Jordan Rift Valley- Logistics- Trade and Industry

Future strategies for the industrial sector aim at facilitating export-oriented industries. Four main areas in the JRV are materializing as centers for industrial activity:

• The Southern Dead Sea is already the primary location for heavy industry in the JRV. Mineral exports are extremely important for both the Israeli and Jordanian economies.
• Aqaba for heavy industry in the south near the Saudi border and light industry on the north. Industrial development in Aqaba, a natural transshipment area, will be greatly supported by the development of logistic infrastrucuture.
• Beit She'an to Irbid in the northern Jordan Valley. Beit Shean lies on the east-west corridor between Haifa and Irbid. Beit Shean already houses a number of industries. Industrial and logistic capacity will be enhanced with the expansion of the Beit She'an and development of the Jordan Valley industrial zones. Declaration of Irbid as a Qualifying Industrial Zone by the American government could catalyze joint ventures at Irbid.
• The area around the King Hussein border crossing is also slated for industrial development.
• Industrial projects included in the JRV Master Plan emphasize the need to develop logistic infrastructure for new and collaborative activity.

a. Expansion of the Beit She'an Industrial Estate

An industrial estate of 70 ha is currently operating at full capacity with a waiting list of applicants seeking space for manufacturing activity. This project calls for expansion of the Beit She'an Estate by 150 hectares, 50 of which are scheduled for development by the year 2000. The planned location is at Shluchat Tzvaim, directly off the access road to the Jordanian border crossing. This project is being promoted by the Beit She'an Municipality. Estimated cost of phase one of the project comes to $10 million.

b. The Jordan Valley Free Zone Industrial Park

This project is a joint venture between representatives of the private sector in Israel and Jordan to build an industrial park at Mashara, 8 kilometers south of the Jordan River/Sheikh Hussein border crossing in Jordan. Development will consist of an industrial park and free trade zone on 1280 thousand sq. m., the first phase of which consists of 531 thousand sq. m. The objectives of the park are to create employment opportunities and industrial enterprises in Jordan, as well as trade services and storage capacity for goods transported between the Haifa port and destinations in Jordan and points east.

The park will be parceled into lots for industries, high-tech firms, workshops, and warehouses with an emphasis on labor-intensive light industries requiring extensive work space. It will also house loading and unloading facilities for inter-modal trans-shipment. Financial and government trade services, such as Jordanian customs and border control will also be available and an infirmary, police station and fire station will be situated in the Park. Facilities for professional extension courses, meetings and conferences will also be built on the site.

Business support services, including consultant services and employee training will be provided by the park's developers.

It is estimated that implementation of the first phase of the project (250 thousand sq. m. constructed area) will continue 6 years.

a. Conversion of Agricultural Warehouses to Industrial Workshops

This project is designed to convert surplus agricultural warehouses at various locations in the northern half of the JRV into small scale workshops for industries. The chosen sites, at Safi, South Shuna and Yabbis, are large covered structures which can add up to 20,000 square meters space for manufacturing and other activities. South Shuna and Yabbis are located near the King Hussein crossing point, north of the Dead Sea. It is suggested that the first site be the South Shuna location.

While the project is located in Jordan, it will be a collaborative effort between the Jordanian and Israeli Ministries of Industry and Commerce. Israel undertook a similar project in Beit She'an, when it converted an old cotton gin into factory and warehouse facilities for small businesses.

The facilities targeted for conversion are three large grading and packaging plants at Yabbis, South Shuna and Safi. The structures are in good condition and their current combined book value stands at $6.75 million.

A summary description of the facilities is given below:

The Israeli Small Business Authority and the Ministry of Industry and Trade can provide technical assistance for this project. It is estimated that value added from this project comes to $12 million per year, based on the assumption that 2,000 jobs will be created from activities conducted on the converted site.

A prefeasibility study has been conducted. Estimated capital costs are summarized in the table below:

Item	Yabbis	South Shuna	Safi	Total
Walls	600	450	450	1,500
Utilities	400	300	300	1,000
Design	25	19	19	63
Site Improvement	20	10	10	40
Office Equipment	40	30	30	100
Total Conversion
Technical Assistance	100	100	100	300
Total Project Cost	1,185	909	909	3,003

Source: Harza Group, Integrated Development of the Jordan Rift Valley: Prefeasibility Studies for Selected Projects, August 1997.

Estimated annual operating costs ranges between $180-200 thousand for each of the three sites. Estimated break-even rental charges come to approximately $30 per square meter, which is significantly lower than prevailing rates in Jordan.

This project aims at providing the physical infrastructure to develop small high tech industries in Jordan that harness Israeli know-how and utilize skilled Jordanian labor. A high-tech "incubator", specializing in electronics (assembly and testing), software development and specialist sub-contract work is being planned for the South Shuna area. It will provide low-cost facilities, economic counseling, management assistance and centralized business services for small scale start-up enterprises.

The project will be initiated by either the Jordanian Investment Promotion Office or the Industrial Development Bank in Jordan with assistance Israel's Ministry of Industry. Funding is required for building facilities and technical assistance. The total scope of funding is estimated at $2.5 million.