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AMMAN — The partnership agreement between Jordan and the UAE aims to establish a joint railway company connecting the Al Hasa mining region and the Arab Potash Company (APC) to Aqaba, Jordan Phosphate Mines Company (JPMC) Chairman Mohammad Thneibat said on Wednesday.
Thneibat said the venture represents a strategic collaboration between Al Emad Company, owned by the Abu Dhabi government, the JPMC, the APC, the Social Security Investment Fund, and the Government Investments Management Company. He added that ownership of the new entity will be equally split, with Jordan and the UAE each holding a 50 per cent stake.
In remarks to Al Mamlaka TV, he said that the company will be registered with the Ministry of Industry, Trade and Supply, with a capital of $2.3 billion.
He described the initiative as one of the largest infrastructure projects launched in the Kingdom in recent years.
The railway is designed to transport 16 million tonnes of phosphate from Sheidiya to Aqaba, as well as raw materials in the opposite direction. It will also facilitate the transport of 3 million tonnes of potash from the APC to the Port of Aqaba.
According to Thneibat, the project is expected to reduce transport costs for potash and phosphate by at least $40 million annually.
He said the savings will significantly enhance the global competitiveness of the companies involved, adding that the project will also generate substantial employment opportunities in the southern region.
Thneibat also noted that the railway will be integrated with the Ma’an Land Port project, which is expected to create approximately 5,000 jobs.
Addressing concerns over the local transport sector, he said the project would not adversely affect existing freight trucking operations in the south.
He stressed that strong demand for transport services between Aqaba and Amman would remain, noting that trucks currently operating from Sheidiya and Ghor Al Safi to Aqaba would continue to have sufficient work despite the new rail link.
