Logistics

Jordan’s transportation and logistics sector plays a key role in Jordan’s economy and contributes to over 8.2% of GDP. It is growing at an annual rate of 6% and employs nearly 7.6% of the Jordanian labor force, resulting in around 126,000 jobs. A total of 325 licensed transportation and logistics companies are currently operating in Jordan.⁽¹⁾

Jordan’s transportation and logistics sector benefits from a number of competitive advantages. Proximity to the regional feeder markets, major air hubs, and the high volume cargo destinations within the Gulf is one of Jordan’s key competitive advantages.

The Long-Term National Transport Strategy Project ⁽²⁾

In 2012, the Ministry of Transport launched a medium-term national strategy, which seeks to modernize and upgrade the sector. In parallel, the Ministry initiated the Long-Term National Transport Strategy Project, which aims to integrate all transport subsectors, i.e. land, maritime, air, and rail through a long term transport strategy running until 2030. A long-term strategy was drafted in 2014 and focuses on five policy pillars: completing the existing networks and optimizing the usage of these transport facilities; promoting private participation; heightening environmental protection; focusing on the regional transport dimension; and focusing on the participation of citizens. The second phase, which is expected to be completed in 2016, will provide a new model for the passenger and goods transportation sector.

For more information on the Long-Term National Transport Strategy Project, please visit http://mot.gov.jo/Pages/viewpage.aspx?pageID=59

Air transport ⁽³⁾

Jordanian air transport quality and connectivity ranks as one of the best in the region. This is packed up by its three major airports of which two are located in Amman and one in Aqaba. Jordan's main airport is the Queen Alia International Airport (QAIA) near Amman, which won the 2014 Airport Council International Awards for the best and most improved airport in the MENA region, handling the majority of all passengers (over 7.9 million in 2017) with routes to over 45 international destinations. QAIA was recently expanded to ultimately reach an annual capacity of 12 million passengers.

King Hussein International Airport (KHIA) is a key point-of-entry serving the Aqaba Special Economic Zone (ASEZ) and its multi-modal transportation network, contributing to Aqaba’s tourism sector and playing a major role in turning the ASEZ into a logistics and transport hub. KHIA is a 24-hour, all-weather airport and has been declared an “open skies” facility with landing rights that are not restricted by conventional bilateral agreements.

Railway network and the National Rail Network Project ⁽⁴⁾

Jordan’s highway network covers more than 2,700 km, connecting all corners of the Kingdom, together with nearly 1,900 km of secondary roads. In addition, the Jordanian Government introduced the National Rail Network Project, which aims to improve its railway infrastructure by developing a rail network linking Jordan to Saudi Arabia, Syria, Turkey, and some European countries through a North-South route and a West-East route. Construction of the network is still underway with the aim to build a 900 km long rail track with three main routes. One will go from the Syrian border to Aqaba. The second and third will go from Irbid through Mafraq and Zarqa and split into two routes; one to the Iraqi border and the other the Saudi border through Al-Azraq

Maritime transport ⁽⁵⁾

Aqaba’s port currently features 22 specialized berths and container handling facilities, facilitating general cargo of a wide variety of goods such as grain, liquid oil, chemicals, phosphate, potash, crude oil, and refined oil products. The Aqaba Development Company (ADC), the ASEZ’s master developer, is mandated by the Aqaba Special Economic Zone Authority (ASEZA) through a main development agreement to continuously further develop and improve the efficiency, capacity, and the operational performance of all terminals in Aqaba’s port.

Current transportation projects with investment opportunities

• Aqaba-Ma’an Land Port: The project is part of the initiative that aims to connect main cargo distribution facilities in Jordan through a railway network to ensure swift and efficient movement of containers traffic to and from the Aqaba Special Economic Zone. The new port will be connected with Aqaba’s ports through the Aqaba Railway and the existing road network. The new dry port will include yards, administration buildings, and services.
• Aqaba Dry Port: offering an opportunity for Jordan to provide ship repair services to small/medium ships of up to 5,000 tons. Moreover, the Aqaba Dry Dock Project is an attractive investment proposition for companies offering services to large commercial ships, passenger vessels, tugs and barges, marine construction vessels, and mega yachts.
• Tram in Irbid: connecting the Amman Terminal in Irbid (northern Jordan), the Jordan University of Science and Technology, and King Abdullah University Hospital. The project will be an 18-hour service time with 6 trams per hour
• The Aqaba Railway: this network is part of the newly proposed multimodal Red Sea-Black Sea “land bridge” transport corridor, denotes a clear commitment of integrating Jordan within the region, not only by road transport, but also by railway connections.

^{(1) Sector Profile: Transportation and Logistics, issued by Jordanian Investment Commission (JIC)}

^{(2) Ministry of Transport}

^{(3) Sector Profile: Transportation and Logistics, issued by Jordanian Investment Commission (JIC)}

^{(4) Sector Profile: Transportation and Logistics, issued by Jordanian Investment Commission (JIC)}

^{(5) Sector Profile: Transportation and Logistics, issued by Jordanian Investment Commission (JIC)}