Jordan's only Red Sea seaport, Aqaba, has developed into a major center for goods heading into Iraq, with major cities like Baghdad and Basra receiving goods delivered by land from the port through Jordan and into Iraq. Since the conflict started on February 28 and the obstruction of shipping via the Strait of Hormuz, Iraq has shifted to alternate economic routes, making the Port of Aqaba critical. The port stayed fully operational while much of the region faced disruption; all vessels scheduled for March arrived on time, with more than 70,000 TEUs handled across 46 container ships as flows of wheat, food, oil products, gas, and transit cargo continued.
The new LNG port development project in Aqaba is expected to be completed by the end of 2026. The $125 million project includes the construction of an onshore regasification unit (ORU) with a capacity of up to 700 million cubic feet per day, and the replacement of the current floating storage and regasification unit (FSRU) with a new floating storage unit (FSU). The project is expected to be completed within 22 months and to enter service in September 2026. This LNG terminal represents a significant step forward for Jordan, enabling it to diversify its sources of natural gas supply and access a wider range of international suppliers, reducing supply risks and improving national energy security.
The port boasts 12 cargo and container stations, six main logistics and storage sites with up to 2 million square meters of space, customs systems that allow pre-clearance, and transit markdowns of up to 40%. The UAE and Jordan agreed to push ahead with the $2.3 billion Aqaba railway project connecting Jordan's Aqaba port with the Al Shidiya and Ghor es-Safi mining regions; the network is expected to transport about 13 million tonnes per annum of phosphate and 2.6 million tonnes of potash. A Basra-Aqaba pipeline project envisioned to carry one million barrels per day of oil and gas from Iraq has been under discussion for decades; a second phase running from the city of Haditha to Aqaba would bring total corridor capacity to 3.25 million barrels per day.
The disruption of Hormuz, one of the most important maritime channels for commerce and energy in the world, has necessitated a broader reorganization of logistics across the area; cargo that would normally go via Gulf ports is being rerouted to Red Sea facilities or passed through nearby nations before arriving at its ultimate destinations by road. Although Red Sea access ports and overland passageways have helped alleviate shortages in the near term, observers generally see them as short-term fixes; they are less effective than conventional marine routes due to their greater prices and restricted capacity.
Note: This summary draws on Container News's publicly visible headline + subhead + opening paragraph and on sector background on Aqaba Port's energy-logistics hub transformation.
Key Takeaways:
1. Strait of Hormuz blockage elevated Aqaba Port as critical overland transit hub for Iraq, delivering goods by road to Baghdad and Basra.
2. $125 million Aqaba LNG terminal due by end-2026 will provide 700 MMcf/d capacity, enhancing Jordan's energy security and supply source diversification.
3. Port handled 70,000+ TEUs and 46 container vessels in March 2026 without disruption, demonstrating operational resilience amid regional upheaval.
4. UAE-Jordan partnership advances $2.3 billion Aqaba railway project to carry 13 mtpa phosphate and 2.6 mtpa potash from interior mines to the port.
5. Basra-Aqaba oil pipeline project under decades-long discussion; full corridor could deliver 3.25 million bpd, diversifying Iraq's export pathways.
