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Analysis of Establishing a Logistics Corridor

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.

How useful is this article to you?

Average Score 5 / Number of votes: 6

Comments (22 Comments)

Saadatmand

Establishing a logistics corridor involves creating a streamlined and efficient route for the movement of goods, which can significantly enhance trade and economic growth. This process requires careful planning, including infrastructure development, regulatory alignment, and the integration of various transportation modes such as rail, road, and ports. Key considerations include cost, potential bottlenecks, geopolitical factors, and environmental impact. The corridor can reduce transportation time and costs, improve supply chain reliability, and facilitate regional connectivity. However, challenges such as funding, land acquisition, and coordination among multiple stakeholders must be addressed to ensure the corridor's success.

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Adil naeem

Hello Trade Transport corridors promote international trade by providing efficient transportation routes for the movement of goods.
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M. Abbas Mohsenian

The creating a logistics corridor. This is an important topic for businesses and governments looking to improve transportation and supply chain efficiency.

When analyzing the creation of a logistics corridor some key factors to consider include.

Infrastructure
Transportation modes - roads railways ports airports
Warehousing and distribution centers
Communication networks (fiber optic, wireless)
Utilities (power water etc.)
Intermodal connectivity between transport modes
Geographic location
Proximity to major population centers and consumer markets
Access to raw materials production facilities and suppliers
Proximity to international borders and trade routes
Regulatory environment
Customs and trade policies
Tax incentives or special economic zones
Environmental regulations
Labor laws and workforce availability
Logistics services
Freight forwarding and customs brokerage
Warehousing and inventory management
Transportation providers (trucking rail air ocean)
Supply chain visibility and optimization tools
Operational efficiency
Streamlined processes and information flows
Adoption of technologies like IoT, AI, and automation
Collaboration between logistics partners
Stakeholder engagement
Coordination between government, businesses, and community
Addressing concerns of local residents and environmental groups
The goal is to create an integrated multimodal transportation network that minimizes bottlenecks reduces delivery times, and lowers logistics costs for businesses operating within the corridor.
Careful planning investment and stakeholder alignment are crucial for developing a successful logistics corridor.

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Rahele Nateqi

Many thanks to logistics team and Mr. Salhi for this important article. even knowing the names of these ports helps you to have a more professional negotiation with your customers from different parts of the world.
Arad is here for you to become better every day🌱

t.me/aradbrandingnateqi

Popoola Daniel

With this new corridor logistics it's a good development,because logistics is one of the most vital systems in a business.But with this it's a welcome development for the supply chain which is supplying and distributing to the buyers.Hence,this new corridor system there are other methods that needs to be introduced to make a swift delivery
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Shaharbano naqvi

Thanks and gratitude to the manager of the transportation and logistics team of the large Arad company, who provides important and practical tips to everyone

t.me/banorosenaqvi

Mohsen Imam

Hello Trade Transport corridors promote international trade by providing efficient transportation routes for the movement of goods. This reduces transportation costs, transit times, and administrative burdens, thereby facilitating cross-border trade.
447700308494

Muhammad Fazeli

Appreciate mr Salehi, we learned great tips.
An important tip was about transhipment ,transshipment is a complex supply chain challenge that involves the transportation of cargo or a container from one vessel to another, while in transit to its final port of discharge. Transshipping commonly happens when the cargo can’t reach its final destination through a direct route.

t.me/Fazeli4

Marzieh Olamaei

These logistic tips are so helpful for you who are working as our merchant and agents in advertising.

