Business

A new multi-billion-dollar route between the UAE and Turkey

The new route of billions of dollars of trade between Turkey and the United Arab Emirates will also save two-thirds of time. With the trade route that leaves the UAE and reaches the port of Iskenderun in Turkey via Iran, the shipping time has also decreased from 21 days to a week.

The coronavirus pandemic has affected the supply chain and caused a dizzying rise in shipping container prices. However, the new Turkey-UAE trade corridor is expected to be both time and cost-efficient.

According to the news of TRT World, with the trade route originating from the United Arab Emirates (UAE) and reaching the port of Iskenderun in Turkey via Iran, the shipping time has decreased from 21 days to less than a week.

The new trade route between Turkey and the UAE reduces the duration of shipments from both countries from 21 days to 6-8 days.

At the same time, as Turkey is an important logistics center in the Mediterranean and as part of its growing exports in the region, Ankara and Islamabad have also signed agreements for a similar route through Iran.

Such promising projects reduce the export cost and export time between Turkey and UAE to six to eight days and only 10-12 days for goods from Pakistan.

According to the project, shipments from the UAE’s Sharjah (Al Sharjah) port to the Iranian port, and then trucks will head to the Bazergan-Gurbulak border gate between Iran and Turkey. Turkey will thus benefit from the use of Bandar Abbas port in Iran.

TWO THIRD SAVINGS IN TIME

The first shipments made under the “TIR Carnet” from the United Arab Emirates (UAE) and Pakistan to Turkey paved the way for both time and cost savings.

The first cargo from Sharjah reached Bandar Abbas Port via the Persian Gulf. Afterwards, the cargoes entering Turkey through the Gurbulak Border Gate were delivered to Iskenderun. The journey time of the load took less than a week.

The route could facilitate trade activities in the region and save two-thirds of the time it takes for a shipment to follow the traditional sea route through the Suez Canal.

The new route contributes to the reduction of export and import costs due to lower transport and time costs.

During his last visit to the UAE, Turkish Foreign Minister Mevlut Cavusoglu said that cooperation is important for everyone, especially in trade and supply chain resources.

Cavusoglu emphasized that both countries are preparing for the land transportation agreement, which is expected to be signed during Turkish President Recep Tayyip Erdogan’s visit to Abu Dhabi next February.

Iran also welcomed the project, which provides financial and geopolitical benefits as it will benefit from the tariffs applied to the trucks passing through its territory. This move will also make a tangible contribution to the trade movement in the region by easing Iran’s isolation due to years of economic embargo.

Iran recently announced the completion of its international route to the Turkish border, opening the door to similar projects that will connect Turkey with the Arabian Gulf countries via Iraq.

COMMERCIAL SIZE

Investments from the UAE will stimulate the economy and help Turkey become an export giant.

It is expected that trade and investments will increase between the two countries, where the average annual trade reaches approximately $8 billion. The UAE is considered one of the largest Arab countries with high volumes of direct investment in Turkey.

According to data from the Turkish Ministry of Foreign Affairs, trade between the two countries was $14.8 billion in 2017, while it decreased to $7.6 billion in 2018 and $7.4 billion in 2019 due to deteriorating relations.

Source: Sabah / Translated by Irem Yildiz

Leave a Reply

Your email address will not be published.

Back to top button