Tartus port finds new lease of life as Syria reopens for business

Lifting of sanctions sparks buzz of activity, along with questions over future of nearby Russian naval base

Lorries shuttle back and forth as cargo ships unload their wares at the port of Tartus on Syria's Mediterranean coast: the scene was unthinkable only months ago as Syria remained a pariah in international business. Now, the quayside is a hive of activity as foreign firms seek opportunities after the fall of Bashar Al Assad.

The city of Tartus is home to Syria's second-largest seaport, a strategic hub on international transit routes through the Mediterranean Sea. But the port fell into disuse under the Assad regime due to western sanctions on Syria and high customs fees.

During a recent visit, workers told The National the port had previously been so neglected that they could not even find basic supplies such as stationery. Now, they say they are working non-stop to repair machinery, as business booms.

Ayman Hamawiye, president of the Syrian government's Investment Authority, told The National: “The port almost came to a halt due to the sanctions: international shipping companies didn’t dare deal with Syrian ports, except for a few companies that weren’t very significant – those tied to or complicit with the former regime.”

Activity began to gather pace again after former president Mr Al Assad was toppled by rebels in December. Under the long-time dictator, Syria was left largely isolated from the international economy as the regime fought a 13-year civil war.

The game-changer for the economy since the change of power were announcements by the US and EU that they would lift the sanctions imposed during Mr Al Assad's presidency.

Tartus port, where business is now booming. AFP

The move has reignited the appetite of overseas businesses, with the Investment Authority reporting it has received hundreds of letters in recent weeks expressing interest.

“There’s now a real need to develop the ports – not just Tartus but also Latakia, along with the dry ports – because transit traffic, commercial activity and overall movement are expected to dramatically increase,“ Mr Hamawiye said.

Early this month, Syria renewed a deal with French shipping giant CMA CGM to develop and operate Tartus for another 30 years. DP World, the Dubai-based port operator, signed an agreement for a multipurpose terminal at the port worth $800 million. The Emirati company was selected from several international firms that sent proposals.

“This is one of the most important deals signed since the announcement of the lifting of western sanctions,” Mr Hamawiye said. While the deal is so far non-binding, he said there was no doubt it will be implemented.

Under the Assad regime, the port was run by a Russian company, STG Stroytransgaz, which was granted a 49-year lease in 2019. In January this year, the new authorities cancelled the contract in a sign of Russia's waning influence in Syria. Moscow was a primary backer of Mr Al Assad.

All revenue from the port now goes to the Syrian state, said Riad Joudi, head of customs for the wider Tartous governorate.

The Tartus seaport also houses Russia’s only overseas naval base, which serves as a repair and replenishment point for the Russian navy in the Mediterranean.

The cancellation of Russia's port management deal is not related to the military facility. However, it has cast doubt on the base's future amid signs that Moscow's sway is fading.

Port employees told The National the naval base has been largely emptied out since Mr Al Assad was deposed. Satellite images show most military equipment has been withdrawn.

In addition to the Tartus base, Russia also maintains an airbase at Hmeimim in Latakia governorate.

After the fall of the Assad regime, The National reported that communication was taking place between Russia and the new Syrian authorities, with Moscow hoping to maintain its military presence.