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National Railway Network In Jordan. Existing Rail Network. Abiad. Hassa. Shidiya. Legend. Hejaz Railway. Aqaba Railway Corporation. Phosphate Mines. Existing Railway Network. The Old Hejaz R ailway which connects Syria to Saudi Arabia.
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Existing Rail Network Abiad Hassa Shidiya Legend Hejaz Railway Aqaba Railway Corporation Phosphate Mines Existing Railway Network • The Old Hejaz Railway which connects Syria to Saudi Arabia. • The more recent Aqaba Railway (ARC) connects Jordan phosphate mines to the port of Aqaba. (trucking of phosphate is required from Shidyia Phosphate mineto the rail terminal at Aqaba Hejaz ). • ARC will be part of the concession perimeter to ensure seamless transfer of traffic and cost synergies.
National Railway Network • Jordan will be developing a 897km-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 EconomicBenefits • Contribute to growth in the Jordanian economy : • Construction period:1.4% (about 10,000) increase in FTE jobs (Full-time equivalent), 3% increase In GDP. • 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 itsneighbours. • Support competitiveness and development of Aqaba port.
Project Structure Infra .Co Op .Co 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) OPERATOR (PRIVATE COMPANY) • Operates the railway services • Maintains the infrastructure Debt :Sovereign / commercial financing Equity :State Debt : Corporate/ bank financing Equity : private investors, industrial partners INFRASTRUCTUR ENTITY (PUBLIC ENTITY) Owns andfinances the railway infrastructure Lease
National Railway Network • Project Value: • The Project’s start-up capital investment: • Infrastructure: Euro 2.2 billion. • Rolling Stock: Euro 390 million. • 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 • Actions completed : • Lenders’ conference took place in February 2011. • Further discussions with prospective financiers in May 2011. • Project is labeled by UfM in December 2012
Mini Project Rail Network to Capture Phosphate Traffic
Thank You • www.mot.gov.jo