Jordan Strategy Forum: Economy Insights

The Jordan Strategy Forum (JSF) is a not-for-profit organization, which represents a group of Jordanian private sector companies that are active in corporate and social responsibility (CSR) and in promoting Jordan's economic growth.

The overall objective of this effort is to analyze different sectors (14) of the Jordanian economy and their respective challenges, and come-up with practical solutions and initiatives to enhance their competitiveness.

The main activities are: Land (including rail network transport) Transport, Water Transport, Air Transport, Supporting and Auxiliary Transport Activities, and Post Activities.

<p>83,340,000 JDs</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>38%</p> Signup and view all the answers

<p>9%</p> Signup and view all the answers

<p>5-6%</p> Signup and view all the answers

<p>126,000</p> Signup and view all the answers

<p>JOD 2,301.50.</p> Signup and view all the answers

<p>12 to 23 minutes.</p> Signup and view all the answers

<p>4.5%</p> Signup and view all the answers

<p>16.4%.</p> Signup and view all the answers

<p>over 1m and 600</p> Signup and view all the answers

<p>Total cargo imports are 649056 tons and cargo exports are 417931 tons in 2021.</p> Signup and view all the answers

<p>84th/160</p> Signup and view all the answers

<p>21.4%</p> Signup and view all the answers

<p>38 hours.</p> Signup and view all the answers

<p>17 days</p> Signup and view all the answers

<p>One</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>17 years</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The primary goal is to enhance the connectivity of Jordan by accomplishing a more efficient supply chain, reduce logistics cost, and enhance Jordan's international connectedness.</p> Signup and view all the answers

<p>Mobility</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Increase the number of liberalization agreements of international public transport service. (E)</p> Signup and view all the answers

<p>JOD 150,000</p> Signup and view all the answers

<p>Developing a comprehensive plan for the development of the national railway network. (C)</p> Signup and view all the answers

<p>Review (and simplify) transport regulations to allow for mobility-as-a-service (MaaS) models of operation and integration among various types/modes of transport services.</p> Signup and view all the answers

<p>To modernize the transportation and logistics sector through the digitization of services, platforms to streamline operations and enhance communication between stakeholders in the supply chain.</p> Signup and view all the answers

<p>Ministry of Transportation</p> Signup and view all the answers

<p>Exploit Jordan's geostrategic location</p> Signup and view all the answers

The Jordan Strategy Forum (JSF) is a non-profit organization advocating for corporate and social responsibility (CSR) and promoting Jordan's economic growth. It brings together Jordanian private sector companies and public sector decision-makers to discuss and solve economic and social challenges faced by Jordanian citizens.

The report is based on discussions and focus group meetings organized by the JSF. It aims to analyze different sectors of the Jordanian economy, identify challenges, and propose practical solutions to enhance competitiveness.

The report analyzes the transportation & logistics sector and its role in Jordan's economic growth, highlighting the key challenges and opportunities. It proposes initiatives for enhancing competitiveness and sustainability.

Jordan is strategically located between the Levant and the GCC, making it a potential regional transport hub. The report highlights the opportunity for enhancing the sector's competitiveness through improved infrastructure, efficient logistics, and modern technologies.

The Ministry of Transport is focusing on improving mobility within cities and regions through projects like King Hussein International Airport, Ma'an Dry Port, and the Amman-Zarqa Bus Rapid Transit (BRT).

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

Greater Amman Municipality (GAM) is implementing modern public transport systems like the Amman Bus project and the Amman Bus Rapid Transit (BRT) to improve public transportation in the capital.

In recent years, Jordan has liberalized its transportation sector, allowing private operators and investors to participate and contribute to market growth. The road network has seen significant investments as well.

The transportation sector contributes significantly to Jordan's economic growth, generating about 126,000 jobs and accounting for more than 9% of Jordan's GDP. The demand for transportation and logistics is expected to grow by 5-6% annually until 2030.

The report lists the main activities of the transportation and logistics sector, including land transport, water transport, air transport, supporting and auxiliary activities, and post activities.

Despite the positive growth, challenges remain in the sector, including infrastructure inadequacies, congestion, reliability and safety concerns, and an inadequate response to the Syrian crisis.

