War, transport and supply chains: Navigating a volatile region in flux

The war in Iran is reshaping logistics. How are routes changing? How are companies adapting? What is the outlook for newly evolving routes? We tackled these pressing questions and much more during our webinar.

Attacks, blockades, threats, sanctions and border issues are just a few of the daily challenges facing transport operations.

Logistics operators and shippers must navigate this constantly changing dynamic to keep services and supply chains moving.

Our webinar explored how the situation is evolving on the ground.

Cooperation is key

The discussion kicked off with Hasan Boz, Deputy Director General at Türkiye's Ministry of Transport and Infrastructure, who provided an overview of the regional routes that have emerged in recent years due to the pandemic, the war in Ukraine, and now the war in Iran.

Transit via Türkiye has increased by 60% in recent years, with infrastructure developed in parallel to meet demand. Goods are now transiting via Jordan, Iraq and Syria before heading towards Europe via Türkiye.

His central message, however, was the importance of cooperation in overcoming challenges.

"When we work together, when we cooperate, when we develop our operations, these problems can easily be solved - and accessing Middle Eastern countries, especially during this period, will be very useful. Road transport has already proven to be highly effective."

The beauty of logistics

Achraf Ellili, Chief Executive Officer at Flow Progressive Logistics, headquartered in Saudi Arabia, then provided a private sector perspective.

He opened with the sobering observation that freight transport costs have quadrupled in many cases.

Achraf Ellili also noted that the war will have a permanent effect on transport routes and logistics chains - but not necessarily in a negative way. The crisis has forced alternative routes and options to be stress-tested and validated.

"Things that in the past we thought would take ages to happen did happen in the last 47 days, and that's the beauty of logistics, and that's the beauty of how all the players come together."

Opportunities ahead

Offering a broader perspective from Saudi Arabia, Hasan A. Almanasif, Executive Director at IRU member the Saudi Automobile & Touring Association, discussed how the conflict has driven a significant shift in cargo movement, with Saudi Arabia's land bridge between the ports of Dammam, King Abdullah, and Jeddah emerging as a key alternative route for international trade across the GCC.

However, he highlighted that the main challenge going forward is scaling up land transport capacity to handle the large volumes previously managed by ocean carriers.

"We are looking to onboard more transporters onto the system to meet that challenge. The opportunities in the market are significant. We need land transporters to seize them to ensure we have an adequate solution for trade to address the situation in the region."

Fully committed

Remaining with the private sector, Mortada Kareem Al-Shahmani, the Director General of IRU's Iraqi member the General Company for Land Transport (GCLT), presented Iraq's efforts to improve trade and transit, including with the TIR system.

The Supreme Transit Committee of Iraq has been working around the clock to facilitate the movement of trucks. Alternative routes have also been identified to ease congestion at border crossings, and dedicated lanes have been allocated for TIR trucks to enter and exit smoothly.

"We - with continuous coordination with IRU, the support of the government and the backing of private sector companies - will continue advancing the implementation of TIR."

Air-land bridge

Closing with the perspective of another transport company, Thampoo Kurian, Managing Director of the Aero Group of Companies, based in Qatar, discussed how the integration of TIR into Qatar's multimodal operations ensures that essential goods move quickly, securely and without interruption.

Thampoo Kurian explained how Qatar Airways cargo arriving in Doha is being transferred to sealed TIR-approved vehicles and transported to Saudi Arabia. This has led to transit times dropping by 40-50% compared to the previous system.

"We are working towards expanding to Bahrain, across the GCC, and into Jordan and Oman. This is the plan set out for us by Qatar Airways. I believe we can do an excellent job by leveraging the TIR system."