Saudi Arabia, Jordan sign agreement to build $705m railway project
Scheme to be implemented through Saudi-Jordan Investment Fund Co, 90% which is held by Saudi's PIF
A railway line worth $704.7m (SAR2.6bn) to transport goods between the Jordanian Port of Aqaba and Ma’an Land Port will be built following an agreement between Saudi Arabia and Jordan.
A memorandum of understanding was signed by the Saudi-Jordan Investment Fund Company and Aqaba Special Economic Zone Authority to build, manage, and operate the infrastructure project.
Saudi Arabia’s Public Investment Fund (PIF) contributes up to 90% of the cash in the Saudi-Jordan Investment Fund Company’s kitty, but it has yet to be revealed whether the sovereign wealth fund will provide capital for the project. Jordanian banks account for approximately 10% of the capital in the fund, according to Saudi Arabia's state news agency, SPA.
Construction details of the rail project have not been publicised. The project is part of Jordan’s aim to link up its main cargo distribution points through a rail network, which would ensure goods can be carried across the county more efficiently in the future.
The scheme is part of Jordan’s National Railway Project that seeks to link the country to the GCC and Europe. It is primarily intended for the transport of goods, but passenger travel may become a possibility if the country's future mobility requirements make it necessary.