
The railway project, slated to commence operations in 2030, will span a period of five years, with detailed studies and handling requirements for potash and phosphate to be completed by the end of 2025. The project’s implementation will be tendered out in early 2026, following the completion of the necessary preparations.
Once operational, the railway will significantly enhance Jordan’s logistical and export capabilities, with an initial capacity to transport 16 million tons of phosphate and potash products. The project will also create new job opportunities in various sectors, including logistics, mining, and railways.
The railway route will stretch from the phosphate port and industrial port in Aqaba to Wadi Al-Yatm in the north, and another route from Wadi Al-Yatm in the west to Ghor Al-Safi via Wadi Araba. This strategic connectivity will improve the efficiency of Jordan’s export operations, reducing transportation costs and increasing the country’s competitiveness in the global market.
Economic Impact and Benefits
The railway project is expected to have a profound impact on Jordan’s economy, driving growth, and creating employment opportunities. The increased efficiency and capacity in transporting phosphate and potash products will boost the country’s export earnings, contributing to its economic development.
The project will also enhance Jordan’s position as a key player in the regional and global mining industry, attracting investments and fueling economic growth. Furthermore, the improved logistical infrastructure will increase the competitiveness of Jordanian products, enabling them to reach a wider market and compete more effectively with other countries.
Strengthening Bilateral Ties
The signing of the agreement marks a significant step forward in strengthening the bilateral relations between Jordan and the UAE. The two countries have long enjoyed a strong partnership, with cooperation in areas such as trade, investment, and tourism.
The $2.3 billion railway investment project is a testament to the commitment of both nations to fostering economic growth, development, and cooperation. The project’s successful implementation will not only benefit Jordan and the UAE but also contribute to the overall economic prosperity of the region.
Conclusion
the signing of the $2.3 billion railway investment project between Jordan and the UAE is a landmark agreement that will drive economic growth, create employment opportunities, and enhance the competitiveness of Jordanian products in the global market. The project is a testament to the strength of bilateral ties between the two nations and their commitment to fostering economic development and cooperation in the region.
