Jordan Logistics Sector Report Quiz

The Jordan Strategy Forum is a non-profit organization dedicated to promoting economic growth in Jordan. It facilitates dialogue between the private and public sectors, aims to increase awareness and strengthen the future of the Jordanian economy.

The JSF aims to analyze different sectors of the Jordanian economy, identify challenges, and propose practical solutions to enhance competitiveness.

Jordan's strategic location makes it a potentially important transport hub between the Gulf Cooperation Council (GCC) countries, Turkey, and Europe, as well as Iraq, Red Sea, and the Mediterranean. This creates opportunities for growth in the transportation and logistics sector.

The Ministry of Transport (MoT) is investing in projects to enhance urban mobility, develop corridors and regional integration, ensure road maintenance and safety, and incorporate modern technologies and smart systems. Some of these projects include King Hussein International Airport, Ma'an Dry Port, Amman-Zarqa Bus Rapid Transit (BRT), and a Permanent Logistics Centre in Giza/Al Qastal Area.

The proposed National Railway Project aims to improve both domestic and regional transport connections by increasing cargo handling capacity and making transport faster, cheaper, and more competitive.

The Greater Amman Municipality (GAM) is working to modernize public transport in Amman through projects like the Amman Bus and the Amman BRT (Bus Rapid Transit). These projects aim to improve efficiency and accessibility for passengers.

The transportation sector is crucial for Jordan's economic growth, contributing about 9% of the country's GDP and employing approximately 7.2% of the workforce. The demand for transportation and logistics services is expected to increase by 5-6% annually until 2030.

The transport sector is responsible for 38% of Jordan's greenhouse gas (GHG) emissions, making it a major contributor to climate change. The sector's reliance on fossil fuels impacts air quality and contributes to pollution in urban areas.

Jordan's logistics and transportation infrastructure is a key factor in boosting the economy and accelerating economic recovery. This sector has the potential to become a major creator of growth and employment opportunities.

Jordan's road network, along with other infrastructure, has not kept pace with the increasing demand due to population growth and urbanization. Congestion, reliability, and safety issues present significant challenges that require policy frameworks and immediate action.

The Green Growth National Action Plan highlights concerns regarding the transportation sector in Jordan. For example, it reveals that 59% of the population lacks access to quality public transit services, and the sector is the second largest contributor to emissions in cities.

Jordan ranked 84th out of 160 countries in the 2018 Logistics Performance Index. This indicates the need for improvements in the logistics sector’s performance and efficiency.

While Jordan has a relatively efficient process for importing and exporting goods, the cost of compliance can be higher than in some other regional nations.

Queen Alia International Airport (QAIA) has received recognition for its quality of service and continuous efforts to maintain communication with passengers during the COVID-19 pandemic.

The logistics sector in Jordan has faced challenges including stagnant economic development, closed trade routes, and a limited domestic market, particularly as a result of wars in neighboring countries.

The COVID-19 pandemic has significantly impacted Jordan's merchandise exports, with a noticeable decrease in trade volume during this period. The transport services export growth rate also fell significantly in 2020.

The transportation sector is strongly interconnected with other sectors like urban planning, energy, and the environment. These sectors are interdependent and have mutual impacts on each other.

A SWOT analysis of the transportation and logistics sector in Jordan revealed strengths including a long-term transportation development strategy, significant GDP contribution, potential for investment, and a skilled workforce. However, challenges include a lack of implementation and monitoring of the strategy, limited investment, inefficient processes, and a fragmented sector.

The strategic objectives for the transportation and logistics sector in Jordan are to: enhance the competitiveness of the logistics industry, increase public transport mode share and accessibility, reduce the environmental impact, improve international connectivity, and ensure proper policy and regulatory frameworks.

The initiative to implement intelligent transportation systems aims to modernize the sector through digitization of services, streamline operations, and enhance communication between stakeholders in the supply chain. This includes developing platforms for tracking, payment, and data exchange.

This initiative aims to simplify regulations and allow for the introduction of Mobility-as-a-Service (MaaS) models, integrating various types of transportation services, such as buses, taxis, and ride-sharing platforms. This initiative aims to increase accessibility and provide better access to employment opportunities for people.

The "Promote low-emission means of transportation" initiative aims to encourage the use of sustainable and environmentally friendly transport options such as electric vehicles. This includes providing financing options for cleaner fleets and reviewing relevant regulations.

The "Exploit Jordan's geostrategic location" initiative aims to enhance Jordan's connectivity by developing a regional e-commerce hub in Aqaba port, expanding Queen Alia International Airport with a courier hub, and establishing the Levant Logistics Syndicate.

The "Improve the regulatory framework" initiative aims to make Jordan's regulatory environment more attractive to foreign and local investors by allowing the Public sector to share risks and improving the Public-Private Partnership (PPP) framework.

A more sustainable transportation and logistics sector requires a multi-pronged approach that includes reducing demand, shifting towards energy-efficient modes like public transport, and introducing zero-emission vehicles.

Jordan faces challenges due to uncoordinated and insufficient transportation policy and a lack of integrated strategic planning between ministries responsible for transport, energy, environment, and finance. Strengthening inter-ministerial coordination and public-private dialogue is essential to address these shortcomings.

Weak and inconsistent planning, inadequate incentives, a lack of public transportation services and infrastructure in urban areas, and the exclusion of the private sector in transport policy have hampered progress in the sector. Creating enabling conditions for private sector participation is crucial.

Both women and youth have identified the need for better public transportation as a priority, recognizing its link to job accessibility. However, the current transportation systems and plans often fail to address gender needs and inequalities.

Trade and transportation facilitation, government procedures, and processes need to be evaluated to enhance logistics performance. Border crossing facilities need improvement, with more comprehensive infrastructure including cargo stations, passenger terminals, marshalling sites, parking areas, and storage facilities.

Jordan's success in becoming a regional logistics hub requires a comprehensive approach. Some key objectives include reducing transportation times, minimizing costs, developing inland ports, streamlining documentation, providing assistance to logistics firms, and integrating information technology.