National Railway Network In Jordan Existing Railway Network

National Railway Network In Jordan

Existing Railway Network ü The Old Hejaz Railway which connects Existing Rail Network Syria to Saudi Arabia. ü The more recent Aqaba Railway (ARC) connects Jordan phosphate mines to the port of Aqaba. (trucking of Abiad phosphate is required from Shidyia Hassa Phosphate mine to the rail terminal at Shidiya Aqaba Hejaz ). Legend Hejaz Railway Aqaba Railway Corporation • ARC will be part of the concession perimeter to ensure seamless transfer of traffic and cost synergies. Phosphate Mines

National Railway Network • Jordan will be developing a 897 km-long modern, freight railway network linking main industrial centers, with Aqaba, the country’s gateway port. • The Aqaba corridor will extend to Syria, while the Zarqa line will link with Iraq and KSA.

National Railway Network • The network will also connect the railways of Saudi Arabia , Syria , Iraq. • This network will create a new trade corridor linking GCC countries, with Europe through Syria – Turkey or Mediterranean. ports. Integrated Dynamic Regional Network

Project Background and Facts • Jordan and neighbouring countries signed the Agreement on Rail Development in the Arab Mashreq (Economic and Social Commission for Western Asia - ESCWA 2003). • The ESCWA railway network specified corridors and connecting points. • Later, extended to cover all the Arab countries “Arab Railway Network” within the Arab League (Arab Summit in Kuwait, 2009). • With a proposed network that is fully consistent with EU UIC standards. • Other railway development programs underway in neighbouring countries, including Syria, Saudi Arabia and Iraq.

Project Background and Facts • Jordan is an associated member of OTIF and the Convention concerning the International Carriage by Rail (COTIF). • Jordan will become a full member after the construction of the National Railway Network. • Syria and Iraq are already members in this Convention. • Jordan’s accession to the Convention will facilitate the international transportation of passenger and goods by rail.

Regional Integration and Economic Benefits • Contribute to growth in the Jordanian economy : ü Construction period: 1. 4% (about 10, 000) increase in FTE jobs (Full-time equivalent), 3% increase In GDP. ü Operations period: 0. 4% (about 2800 ) increase in FTE jobs (Full-time equivalent), 0. 6% increase in GDP. • Increase transit traffic which strengthens Jordan’s contribution to regional trade and economic integration with its neighbours. • Support competitiveness and development of Aqaba port.

Project Structure Infra. Co INFRASTRUCTUR ENTITY (PUBLIC ENTITY) Owns and finances Debt : Sovereign / commercial financing the railway infrastructure Op. Co OPERATOR (PRIVATE COMPANY) Lease Equity : State • Operates the railway services • Maintains the infrastructure Debt : Corporate/ bank financing Equity : private investors, industrial partners Project’s dual structure: • A private company that will operate and maintain the railway on a concession basis, Op. Co”. • An infrastructure entity that will finance and own the railway, “Infra Co” (known as Jordan Railway Corporation)

National Railway Network Ø Project Value: The Project’s start-up capital investment: • Infrastructure: Euro 2. 2 billion. • Rolling Stock: Euro 390 million. Ø Actions completed: • Economic, financial, and technical feasibility studies concluded. • Alignment finalized and land acquisition underway. • Compensation for private owners ongoing. • Environmental and social impact assessments conducted and approved, in line with international standards.

National Railway Network Ø Actions completed : • Lenders’ conference took place in February 2011. • Further discussions with prospective financiers in May 2011. • Project is labeled by Uf. M in December 2012

Mini Project Rail Network to Capture Phosphate Traffic

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