The Green Growth National Action Plan highlights several issues, such as a high percentage of national emissions from the transportation sector, a lack of public transit services, a significant number of road accidents, and high household transportation expenditures.

Jordan ranked 84th out of 160 countries in the Logistics Performance Index (LPI) in 2018. The report notes that the LPI for Jordan has fluctuated over the years, and while procedures for importing and exporting are relatively efficient, there is room for improvement.

Queen Alia International Airport (QAIA) in Amman is recognized as a leading airport in the region, receiving awards for its service quality and customer communication efforts.

The logistics sector has faced challenges in recent years, including stagnant economic development, closed trade routes, a limited domestic market, and a drop in trade due to conflicts in neighboring countries.

COVID-19 has had a significant impact on merchandise exports in Jordan, leading to a decline in 2020. The report shows the growth rate of transport services exports decreasing sharply in 2020, highlighting the pandemic's effect on the sector.

Urban planning, energy, and the environment are closely intertwined with the transportation sector. The report highlights the importance of considering these interconnections and synergistic efforts for mutual benefits.

The report highlights several strengths and weaknesses of Jordan's transportation and logistics sector, analyzing its internal and external factors. Strengths include a long-term transportation development strategy, a contribution to GDP growth, investment potential, and a skilled workforce. Weaknesses include a lack of strategy implementation, insufficient investment, inadequate infrastructure, a fragmented sector, and data collection shortcomings.

Five strategic objectives were identified for the transportation and logistics sector: enhancing industry competitiveness, increasing public transport mode share, reducing environmental impact, improving international accessibility, and ensuring a proper policy framework.

The report outlines several initiatives to achieve the strategic objectives, including implementing intelligent transportation systems, reviewing transport regulations to enable mobility-as-a-service (MaaS) models, promoting low-emission means of transportation, exploiting Jordan's strategic location, and improving the regulatory framework.

Implementing intelligent transportation systems aims to modernize the sector through digitalization of services, streamlining operations, and enhancing communication between stakeholders in the supply chain. Expected outcomes include enhanced truck utilization, streamlined border crossing procedures, reduced processing time, and development of e-commerce opportunities.

The 'Review (and simplify) transport regulations to allow for mobility-as-a-service (MaaS) models' initiative aims to expand accessibility of transportation services across Jordan by simplifying regulations and integrating various transport modes.

The 'Promote low emission means of transportation' initiative aims to encourage the use of sustainable and environmentally friendly means of transportation. It focuses on promoting electric vehicles, reviewing regulations, and providing financing for cleaner fleets.

The 'Exploit Jordan's geostrategic location' initiative aims to enhance connectivity by creating regional hubs, expanding airport infrastructure, establishing a Levant Logistics Syndicate, and developing Jordan as a tourism transport hub. Expected outcomes include enhanced tourist experiences, better utilization of vehicle fleets, improved security, and increased supply chain efficiency.

The 'Improve the regulatory framework to make it more attractive to foreign and local investors' initiative aims to make Jordan a more attractive destination for investments in transportation and logistics by improving the public-private partnership (PPP) regulatory framework and reducing investment risks.

The report emphasizes the need for three key actions to shift towards a more sustainable transportation and logistics sector: reducing travel demand, shifting towards energy-efficient transport modes, and introducing zero-emission vehicles.

The report highlights the need for greater coordination between ministries involved in transportation, energy, environment, and finance. It emphasizes the importance of strengthening public-private dialogue to fill gaps in strategies and address policy inconsistencies.

The report highlights multiple challenges impacting the sector's progress: weak incentives, excess electricity generation, inadequate public transportation, and limited private sector participation.

The report highlights the importance of considering gender needs and gaps in transportation planning. It underscores the impact of inadequate public transportation on women's labor market participation and the need for inclusive transportation systems.

The report recommends leveraging the impacts of international initiatives, avoiding duplication of efforts, and promoting synergies. It emphasizes the need for evaluating trade and transportation facilitation and improving border crossing facilities to create a more efficient logistics infrastructure.

The report stresses the need for reducing transportation times, minimizing taxes and expenses, developing inland ports, streamlining customs processes, providing employee support, and integrating IT to enhance logistics performance and become a regional transportation and logistics hub.