APPROVED : $858M Land-Bridge project to Eilat

Based on a cost benefit analysis carried out by the American Mercator Transportation Group the Ministries of Finance and Transportation accepted, in principle, the setting up of a $858m land-bridge project that will, when completed, connect the Mediteranean sea with the Red Sea city of Eilat by rail.

 
The idea behind the project is the creation of rail connection between the Red Sea to the port of Ashdod for the movement of freight containers from the Far East to Europe and from the port of Eilat to inland destinations in Israel. The project could, according to the ministries, be carried out as a joint venture between Israel and the Kingdom of Jordan, enabling freight to be transported between the Jordanian Red Sea port of Aqaba and Ashdod. 
 
The project will create a competing transportation route to the Egyptian Suez Canal and in addition will push towards a rapid development of the southern regions of Israel. The proposed rail connection will, according to the project directors, move, in addition to freight, passengers thus bring the southern regions closer to the heavily populated center.
 
The new project will act as an economic driving force contributing to the rapid economic development of the southern desert areas in general and the Dead Sea region in particular.

The project stipulates that initial investment will be, as follows :

Out of the total investment of $858m, $561m will be devoted to freight and $297m to passengers.
 
According to the study, there is a potential to set up the project as a joint venture between Israel and Jordan. Such a joint venture will create “new activities”  which will have positive influences on the project as a whole mainly by increasing demands for rail services to and from the red sea region.
 
The demand estimation is as follows: