Aqaba settles logistics village agreement

Aqaba Development Corporation has signed an agreement with Agility and The Kawar Group for the development, management and operation of a logistics village in Jordan.

The ambitious project will receive approximately US$70 million in direct investment, according to Imad Fakhoury, chief executive officer of Aqaba Development Corporation.

"The objective behind this village is transforming the Aqaba Special Economic Zone into a complete logistical hub," he said. "The project will contribute to the national economy and enable the transportation and logistical services to compete on the regional level throughout the upcoming years."

The logistics village will be completed in two phases. The initial part of the development involves the construction of two large warehouses, the first of which will be operational by August 2009. In addition, a container freight station will be built to handle the loading and unloading of LCL containers.

The second phase involves the construction of a service centre, which will provide a variety of services for shipping and transportation companies, covering customs, agriculture, environment and other government entities, in addition to branches of banks, restaurants and testing zones.

According to the agreement, the investors will complete the ambitious project on a build, operate and transfer (BOT) basis, with Aqaba Development Corporation taking over ownership of the village after 25 years.