Dubai (PlantAndEquipment.com) - Jordan and the UAE have started ground on a $2.5 billion railroad project that will link the Port of Aqaba to key phosphate and potash production centers in southern Jordan, kicking off construction of a 403-kilometer freight network.

The Jordan-UAE Railroad Company is developing the Aqaba-Al Shidiyeh-Maan Railroad, which will link mining activities in Al Shidiyeh and the Maan Logistics Zone to Aqaba's port facilities. The network is intended to move bulk materials and containers between manufacturing facilities, inland logistics hubs, and export ports.

Construction will include laying 403 kilometers of railroad lines, constructing around 55 bridges and six tunnels, and establishing accompanying rail infrastructure.

Once operational, the railroad is planned to carry about 16 million tons of phosphate and potash per year, lowering mineral transportation costs by an estimated $40 million. The project is also projected to create around 5,000 jobs in southern Jordan while reducing heavy-truck traffic on the country's road network.

The project is being developed in collaboration with UAE-based L'IMAD Holding Company and Jordanian shareholders such as Jordan Phosphate Mines Company, Arab Potash Company, Government Investments Management Company, and the Social Security Investment Fund.

As Jordan increases its freight transport infrastructure and aims to boost the competitiveness of its mineral exports, the expansion will also depend on Etihad Rail's railroad construction and operation expertise, which is owned by L'IMAD Holding.

The groundbreaking ceremony on October 5 was attended by Jordan's King Abdullah II and Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.