No More Hormuz! Multiple Middle Eastern Countries Rush to Open New International Logistics Trade Routes

Amid ongoing conflicts in the US-Iran region and no signs of improvement in the Strait of Hormuz situation, Saudi Arabia, the UAE, and Oman are launching alternative logistics corridors, port capacities, and inland transportation routes to ensure the smooth flow of critical resources.

Governments and logistics operators are transferring goods to ports outside conflict zones and strengthening seamless supply chain connections in the Gulf region through land routes, bonded transit systems, and railway networks.

Saudi Arabia Strengthens Red Sea Shipping Corridor

The Saudi Ports Authority announced on Tuesday the launch of an integrated logistics corridor plan, connecting its Red Sea ports with neighboring countries and Gulf Cooperation Council allies via inland freight routes.

This logistics corridor allows containers and general cargo originally destined for eastern provincial ports and other Gulf gateway ports to be transferred to West Coast terminals, including Jeddah Port, King Abdulaziz Port, Yanbu Commercial Port, Yanbu Industrial Port, NEOM Port, Gizan Port, and Gizan City Port (JCPDI).

Cargo unloaded at these terminals will be transported across Saudi Arabia via designated trucking lanes to destinations such as Kuwait, Bahrain, Qatar, the UAE, Oman, Iraq, Jordan, and Yemen, bypassing the Strait of Hormuz.

The Saudi Tax Authority (ZATCA) announced plans to simplify transit services at all customs ports, allowing goods to be transported through bonded transit systems via land, sea, and air within Saudi Arabia to neighboring countries and Gulf states.

Importers and exporters can benefit from deferred taxation arrangements, storing goods in bonded zones and logistics parks, providing flexible options for final clearance, reorganization, or re-export.

UAE Launches Land-Sea Intermodal Network

In the UAE, goods are being transferred to ports along the Oman Gulf coast outside the main risk zones controlled by Iran, including Fujeirah Port and Horfakkan Port.

DP World stated that emergency arrangements permit containers unloaded at East Coast ports to be transported via bonded road to Jebel Ali for final clearance.

Meanwhile, Etihad Rail will continue providing freight services through the national railway network, connecting ports, industrial zones, and inland logistics hubs.

Over the past nine days, Etihad Rail has operated more than 100 trains, transporting approximately 459,000 tons of cargo and nearly 8,000 containers. The company has also activated multiple new rail corridors, reallocating multimodal transport capacity to its East Coast ports and Al Ghaydah dry port railway terminal, with five additional trains added as extra support.

AD Ports Group stated that all ports and terminal facilities managed within its port cluster, along with related services, will continue full operations, while shipping vessels within the strait will maintain Gulf internal transportation services.

The UAE government has also collaborated with other GCC member states and the International Civil Aviation Organization (ICAO) to launch an emergency air corridor capable of handling 48 flights per hour.

Oman Establishes Alternative Entry Ports

Additionally, Oman is actively promoting its Sur, Duqm, and Salalah ports as alternative entry points for cargo into the Gulf region.

The Ministry of Transport, Communications, and Information Technology, together with the Oman Chamber of Commerce and Industry and the Royal Oman Police, has introduced measures to accelerate customs clearance and transportation processes. These include allowing empty trucks from GCC countries to enter Omani ports for loading and using electronic customs systems to expedite transit procedures.

(Source: Caixin)