Author: Mehrdad Salehi, Qom, Iran 🇮🇷, Persian wa.me/989121534279
Introduction
Maersk, the largest shipping company, has launched a new service called "Shaheen Express," which operates weekly and regularly between India and the UAE, the UAE and Saudi Arabia, and vice versa.
This service was launched in late November 2022 to expand new capacities after the COVID-19 pandemic.
Also, in July 2023, a new route to Sohar Port was added to Shaheen Express services to provide more access to supply chains inside and outside of Oman.
Shaheen Express
Shaheen Express operates between the ports of Mundra and Pipavav in India, Sohar in Oman, Jebel Ali in the UAE, and Dammam in Saudi Arabia using two vessels with a capacity of 2800 TEU (equivalent to 20 feet units).
Maersk defines it as a stable and reliable service for the India, UAE, Oman, and Saudi Arabia corridor.
Shaheen Express has also added another corridor to its services, covering the ports of Qasim in Pakistan, Port Said and Sokhna in Egypt, and Kolkata and Jawaharlal Nehru in India.
As a result, the transit time to these ports and vice versa is reduced.
The main question is why the capacity of these vessels is low?
What is the purpose of this service?
Why were these two new routes created at this point?
Where do we stand in this system?
India
India's progress in producing electronic technology industries and its geographical location have led to the formation of a powerful market that requires fast logistics services.
Moreover, India is also referred to as an alternative origin to China and Korea.
India, as a vast developing country with the fifth-largest economy in the world, derives 55% of its value-added from commercial services and trade.
From another perspective, India, with a population of over 1.4 billion, is highly conducive to forming a market with various levels of needs and different grades of goods.
Looking at India from another aspect, its vast geographical and strategic location enables access to the Far East and the Pacific Ocean.
With important commercial ports in its east and west, India can offer a variety of services.
The ports of Nhava Sheva and Mundra in the west and the port of Chennai-Kolkata in the east transform the potential capacities of this country into a reality.
Oman
The economy of Oman, like many other countries in the Gulf region, is heavily reliant on oil and gas, accounting for 13% of the country's Gross Domestic Product (GDP).
However, the uncertain conditions surrounding the country's oil and gas reserves have prompted Omani officials to focus on promoting production and exports.
In the past decade, the country's trade relations with the UAE have doubled.
Agricultural and industrial production makes up about 1% of Oman's market and total economic resources, with products such as dates, legumes, and lemons being predominant.
Furthermore, this country also has valuable mineral resources to offer.
UAE
The Persian Gulf is generally considered a vital transit route.
The UAE, located at the Strait of Hormuz, plays a crucial role in logistics and transportation as a regional hub.
Jebel Ali Port is the world's largest non-natural port, alongside other ports like Sharjah, Fujairah, etc.
Many Iranian goods are re-exported to other countries through these ports.
Jebel Ali Port offers diverse services, which will be elaborated on in the analytical discussion at the end of the article.
Saudi Arabia
Saudi Arabia stands out as one of the most important and strategic countries due to its access to the Persian Gulf, Red Sea, and the Gulf of Suez.
Jeddah Port on the Red Sea and Dammam Port in the Persian Gulf are the most famous ports guiding the logistics duties of this country.
Maritime Service
Maersk has allocated two ships with a capacity of 2800 TEU to meet the needs of the region by establishing this maritime route.
This fast maritime service essentially serves as a commercial corridor between India, Oman, the UAE, and Saudi Arabia.
Its goal is not only the transportation of goods but more importantly, it aims to meet the market needs of these countries and supply perishable goods or items being sent to farther destinations.
Cargo Transshipment
Cargo transshipment is considered one of the efficient facilities at Jebel Ali Port for managing costs and container ship capacity.
On the other hand, this port is the most important port in the region, equipped with powerful infrastructure and high capabilities for various operations.
With this new maritime service, countries like India and Saudi Arabia can effortlessly transport goods to Jebel Ali without worries, planning precisely for goods that require quick transportation or transshipment and are not directly sent.
The second route, Shaheen Express, starting from Kolkata and ending in Egypt, connects to the first route at Sohar Port in Oman.
In other words, it covers a broad market from the east of India to the Persian Gulf region and ultimately to Egypt.
Conclusion
Bandar Abbas has been positioned as the most important container port in the country near Jebel Ali.
With the established connections between Saudi Arabia and India, a great opportunity has arisen for our country's suppliers to easily send cargo to their desired destinations weekly by contracting for fast transportation.
New opportunities are constantly emerging around us, and we must make the utmost use of these capacities and opportunities.
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