Supply Chain
Jordan Moves to Expand Freight Rail Network as Hormuz Disruptions Reshape Supply Routes
$2.3 billion Aqaba line on Red Sea trade route nears construction
Cargo vessels queue in the Strait of Hormuz, a critical global shipping chokepoint, where disruptions are driving interest in inland freight corridors such as Jordan’s planned Aqaba rail link.
Jordan has launched formal cross-border rail studies with Saudi Arabia and Syria, expanding the scope of a newly signed $2.3-billion freight railway project moving toward financial close and positioned as the first segment of a wider regional network.
Transport officials from the three countries agreed to form a joint technical committee to study alignments, operations and feasibility for a cross-border rail link, according to Jordanian officials and project disclosures.
The move marks a shift from long-discussed regional ambitions toward structured coordination, though route, delivery model and procurement remain undefined.
That push comes amidst regional conflict and Jordan’s advancement of the Aqaba Port Railway, a 360-kilometer freight line designed to move phosphate and potash from inland mining centers to the Port of Aqaba, the country’s only seaport.
Jordan and the United Arab Emirates on April 15 signed definitive agreements to establish the UAE–Jordan Railway Co., a 50-50 joint venture responsible for delivering, operating and maintaining the future line.
The agreement “covers the construction and operation of a 360-kilometer railway linking the main mining areas … to the Port of Aqaba,” with capacity to transport 16 million tonnes annually of phosphate and potash, according to the UAE state news agency WAM.
The joint venture will execute the project through Etihad Rail, the developer and operator of the UAE’s national railway network, tying the effort to a regional operator with recent large-scale delivery experience.
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Jordanian Transport Minister Nidal Qatamin said the project will “mark a qualitative leap in Jordan’s mining sector,” citing its role in reducing transport costs and improving export competitiveness.
The railway will connect phosphate mines in Shidiya in southern Jordan and potash production sites in Ghor Al Safi near the Dead Sea to Aqaba’s industrial terminals, with planned capacity of about 16 million tonnes annually, including 13 million tonnes of phosphate and 2.6 million tonnes of potash.
Jordan Phosphate Mines Co. reported producing more than 11.5 million tonnes of phosphate in 2024, much of it transported by truck.
Engineering scope reflects terrain and throughput requirements. Plans include “an extensive array of tunnels and bridges” across Jordan’s southern interior and the Jordan Valley—part of the Great Rift system—along with new terminals to handle bulk mineral flows at mine and port interfaces, according to Jordan’s official news agency Petra.
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Officials frame the project as a logistics reset for a sector still dominated by trucking. Jordan’s national transport strategy identifies an oversized, aging truck fleet and heavy reliance on road freight as key constraints, with more than 21,000 tractor units in operation and an average truck fleet age exceeding 19 years.
That assessment aligns with third-party analysis. The European Bank for Reconstruction and Development said in its 2025 Jordan report that limited rail infrastructure and reliance on road freight constrain logistics efficiency and integration into regional trade corridors, and called for expanded rail links to support export competitiveness.
The report noted that freight trains produce about 9% of the carbon emissions per ton-kilometer compared with road transport, while lowering logistics costs and improving system efficiency.
Jordan’s broader policy context underscores the stakes. The Ministry of Transport says the country's lack of an integrated rail system results in “limited financial resources and high costs” that have slowed infrastructure development and limits Jordan’s ability to compete with regional logistics hubs.
Prime Minister Jafar Hassan described the Aqaba railway as part of a broader effort to “modernize Jordan’s logistics backbone and integrate its heavy industry more deeply into global supply chains,” according to Petra.
The government is positioning the line as an anchor segment of a planned national network that would extend north toward Amman and eventually connect to Syria, Turkey and Mediterranean ports, while also linking to Gulf rail systems.
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Global Shipping Disruptions Elevate Rail’s Strategic Role
The project's timing coincides with disruptions to global shipping routes caused by heightened U.S.–Iran tensions. Traffic through the Strait of Hormuz—a primary conduit for energy and bulk commodities—has all but ceased, with vessels rerouting or delaying transit amid security risks and rising insurance costs. The disruption is increasing interest in inland freight corridors and rail-based logistics as more predictable alternatives to maritime chokepoints.
The newly launched cross-border studies with Saudi Arabia suggest that longer-term plans are moving into early technical development, particularly around connections at the Jaber and Al-Omari border crossings.
Still, the cross-border component remains preliminary. Key issues—including interoperability standards, border processing, security coordination and delivery frameworks—must be addressed.
The immediate opportunity remains the domestic railway. Financial close is targeted for early 2027, followed by an approximately five-year construction period, according to official statements.
The project’s delivery model reflects Jordan’s broader infrastructure financing approach, which emphasizes public-private partnerships as essential due to limited public funding capacity, noting that “high investment costs” have historically slowed large-scale transport development.
That constraint underscores the stakes for the Aqaba railway. If delivered, the project would shift bulk commodity transport from road to rail and test whether Jordan can execute large-scale, privately financed rail infrastructure—and translate early-stage regional coordination into a functioning cross-border freight network.
Bryan Gottlieb is the online editor at Engineering News-Record (ENR).
Gottlieb is a five-time Society of Professional Journalists Excellence in Journalism award winner with more than a decade of experience covering business, construction and community issues, including finance, law and real estate. He has reported for Adweek and the San Diego Daily Transcript and led a community newsroom in Santa Monica, Calif. He served as editor-in-chief of the Detroit Metro Times and as managing editor at Roofing Contractor, where he helped shape national industry coverage. At Engineering News-Record, Gottlieb covers breaking news, large-scale infrastructure and megaprojects, regulatory developments and business trends across the U.S. and global construction sectors.
email: gottliebb@enr.com | office: (248) 786-1591
