Transport and logistics to Jordan
(Last updated: 24 Aug 2011)
Trends and opportunities
The market
Jordan’s infrastructure supports local, regional and international business growth with features including:
- A national carrier (Royal Jordanian), serving 55 destinations directly and 700 in conjunction with alliance partners.
- A deep-water port in Aqaba offering facilities for general, containerised and specialised cargo.
- A deregulated telecommunications market with a mobile penetration rate of 78 per cent and 100 per cent Internet access following significant growth of broadband and wireless networks.
- Skilled labour
Airports
Queen Alia International Airport (QAIA) in Amman is undergoing a A$768 million expansion project that commenced in 2008 and is scheduled for completion in Q1 2012. A build-operate-transfer (BOT) contract was awarded to an international consortium led by ‘Aéroports de Paris’ management. After the completion of the project, the capacity of the airport will expand from three million passengers to nine million. A second phase of expansion, dependent on passenger demand, would see the terminal accommodate 12 million passengers a year. Royal Jordanian, the national carrier, recently made a multi-million dollar investment in the upgrade of the cargo terminal at QAIA, which will see a significant increase in cargo capacity.
There is also significant construction at King Hussein International Airport (KHIA) in Aqaba with A$16.4 million invested in upgrades. National Air Services of Kuwait has won a tender to equip, operate, and transfer the airport for 15 years. The cargo terminal serves as a sea-air link to Iraq and the rest of the region.
Ports
Jordan has a single sea outlet on the Gulf of Aqaba (Red Sea). Currently, the port is divided into three major areas under the government-owned Ports Corporation. A project to transform the port into a world-class business hub has commenced with A$3,3 billion investment required to relocate the main port area, develop a commercial precinct and construction of a general cargo terminal. The project’s first phase, which is scheduled to conclude by 2014, will include infrastructure works and services for around 300,000sqm of the project. It will also include 263 residential apartments and 151 semi-villas, in addition to the Sheikh Zayed Mosque. The overall project is expected to be finished in 2020.
Rail
The Jordanian government has prepared a railway master plan to build a new standard-gauge rail network. The existing railway network in Jordan consists of 620km of narrow-gauge tracks. The Jordan Hejaz Railway features 217km of operational lines and 111km of abandoned lines. It runs two passenger trains per week between Amman and Damascus, and freight trains on demand. Aqaba Railway Corporation manages 293km of operational lines, transporting around three million tonnes of phosphate from mines in central Jordan to the Aqaba Port.
A light railway project in Amman linking central Amman to Zarqa was announced in 2010 with tenders called for the civil engineering and electro-mechanical works. The International Funding Corporation (IFC) prepared the initial designs and the consultant, Dar Al Handasa was planning to proceed with the project. The project is currently on hold with the government studying a project amendment. It is possible that an alternative design (and consultant) could be used and this could require the retendering of the project.
Market drivers
Security and political stability – Jordan has good relations with all its neighbours. It has maintained continuous stability, moderation and security in a region prone to volatility. Jordan is a fourth generation monarchy with consistent and continuous foreign and internal policies, a democratically elected Parliament and a visionary leader dedicated to progressive reforms of political, economic, fiscal, legal and social significance.
Strategic position – Jordan is well situated as a regional entry point, being well connected to neighbouring countries and global markets through modern transportation and communication networks. Jordan’s location allows for diversification and expansion into increasingly affluent markets. Trade agreements give Jordan access to markets of more than one billion consumers.
Skilled workforce – From executives to skilled labourers, Jordan is educating for the 21st century. Many Jordanian engineers and professionals are working in the GCC and internationally. Local labour costs remain the most competitive in the Middle East.
Favourable business environment – Jordan is a free market oriented economy, with outward-oriented economic policies and a private sector-led approach. Jordan has experienced ongoing privatisation of major state-owned enterprises and implemented significant advances in structural and legal reform.
Opportunities
Services opportunities
Construction, project management and specialist sub-contracting, specialist services to sectors of power, light, passenger and freight rail, roads and ports, transport and logistics, water and wastewater management, green building, facility management and renewable energy.
Product opportunities
Products for water management, water saving and wastewater management, a wide variety of building materials and products including sustainable solutions, systems for rail and ports, building automation, air-conditioning and security, solar and wind solutions and swimming pool equipment.
What makes Jordan an attractive place to do business?
- Well-educated, professional and highly skilled labour force.
- An economy driven by regional and international investment, youthful population, well-established and managed banking system, excellent infrastructure and a sophisticated business community familiar with Western practices.
- Australia's profile in Jordan is high. There is increasing recognition of Australian companies and capabilities. Several companies have opened a presence in Jordan as a regional base for the Levant and Iraq market.
- Stability and transparency.
- Modern communications infrastructure and good financial services.
- Wide use of English (as well as Arabic) in business.
- Favourable exchange regulations and import regulations.
- A free-market oriented economy, advanced judiciary and communications system, and well-regulated capital market.
Marketing your products and services
Market entry
How Austrade can help with market entry
Jordan, with its growing project portfolio and import propensity presents significant opportunities for Australian businesses in the infrastructure, building and construction industry. However, the relative challenges in qualifying partners or customers and different business culture makes it difficult for Australian companies to identify the most suitable contacts and secure appointments.
Austrade's experienced Business Development Managers are members of relevant building sector business groups. They are well connected with key business people and able to open doors on behalf of Australian companies. Austrade arranges appointment programs for companies making individual visits.
There is a big difference between the commercial laws in Jordan and Australia, which if not understood by Australian companies, can result in decisions which impede the growth of business. It is very important to understand the legal context. Austrade provides information about agency/distribution and franchise regulations and the different types of commercial entities open to Australian companies.
Austrade can also refer Australian companies to providers of professional services, such as lawyers and accountants.
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.