The trade route from the Emirates to Turkey via Persia and its impact on Egypt?

The trade route from the Emirates to Turkey via Persia and its impact on Egypt?

At a time once voices area unit rising exacting the cancellation of the Israeli agreement with Abu Dhabi, that is that the transport of oil. that represents a threat to Egypt’s interests, a trade line was established between the UAE and Turkey via Persia. it should additionally have an effect on the navigation movement within the ship canal, in keeping with some.

This comes at a time once Emirati-Turkish relations area unit witnessing an interesting cooperation, and several other cooperation agreements were signed for the primary time in ten years. wherever Abu Dhabi prince Mohammad bin Zayed visited national capital many days agone،  Of which, nearly $10 billion is UAE investment in Turkey.In this report, we tend to follow the foremost outstanding facts and figures concerning the ship canal compared to the new road, and that we raise specialists concerning its impact on the canal ، that is one in all the foremost vital arteries and a vital channel for the Egyptian economy.This is not the primary of its kind that poses a threat to the ship canal.

Abu Dhabi had antecedently in agreement with Tel Aviv to inaugurate a pipeline linking the Red Sea and therefore the Mediterranean to move Gulf oil to Europe, a project that was briefly suspended thanks to environmental protests in Israel.Months ago, the UAE associated Russia signed an agreement to develop a instrumentality shipping line across the Arctic on a route promoted by capital of the Russian Federation as an alternate to the ship canal ، and therefore the Egyptian Sumed Line, that additionally connects Bahrain.Although Egypt showed interest in following these comes, it didn’t follow abreast of the new product line. At a time once the region was witnessing conflicting transformations and approaches between regional powers tangled with Cairo on several problems.

Is the new trade path mirrored negatively on Egypt?

According to maritime transport skilled Hamdi Barghout, the repercussions of the printing operation on Egypt area unit painted by a negative impact. however to not an oversized extent, however in his opinion it’ll directly have an effect on Egypt’s relations with Turkey and therefore the UAE.

Barghouth doesn’t see any repercussions in Egypt, providing Arab-Turkish trade doesn’t turn up within the Emirates, and he attributes this to the subsequent factors:

Trade via the new route represents atiny low portion of the amount of trade passing through the ship canal.
Intra-Turkish trade with Egypt passes directly through the Mediterranean, not the ship canal.
Iran’s trade with Turkey doesn’t suffer Egypt, and Persia isn’t a serious industrial country.
The UAE may be a business country, not associate industrial one, and its trade depends on neighboring countries.
The new route is unlikely to have an effect on the SUMED line, that transports oil from the Red Sea port of personal Sukhna to the Mediterranean port of Sidi Kerir.

The power of the ship canal

In distinction, maritime transport authority and transport economic science and practicability studies skilled Ahmed El-Shamy unheeded the impact of the ship canal. He explained numerous reasons associated with numbers, indicators, common issues and logistic aspects, which may be summarized as follows :

1.3 billion a lot of international artifact suffer the canal annually and there’s no international passageway through that this quantity passes ، The ship canal accounts for concerning twelve-tone system of the amount of international trade ، The new trade line is comparable to it of Asian nation, Persia and Russia, with bilateral trade between the 2 countries approaching half dozen million tons annually, a cargo that passes through the ship canal in exactly three days.

Assuming it opens, it’ll be titled within Trade i.e. restricted range of trades ، There is no comparison between international trade and domestic trade, like trade through the ship canal ، The rumors concerning the passage of the new road and its current counterpart within the ship canal don’t seem to be true. The cruise from the UAE to Turkey via the ship canal doesn’t exceed twelve days ، In the event of a reverse route on the new road, 2 modes of transportation are used, one by ocean (tankers from the Emirates to Persia) and therefore the alternative by land (trucks from Iran to Turkey).

The smallest instrumentality carrier operative on a global route presently has one,200 containers. once comparison the multilane passage, loading, handling and unloading takes place once within the ship canal, whereas transporting a similar instrumentality by land needs one,200 trucks to load and unload.
The land transit passageway between the 2 countries are with strict security measures ، Based on the preceding, the prices of stevedoring and trade time on the new route area unit abundant on top of for transiting a similar trade through the ship canal.

