A new crisis threatens Suez Canal revenues..a land line to transport goods between the Emirates and Turkey

Despite the intimate relations that unite the coup regime and the Emirates, the strategy of Emirati interests that take precedence over anything, gave the UAE the freedom to jump between the poles and political forces. Months ago, the UAE entered into agreements with the Zionists to build and operate a land and sea line to transport Emirati and Gulf oil from the Emirates. To Israel via Saudi Arabia, by constructing pipelines to reach Israel and then transferring it via the Ashdod-Ashkelon railway on the Mediterranean, depriving the Suez Canal of about 60% of its revenues from transporting Gulf oil to Europe.

Last November 15, Turkey and the UAE signed an agreement on a land shipping route to transport goods away from the Suez Canal, in light of a record rise in Abu Dhabi’s investments in Ankara.

The Turkish-Emirati relations had witnessed a significant improvement in recent months after a rupture that lasted more than eight years. The visit of the Emirati National Security Adviser Tahnoun bin Zayed to Ankara on August 18 last, as the beginning of a new phase of relations between the two countries, where he met with Turkish President Recep Tayyip Erdogan, He discussed with him regional issues and Emirati investments in Turkey.

This was followed by Mohammed bin Zayed’s visit to Turkey and his meeting with Turkish President Recep Erdogan last week.

This confirms that the scene has completely changed, as the comprehensive political and economic estrangement between the two countries turned into close cooperation that was directly reflected in economic investments in various sectors.

new road lane

Ankara signed two separate agreements with Abu Dhabi and Islamabad, regarding the inauguration of a new shipping route to transport goods, and Ankara activated the TIR Agreement with the UAE and Pakistan, which will provide time and cost advantages for exporting companies, especially in light of the crisis. Containers and sea freight prices rise after the Corona pandemic.

According to the Emirati website, Erm News, officials of the Turkish Ministry of Trade discussed with Emirati officials during the field visits, and provided the necessary support to the transport company that will transport the first shipments by land, especially in the absence of a bilateral agreement for land freight between Turkey and the UAE, but the signing between The ministries of transport in the two countries will contribute to the development of the new route.

The route of the new shipping line includes transporting containers loaded with goods from the port of Sharjah in the Emirates to the port of Bandar Abbas in Iran, and from it they are transported by land to the Gurbulak crossing, the border gate of Turkey with Iran.

From the border crossing, the goods are transported to the Turkish city of Iskenderun. In addition, the first transport of goods by land between Tehran and Islamabad, via Istanbul, was conducted last October, within the framework of the International Road Transport Book Agreement.

In early August, the UAE Phoenix Scooter Company acquired the leading Turkish company “Palm” in the field of light transport (electric scooters) for 43 million Turkish liras (about $5 million), in what is considered the latest Emirati investment in Turkey.

Returning to the new land line for transporting goods between the UAE and Turkey, passing through Iran and reaching Pakistan and other countries in Asia and Europe, we find that the shipping route from Sharjah to Mersin, Turkey, which uses the Suez Canal crossing, takes 20 days, while the new route takes from 6 to 8 days, in addition to the sea freight from Pakistan that used to take a month, now it takes 10 to 12 days by land.

And the exploratory journey of the new route has already started from Ras Al Khaimah city in the UAE, where commodities including aluminum and silica were acquired, and the shipments were transferred from Sharjah Port in the UAE to Bandar Abbas Port in Iran by sea freight in the Arabian Gulf, and then, the delivery of Shipments sent to Turkey through the Gurbulak border gate and from there to the Turkish city of Iskenderun.

Suez Canal bleeding

This new land route will, of course, affect the Suez Canal, which represents one of the most important sources of Egyptian national income from foreign exchange, although the extent of this impact is still undetermined, in light of the start of work on the new land shipping line between the UAE and Turkey only a few days ago.

The crisis of the Evergeven ship, which ran aground in the Suez Canal, and disrupted navigation for a week in late March, has sparked many conversations about the efforts of some countries in the region to find alternatives to the Egyptian sea lane.

As the Suez Canal, which separates Africa from the Middle East and Asia, is one of the busiest trade routes in the world, and about 12% of all global trade passes through it, and in addition to transporting oil, sea freight is mostly used to transport consumer goods such as clothing, furniture and components Manufacturing and auto parts.

According to data from Lloyd’s List, a shipping specialist, westbound traffic through the canal is estimated at about $5.1 billion per day, and eastbound traffic at about $4.5 billion per day.

With the activation of the new land navigation line between the UAE and Turkey, the Suez Canal loses a large part of its revenues, which are bleeding in light of the many alternative routes that appear day after day.

Which also reveals the extent of Emirati blackmail against Egypt and its quest to maximize its profits in the region at the expense of Egypt, which is being dwarfed day after day, whether by raising problems for it in the water, energy and navigation files, and despite that, Sisi insists on complying with the UAE’s agenda in the region.

Source: بوابة الحرية والعدالة by fj-p.com.

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