The value of goods transiting through Sharjah and Oman logistics corridor has jumped more than 66 per cent in the first three months of operations as shippers looks to avoid the turbulent Strait of Hormuz amid the continuing Iran war.
Goods worth Dh1.7 billion ($463.21 million) have been traded since May 17, when the corridor was launched to allow shipments to cross borders seamlessly into the Sultanate’s ports.
Launched by Sharjah Ports, Customs and Free Zones Authority with Oman Customs, the dedicated corridor reflects the success of an “integrated sea–land logistics model that supports smoother trade flows and improves supply chain efficiency”, Sharjah Customs said in a statement on Sunday.
The initiative allows importers, exporters, freight companies and logistics service providers with “more flexible and competitive logistics solutions”, it added.
With the Iran war now in its seventh month, the Strait of Hormuz, a vital global route that powers global commerce, remains effectively shut, with continued Iranian attacks on commercial shipping.
The significantly reduced flow of vessels through the narrow waterway, through which a fifth of global oil and gas passed before the conflict, has also disrupted commodities trade and upended supply chains.
To circumvent the strait, heavy goods vehicles are now used far more extensively in the UAE to collect everything from supermarket staples to industrial goods from Oman and Saudi Arabia, and send manufactured items out through Omani ports.
Lorry movements through the logistics corridor surpassed 34,000, while processed customs declarations exceeded 32,000 during the first three months of operation.
Connections
The corridor connects cargo flows between ports and logistics hubs of Sharjah and Oman via the Khatmat Malaha Border Crossing in Kalba and Al Madam Border Crossing, extending into Oman.
The connection allows businesses multiple options for moving goods, as well as shortening the end-to-end cargo journey, which also cuts cargo handling stages and improves the efficiency of logistics operations.
The interconnection links Sharjah and other UAE ports with Sohar, Duqm and Salalah ports in Oman, opening “two complementary routes for cargo according to destination and logistics requirements”, Sharjah Customs said.
“The early results recorded by the corridor during its first months of operation reflect the success of the vision underpinning the project,” Mohammed Al Raisi, director of Border Crossings and Entry Points Affairs at the Sharjah Ports, Customs and Free Zones Authority, said.
“From the outset, our goal was to offer the business community far more than a mere transit route.”
Al Raisi added that the growth in trade flows and customs transactions, coupled with new customers joining the ecosystem within a relatively short period, reflects rising demand for the integrated logistics solutions offered by the corridor.
