Aqaba Development Company: The new oil berth will add an annual handling capacity of 5 million tonnes.
اضافة اعلان
Aqaba Development Company: The new berth will support energy security and serve as a corridor for Iraqi oil exports.
Aqaba Development Company: The new oil berth in Aqaba will be capable of receiving vessels with a deadweight tonnage of up to 160,000 tonnes.
Aqaba Development Company: Preliminary studies indicate the project could generate returns of up to 24%.
Aqaba Development Company (ADC) announced that the project to construct a new berth for handling petroleum products has entered the stage of preparing detailed studies and designs, following the completion of the first phase of studies, which showed positive preliminary feasibility indicators. The project aims to strengthen Jordan’s energy supply security.
In a statement issued Monday, the company said the project's total capital cost is estimated at approximately JD 45 million, according to preliminary studies. The project is being structured under a public-private partnership (PPP) model, whereby ADC will finance the marine infrastructure component at a cost of around JD 28.2 million through self-funding, while a specialized operator will finance operational equipment valued at approximately JD 16.8 million.
ADC revealed that it has already commenced the preparation of detailed studies for the second phase in cooperation with international consultant Haskoning.
The company explained that the new berth will add approximately 5 million tonnes of annual handling capacity, easing pressure on the existing oil berth, which currently operates at a high occupancy rate ranging between 60% and 90%, with vessel waiting times reaching between 50 and 70 hours.
The berth has been designed to accommodate vessels with a deadweight tonnage of up to 160,000 tonnes and will enable the handling of a wide range of materials, including green ammonia, bitumen, petroleum products, crude oil, chemicals, oils, and heavy fuel oil.
ADC emphasized that the project will enhance Jordan’s energy security by adding a second marine berth, reducing reliance on the country's sole existing oil berth. It will also contribute to diversifying supply routes and improving the resilience of supply chains through Aqaba Port, while supporting the Iraqi oil export corridor.
Regarding the timeline, the company stated that the second phase includes detailed studies, engineering designs, and the launch of two parallel tenders. The first tender will cover the construction of the marine berth under an Engineering, Procurement, and Construction (EPC) model, while the second will offer an investment opportunity to operate the port under a Build, Operate, and Transfer (BOT) framework. Construction is expected to begin between the second and third quarters of 2027, with operations scheduled to commence in early 2029.
The company noted that the project will reduce vessel waiting times and associated demurrage costs, accelerate cargo-handling operations, create opportunities for exporting new materials, and generate additional revenues. The estimated internal rate of return (IRR) is projected to range between 14.7% and 24.1%, compared with an estimated cost of capital of 10.3%.
The Cabinet recently approved a decision by ADC’s Board of Directors to proceed with the necessary procedures and studies and begin preparing the required designs for the construction of the new petroleum products berth, in line with the outcomes of the feasibility studies conducted for the project.
The project aligns with the objectives of Jordan’s Economic Modernization Vision and the government’s efforts to enhance port operations and increase public-private sector collaboration. It is expected to accelerate cargo-handling activities and strengthen the country’s energy security framework.
Currently, Aqaba has only one berth dedicated to handling petroleum products, which is used by the Jordan Petroleum Refinery Company and private-sector storage operators. The growing demand for a complementary berth has become increasingly urgent to support the government’s efforts to enhance energy security, meet private-sector needs, and alleviate congestion at the existing facility.
Al Mamlaka
