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The Saudi Jordanian Investment Fund (SJIF) signed a deal with Aqaba Special Economic Zone Authority (Aseza) to develop a rail network at an investment of $705.2 million.
The rail network will connect Aqaba’s seaports to a dry port in Ma’an area of the Kingdom, thus forming the first phase of Jordan’s national railway network, said a statement from SJIF.
Being SJIF’s first major investment in Jordan, the Aqaba-Ma’an railway and the Ma’an dry port project is planned to enhance Jordan’s transportation sector and its capabilities in logistics services.
The MoU outlines the form of co-operation between SJIF and Aseza to advance the railway and dry port project, which includes completing thorough technical and feasibility studies, said the statement.
Upon completion of the studies, SJIF and ASEZA would commence project development.
The scope of work includes construction of a new railway line inside the city of Aqaba connecting the southern seaport and container terminal with the existing line, renovation of the existing railway line connecting the city of Aqaba to Ma’an besides procurement of new rolling stock, wagons, and other equipment, and constructing a dry port in Ma’an on 4 million square meters of land.
Upon completion, the railway will operate along a 195 kilometres rail track, transporting cargo containers from and to Aqaba as well as phosphate from the mines in Shidiya to Aqaba for export, said the statement.
The project is a major public private partnership (PPP) aimed at enhancing Jordan’s logistics offering through providing more efficient transportation solutions and supporting growth and job creation in the local communities in Aqaba and Ma’an, it added.
"We are confident that our partnership with Aseza will serve as a model for effective cooperation between the public and private sectors – a model we hope will demonstrate Jordan’s investment potential, encourage future investments in Jordan, and improve Jordan’s competitiveness, in addition to fostering further cooperation between Saudi Arabia and Jordan," SJIF chairman Hisham Attar said.
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