You receive lots of information freely and this is a very big chance.

do not miss it and enjoy it

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hadise motlagh

Bandar Abbas is one of the key and strategic ports for Maersk in the Persian Gulf region and the Middle East. This port is especially important for Maersk and other shipping companies for various reasons. Bandar Abbas is located near the Strait of Hormuz, which is one of the most important international sea routes for transporting oil and other goods. This geographical location has made Bandar Abbas known as one of the main gateways for the entry and exit of goods to the Middle East and Central Asia.
Thanks and gratitude to the manager of the transportation and logistics team of the large Arad company, who provides important and practical tips to everyone.

t.me/hadisemotlagh

M Amir Eftekhari

Was totally fruitful! Concerning the opportunity and establishments above mentioned, every trader can take advantage of this chance and transport goods easily and efficiently

wa.me/447700312024

syed alavi

good information about import export and logistic things of bussiness

t.me/AliAlavi314

Hitesh Biswal

I think that this logistics corridor will help a great way in the expansion of the Arad Branding Company and it's representatives.
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Javad Gh.

Hello
From now on, we have to make sure that our Bandar Abbas export so many containers that the officials think about making this area a hub.
We just have to work.
One is under pressure that the emirate, which is the size of one of Iran's cities, Jebel Ali seaport, will become clean and one of the busiest ports.
Why shouldn't we have one like this.

T.me/JavadManagmentRepresentative

Azin Fakhr

Thanks to Mr. Salehi for the comprehensive and complete explanations he provided.
The issue of transportation and logistics is always one of the main concerns of traders, representatives and all the activists in this field. Because transportation always has responsibilities for the parties of a contract, and if it is not done correctly and by experts, it can cause a lot of financial and credit losses. For example, if you cannot choose the best, shortest, and safest route for your business, it is possible that the product will actually be damaged, its quality will be greatly reduced, and thousands of other problems. Or if you are not properly familiar with the rules and matters of sending cargo, it is possible that the cargo may get stuck at a point of shipment and again suffer a lot of damage. Of course, explaining these technical mistakes to customers is very difficult and almost impossible. It questions your credibility with the customer.
We are grateful and hopeful that in Arad Branding we have a team that is proficient and dedicated in transportation and logistics, so that we can get all these advices and information from these loved ones.

t.me/Azin_fakhr

فاطمة الزهراء Fatima Alzohra

Just by looking at ports, you could have an idea about the current economic situation.
And since production is increasing in the whole region and the world start changing and realizing that Trade between countries should be free and should not be affected by illogical factors, there is a high chance that new logistics corridors will be created soon and more ports added, wether by the Major global container carriers such as Maresk or the other newely emerging shipping lines.👌
Thanks
Representative of ARAD in UAE & ALGERIA 🌍

wa.me/971565307065

Joseph cole

It is a good article....
As the Shaheen Express by Maersk enhances trade efficiency across India, UAE, Oman, and Saudi Arabia, offering reliable weekly services and strategic routes that boost regional connectivity and economic opportunities.
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Malik Emmanuel

Thank for your insight information which briefly shows introduction of Maersk's Shaheen Express service marks a significant development in regional logistics, particularly beneficial for connecting key markets such as India, the UAE, Oman, and Saudi Arabia. By operating weekly with a focus on efficiency and reliability, this service not only supports the transportation of goods but also enhances trade dynamics across the region

Wa.me/254742125889

Hauwa Yakubu

this is wonderful, quite interesting, thanks so much for this 2348062245017

Rouf javed

Good

Busari Aliyu

The logistics corridor provided by Aradbranding plays a crucial role in the global market by facilitating efficient transportation and distribution of its products. This strategic infrastructure ensures timely delivery and reliability, which are essential for meeting market demands and maintaining customer satisfaction worldwide. By optimizing logistics, Aradbranding enhances supply chain efficiency, reduces costs, and supports sustainable business practices. These efforts not only strengthen its competitive edge but also contribute to the smooth functioning of international trade networks, fostering economic growth and stability on a global scale.
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Busari Aliyu

Aradbranding Company boasts the absolute pinnacle of logistics excellence, maintaining an unrivaled corridor that flawlessly delivers goods to destinations across the globe. Their logistics infrastructure sets an unprecedented standard, ensuring swift, efficient, and reliable transportation of products to every corner of the world, surpassing all competitors in the industry.
Busari Aliyu representative of aradbranding company in Nigeria WhatsApp number 2348128959020