The idea of ​​the refrigerated storage project, which was put forward by the Ministry of Investment through its “Invest in Jordan” platform, is based on the establishment of a company concerned with managing and operating two refrigerated storage spaces in strategic locations near the main air and sea ports in Jordan.
According to the platform, cold storage facilities will be designed to store imported or exported frozen goods on an estimated area of ​​about 19,800 square meters for both areas, and the project will include buildings, facilities, equipment, and a fleet of refrigerated trucks.
The platform proposed establishing the project in the capital and Aqaba governorates, with an expected investment size of $11.5 million, and an internal rate of return of 11 percent.
According to the platform, the main storage center will be located outside Amman, near Queen Alia International Airport, while the other center will be established in the city of Aqaba in southern Jordan on an approximate area of ​​3,300 square meters, while the construction area of ​​the main center will extend to 16,500 square meters, and the two facilities will provide storage space. It has a capacity of 118,000 cubic meters with a storage capacity of about 65,000 pallets.
The project targets investors looking for refrigerated storage spaces, packaging services, and logistical transportation services for frozen goods. Benefit from all forms of transportation services and the main international border points to and from the Kingdom will be maximized.
The platform indicated that, at the present time, there are no Jordanian companies that provide a comprehensive and integrated set of services that keep pace with approved international standards at competitive prices in this field, and therefore the company will be able to distinguish its services in the market and achieve international contracts and partnerships for those looking to improve the quality and efficiency of supply chains. their own in this area.
According to the platform, the main target companies for this project are food and pharmaceutical manufacturing companies that need refrigerated storage at reasonable prices. Jordanian farmers may also wish to benefit from refrigeration services and temporary storage of their products for sale at a later time.
Storage facilities will also be divided into sections according to the type of food: wet and dry, with meat and fish kept separately from other products to prevent contamination.
The company will cover costs and generate profits by leasing storage space directly to end users, in addition to value-added services such as transportation and packaging.
It is expected that the customer base will consist of sectors: agriculture, food, beverages, and pharmaceuticals in Jordan, and over time, international importers and shipping companies may also form an essential part of the customer base.
Most of this business is expected to be cash sales, with a small percentage of sales on credit terms. Based on this information, the company can provide a comprehensive range of refrigerated storage services and cater to the growing market.
According to the platform, targeting sectors such as agriculture, pharmaceuticals, food and local beverages will enable the company to build a sustainable and diversified customer base that will support long-term business growth.
The project requires the investor to finance the construction and cover the operating costs of the facilities.
For the project to be successful, it is important to work closely with the actual users of the facilities during the design phase to understand the frequency of deliveries, packaging, value-added services required, and the annual delivery cycle. These efforts will be instrumental when choosing the pallet delivery flow and organizing the space within the facilities.
Stakeholders will need to determine the best location for the smaller collection and distribution center in Aqaba. This will help get the product into refrigerated storage quickly, reducing loss and waste, and generating more business for the facility.
Terms of contracts with major agricultural associations, pharmaceutical companies, international transporters, and manufacturers of other products should also be agreed upon during the design phase, so that demand for storage space can be channeled early on to ensure that services are provided to all beneficiaries equally and throughout the year.
It will be necessary to constantly monitor the quantities and levels of inventory, and with the increase in seasonal demand, there will be an urgent need to manage more efficient operations, to include manpower, equipment, and trucks inside and outside the facilities, in addition to hiring an efficient logistics consultant during the design phase, especially for the first or second years of operations. This will reduce the risk of occupancy of facilities without profit due to inefficient operations.
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