How will Egypt face plans to launch different corridors?

According to maritime shipping skilled Hamdi Barghouth, he aforesaid Egypt ought to notice logistic alternatives like gap associate industrial zone within the economic canal space and attracting sectors and creating them appropriate for international competition ، Its success is connected to the involvement of alternative regional competitors from countries which will suffer from the presence of major comes within the Canal region and to push them to fight the Egyptian comes.

Maritime transport authority and transport economic science and practicability studies skilled Ahmed Al-Shamy cites the subsequent points during this regard ، The ship canal aims to extend international trade through it from twelve-tone system to eighteen by 2030 so to thirty fifth by 2050 ، The new project may be a manifestation of an endeavor to extend the carrying capability of the canal ، It is planned to open associate nearly long japanese shipping line (between the Red Sea and therefore the Mediterranean within the Gulf of Aqaba), passing through Taba and Al-Arish within the Sinai, parallel to the ship canal and not competitory with it.

Why will the Emirati impose checking out an alternate to the Suez Canal?

The announcement of the gap of the new business line comes once the announcement of the temporary suspension of the “Eilat Ashkelon” project, that raises questions on the explanations for the UAE’s insistence on finding international and regional alternatives and corridors for the ship canal.

Barghouth tried to answer them by noting the following:

The UAE acts as a tool to pressure Egypt to participate all told its economies and interests.
The UAE may be a weak and fragile country economically and its investments don’t seem to be strategic compared to international investments ، Egypt contains a fertile field for international investments.
The Emirates deals with Egypt in 2 ways that. the primary as a detailed friend, and therefore the second by wrapping his arm with T-plans ، He vulnerable his ways and strategic strength ، On the opposite hand, Shami attributed it to ، All countries – no matter they’re – get to extend their capabilities and contend with others.

What is the importance of the Suez Canal?

The economy is that the primary driver of politics between nations, in spite of bilateral relations ، There area unit historical issues between the Emirates and Persia, and therefore the business link is also a goal to serve political alliances, however it’ll still serve solely internal trade ، There area unit conflicting alliances between the 3 countries and incentives are often sought-after to strengthen them.

Will the trade route be a viable different to the Suez Canal?

Ibrahim Fahmy, associate freelance marine authority and oil and gas business skilled, aforesaid the new route would be a thriving different to the ship canal. For many reasons, most notably transportation, infrastructure, and therefore the quality of the products to be transported ، More than eightieth of world trade traffic passes through ocean routes, particularly the ship canal, and therefore the contribution of land routes doesn’t exceed two hundredth.

The add of your time, effort, insurance and risk is within the interest of Premium Shipping ، Road transport should have a well-developed infrastructure like high-speed rail, a secure road network, multiple terminals for freight, control, review and customs clearance, important investments and traditionally stable relations between countries with land borders.

Apart from oil and gas, the Persian Gulf region doesn’t represent an enormous weight in international trade; thanks to restricted agricultural and industrial production and raw materials. In terms of consumption, not like the downswing within the international economy, it’s a comparatively tiny market thanks to the poor population ، On the opposite hand, countries with massive populations like Republic of Iraq and Persia area unit experiencing troublesome economic conditions ensuing from self-discipline policies and internal conflicts.

Climate change and associated challenges

Given global climate change and therefore the challenges related to it, there’s a global trend to scale back dependence on oil and implement policies. And measures to scale back world oil costs within the coming back years, creating investment within the construction of long pipelines on the shore. Stretching for thousands of kilometers may be a vast profit .. associate economic risk that can’t be reached at this time.

Offshore oil tankers area unit – in themselves – storage vehicles, and oil will solely be transported by land in sure sectors between countries at a high price, particularly once egg laying subsurface lines ، Securing oil transportation by road through pipelines in hot spots is popping the road into a weaker spot than before. In distinction to the high material prices and therefore the while it takes to make long lines, that take many years. particularly sturdy in light-weight of the volatility of the oil markets.

As for gas, most of its international trade is shipped by ocean, with the exception of Russian shipping pipelines to Europe. that puts pressure on negotiation and accounts balance and influence ، Attempting to seek out {an different|an alternate|another} to Russian gas by making alternative routes to Europe from alternative countries can inevitably face Russia’s hindrance.