Will Iraq’s ports become a solution to the Red Sea impasse?
The Iraqi Ministry of Transport announced the readiness of Umm Qasr Port to receive increasing numbers of containers in light of the tension in the Red Sea.
The Iraqi announcement coincides with the decision of a number of international and international maritime companies and bodies to stop, suspend and change the course of their ships’ passage through the Red Sea in the wake of attacks launched by the “Houthi” group on ships that they said were heading to Israel.
Some of these companies headed to the long old route that was used by ships transporting goods, called the “Cape of Good Hope,” before the construction of the Suez Canal in 1985.
Umm Qasr preparations
The Director General of the General Company for Iraqi Ports, Farhan Al-Fartusi, stated, “The Minister of Transport, Razzaq Muhaibas Al-Saadawi, directed that the Iraqi (Umm Qasr) ports must be prepared for any real or international need to receive increasing numbers of containers after the security tension in the Red Sea and the suspension of many of the major international transport companies’ routes.” “Especially those that transport goods from Europe to the Arabian Gulf and East Asia and vice versa.”
Al-Fartusi added in a statement that “Iraq, due to its distinctive location linking the East and the West, is currently considered one of the easiest and safest transport routes, as we expect that there will be a large movement of container handling in the port of (Umm Qasr) during the coming period,” stressing that “Iraqi ports Ready to increase operations.”
He added, “Iraqi ports have actually become an important transit site for transporting goods from Europe through the Turkish port of Mersin and from there to Iraq all the way to the Gulf and East Asia, and vice versa for Chinese goods towards Europe.”
He continued, “This matter clearly shows the importance of the large (Al-Faw) port and (development road) projects that Iraq is implementing, as they have become an international demand and even an urgent necessity so that the navigation and maritime transport routes in the world are safe.”
The port of Umm Qasr, which overlooks the Arabian Gulf, is considered one of the most important Iraqi ports currently. It represents the basic spirit of the Iraqi economy and the commercial movement throughout the country. 70 percent of Iraq’s foreign trade passes through it. It contains 25 berths with a maximum capacity of 9 million tons of goods annually. It works alongside a number of Iraqi ports, but it is smaller in size. The most important of these ports currently is “Khor Al-Zubair”, which is one of the largest Iraqi ports. It was built in 1947 and consists of 13 berths, and its classification was changed to an oil port in 2021, with the exception of the sea berth. No. 9 to remain a private berth for commercial goods, import and export, in addition to “Abu Flus” port, which is one of the smallest Iraqi ports, as it consists of three berths and receives ships and small boats.
Iraq is awaiting the completion of the construction of the large “Al-Faw” port, for which the foundation stone was laid in 1921, and its three phases will end in 2038, with a design capacity of 99 million tons annually, while its first phase is expected to be completed in 2025, and the port aims to be a crossing point for goods coming from Asia to Europe is to transport the goods, after unloading them at the port’s docks, via a land route within Iraqi territory for a distance of 1,200 kilometers, after which they will enter Turkish territory and then to Europe after the goods arrive at the port on a route called the “Development Road.”
According to what the Iraqi government announced, the expected “development road” includes the construction of high-speed trains to transport goods at a speed of 140 kilometers per hour, in addition to a land road designated for trucks. The total cost of the project is estimated at 17 billion dollars.
An early step
Some economic specialists view the Iraqi move to receive international shipments heading towards Europe as “early,” given the inability of the current Iraqi ports to receive the huge number of international shipments.
Professor of Economics at Al-Maqal University, Nabil Al-Marsoumi, says that Iraqi ports meet the local needs for importing goods and cannot turn into a crossing point towards the countries of the world except with the completion of Al-Faw Port in its three stages. Then, it is possible for Iraq to become one of the tributaries that receive ships and containers that It was heading to Europe via the Red Sea.
He pointed out that there is a problem in two major canals in the world, namely the “Panama” Canal due to the decrease in water levels in it after climate fluctuations, in addition to the paralysis in the Suez Canal due to the diversion of sea cruises from the Red Sea to the “Cape of Good Hope” despite its high cost. Because of the long shipping route and the cost of fuel.
Al-Marsoumi concluded by saying that Iraq will be most affected if the Bab al-Mandab road is closed permanently, as the process of diverting routes for Iraqi oil shipments from the Red Sea to the “Cape of Good Hope” towards Europe and America will lead to Iraq bearing additional transportation costs.
Most ships heading from Europe to Asia use the Suez Canal route, as the number of ships crossing the canal is estimated at more than 23 thousand ships, approximately 1.4 billion tons, according to statistics from the Canal Authority in 2022.
Part of trade
As for the economic specialist, Safwan Qusay, he sees the possibility of Iraqi ports absorbing part of the global trade passing through Bab al-Mandab with the development of Iraqi railways and highways.
Qusay added, “20 percent of global goods pass through the Suez Canal, and Iraqi ports cannot accommodate this number, but the ports of the Gulf and Iran can be an alternative,” noting that the high cost of transporting goods leads to additional financial burdens, in addition to the costs. Insurance under which the prices of goods that eventually reach the consumer will increase.
He pointed out that in the medium and long term, the volume of trade between Asia and Europe will increase, allowing the movement of goods through Iraqi territory after the completion of the “development road,” explaining that the Arab countries will be among the countries affected by the targeting of these ships due to high costs, because we import most things, although What he said.
He pointed out the possibility that Iraq could accommodate a portion of global trade if it took advantage of the currently existing transportation methods of trains and land roads. The port of Umm Qasr could accommodate a portion of these containers.
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