Market Trends of Jordan Freight And Logistics Industry
Saudi Arabia's PIF makes market-boosting investments
The Public Investment Fund, which is Saudi Arabia's sovereign wealth fund, is looking at investing in large infrastructure projects in Jordan as part of its USD 24 billion MENA investment drive.It is now looking into megaprojects in the transportation and logistics sectors, as well as the possibility of investing in Jordanian railroads.PIF plans to spend USD 24 billion in the Middle East and North Africa region to add to its portfolio of assets, which will help the economies in those areas.The sovereign fund has set up five investment firms, in addition to the Saudi Egyptian Investment Company, which it started in August.These cars will look for chances in Jordan, Bahrain, Iraq, Oman, and Sudan.
The six companies will work together to invest in important industries like infrastructure, real estate, mining, health care, financial services, food and agriculture, manufacturing, telecommunications, technology, and others. The decision is in keeping with the PIF's aim of diversifying Saudi Arabia's economy and delivering "attractive financial returns over the long term". The declaration comes after the UAE, Egypt, and Jordan agreed in May to join an industrial alliance to strengthen Arab economic integration. ADQ's USD 10 billion investment fund seeks investments in five key sectors: petrochemicals, metals, minerals, and downstream goods; textiles; medicines; and agriculture, food, and fertilizers.
Strong Road Freight Transport Segment is Driving the Market
The trucking fleet has been the most important part of Jordan's road freight logistics market.More than 55% of Jordan's trucking fleet is owned by individuals; in addition to that, a high percentage of the total number of the fleet has been in service for over the past 15 years. Even though the high travel times to haul containers from the port of Aqaba to Amman are restricting the rapid growth of the road transport segment, the fleet size has been increasing and is registering year-on-year growth rates in the country.
Jordan's highway network spans over 2,700 kilometers, linking all parts of the country, with almost 1,900 kilometers of subsidiary roads. People also think that its logistics and trade processes are very effective, especially when compared to those of its regional competitors. The Jordanian government (GoJ) has recently made it easier to clear customs, expanded the use of a (virtual) single window, and improved the infrastructure at the Port of Aqaba. This has made it much easier to cross the border and sped up the process of importing and exporting.
