Jordan and UAE Launch US$2.5 Billion Freight Railway Project

Jordan, October 2026 — Jordan and the United Arab Emirates are advancing a major railway infrastructure project designed to strengthen the country’s freight transport network and improve connections between industrial production sites and maritime trade routes. The Aqaba–Al-Shidiyeh–Ma’an Railway Project officially broke ground on 5 October, establishing a new phase in bilateral infrastructure cooperation and Jordan’s efforts to modernise freight logistics.

The project involves an investment of approximately US$2.5 billion and the development of a 403-kilometre railway connecting Aqaba with key phosphate and potash production areas and the Ma’an Logistics Zone. The infrastructure package includes railway tracks, approximately 55 bridges, six tunnels and associated engineering structures. The network is designed to transport around 16 million tonnes of phosphate and potash annually, alongside containerised freight, linking mining operations and inland logistics facilities directly with Aqaba’s port infrastructure.

The railway is expected to reduce reliance on road haulage for bulk mineral exports, improve freight efficiency and ease pressure on the road network. Project estimates indicate that shifting mineral transport to rail could lower transportation costs by approximately US$40 million annually and generate around 5,000 jobs in southern Jordan. The development is also intended to strengthen the competitiveness of Jordan’s mining industry and create opportunities for local businesses in construction, maintenance, logistics and supporting services.

The project is being developed by the Jordan-UAE Railway Company, a joint venture between UAE-based L’IMAD Holding and Jordanian partners Jordan Phosphate Mines Company, Government Investments Management Company, the Social Security Investment Fund and Arab Potash Company. Etihad Rail will contribute its experience in railway development and operations. Chinese contractors China Civil Engineering Construction Corporation and China First Highway Engineering Company have begun construction activities, with the overall project expected to take approximately five years to complete.

The railway represents a significant step towards integrating Jordan’s mining, freight and maritime transport infrastructure into a more coordinated logistics system. Alongside port improvements and planned dry-port facilities, the line could strengthen Aqaba’s role as a regional trade gateway while creating a foundation for potential future railway connections to neighbouring countries. Its long-term impact will depend on successful construction, effective freight operations and integration with industrial and port facilities.

Source: RailMarket