The Houthi group’s attacks on international shipping vessels in the Red Sea and subsequent threats to Suez Canal navigation have brought attention to the commercial linkage project between Egypt, Jordan, and Iraq.
Meanwhile, discussions are also underway about adding new routes to connect Gulf countries with Egypt.
The Arab linkage line, coordinated between the transport ministries of Egypt, Iraq, and Jordan and in strategic partnership with the Arab Bridge Maritime company, began its first phase of operation earlier this year, according to a statement from the Egyptian Ministry of Transport.
The initial phase connects the Aqaba Port in Jordan with the Nuweiba Port in Egypt across the Gulf of Aqaba, and from there, overland through Sinai to the ports of Arish, East Port Said, Damietta, and Alexandria. This facilitates the shipping of goods from these locations to European and American ports.
The Egyptian Ministry of Transport states that this first operational phase is part of a comprehensive, multimodal Arab trade logistics line, incorporating land, rail, river, and sea transport.
The project includes the development of 7 international logistic corridors linking the Nuweiba and Taba ports on the Gulf of Aqaba with the Arish and East Port Said ports, extending to all Egyptian Mediterranean ports.
Phase Two
The ministry’s statement further reveals that the second phase of the integrated Arab trade line is currently in progress. This phase involves constructing a 500-kilometer railway line from Taba to Arish to Bir al-Abd to Ferdan, aiming to increase the volume of goods transported from the Gulf, Iraq, and Jordan to Europe and America.
Egyptian Transport Minister Kamel El-Wazir emphasized Egypt’s commitment to supporting this new route by facilitating procedures and encouraging companies to utilize the line in both directions.
This is particularly significant for transporting goods from the Gulf, Iraq, and Jordan to European and American countries.
The Egyptian government aims to position Egypt as a global trade and logistics hub by amending customs legislation to ease and increase the flow of international transit directly through Egyptian territory. This includes upgrading infrastructure such as ports, road networks, and railways.
The Transport Ministry has also joined agreements to expedite the transit of foreign trucks through Egypt.
Mohamed Ali Ibrahim, former dean of the International Transport and Logistics College at the Arab Academy for Science, Technology & Maritime Transport, views the line as a potential gateway for exports from Jordan and Iraq and possibly for Gulf country exports.
However, he clarified to Al-Sharq that while this could be a solution for some Red Sea neighboring countries, it cannot replace the Suez Canal.
Suez Canal Authority head Osama Rabie told Al-Sharq that the canal’s revenues fell by 44% in January compared to January 2023, amounting to $802 million, due to a decrease in ship traffic through the vital passage as a precaution against Houthi attacks in the southern Red Sea.
The Suez Canal facilitates about 12% of global trade volume and approximately 25% of container trade, saving ten to fourteen days of travel compared to the southern route around the Cape of Good Hope.
