Saudi Arabia, Türkiye Strengthen Supply Chains with Land Corridor Bypassing Maritime Chokepoints

Saudi and Turkish transport ministers meet to strengthen cooperation (X)
Saudi and Turkish transport ministers meet to strengthen cooperation (X)
TT

Saudi Arabia, Türkiye Strengthen Supply Chains with Land Corridor Bypassing Maritime Chokepoints

Saudi and Turkish transport ministers meet to strengthen cooperation (X)
Saudi and Turkish transport ministers meet to strengthen cooperation (X)

At a time when the near-total closure of the Strait of Hormuz and the escalating U.S.-Iran war have put global supply chains under complex geopolitical strain since late February, a strategic land corridor is emerging from the heart of the maritime blockade, promising to redraw the map of international transport and trade.

Between Riyadh and Ankara, a surge in logistics activity is moving beyond conventional bilateral cooperation. It is shaping a secure, sustainable overland alternative for energy, goods and regional food supplies bound for global markets.

The official signing on Tuesday by Saudi Minister of Transport and Logistics Services Saleh Al-Jasser and his Turkish counterpart, Abdulkadir Uraloğlu, of comprehensive memorandums of understanding on railways, logistics operations and technology laid the operational foundation for that shift.

The agreements go beyond easing the immediate movement of goods. They aim to build a cross-border connectivity system that can serve as an operational line of defense against the current maritime crises.

According to the Turkish minister, the rail link rests on infrastructure that already exists in both Saudi Arabia and Türkiye. He said the Saudi side had completed its section up to the Jordanian border, while Türkiye’s rail network extends into Syrian territory. Iraq could later join the project, he added.

How the network connects

Technically and operationally, the corridor is taking shape as a connected rail network built around geography. The line starts in Istanbul, linking Türkiye’s advanced network to the Arab interior. It crosses Türkiye’s southern border into Syria through Aleppo, then runs south to Damascus, the project’s central anchor.

From the Syrian capital, the route crosses into Jordan, passes through Amman and reaches the Saudi border at the Haditha crossing. That strategic point is where the Syrian and Turkish networks meet the advanced infrastructure of Saudi Arabia Railways (SAR).

Inside Saudi Arabia, the route takes on major development weight. Its main and branch lines pass through major projects, such as the Port of Neom, which is seen as a future logistics corridor linking Red Sea ports. It then connects Makkah and Medina before integrating with the unified Gulf railway network.

That Gulf extension opens the way for the line’s long-term goal of reaching Oman and the Arabian Sea, giving it the profile of a comprehensive intercontinental land corridor that bypasses traditional maritime choke points.

Turning the kingdom into a transit hub

Logistics expert Nashmi Al-Harbi told Asharq Al-Awsat that the signed memorandums “translate in practical terms the vision of creating a land corridor that directly links the Gulf to Europe through Jordan, Syria and Türkiye.”

Al-Harbi said Saudi Arabia’s two maritime outlets, on the Red Sea and the Arabian Gulf, combined with Türkiye’s position as Europe’s natural land gateway, “turn Saudi Arabia from a logistics endpoint into a genuine strategic transit hub connecting three continents.”

“The added value for supply chain resilience lies in drawing on the lessons of Red Sea disruptions, which proved that diversifying corridors has become an urgent necessity, not an economic luxury,” he said.

He said the project would create alternative land routes that strengthen transport resilience between Asia and Europe, away from the impact of maritime chokepoint closures or swings in marine insurance costs. Required investment in the line is estimated at about $5.5 billion, he added.

Al-Harbi said the project “fully aligns with the National Transport and Logistics Strategy, which aims to consolidate the kingdom’s position as a global hub.”

It also supports regional connectivity and the localization of the railway industry, he said, building on a strong base after the kingdom ranked fifth globally in container handling speed.

He said the project’s practical impact, including the exchange of best practices in freight, last-mile services and joint logistics centers, would cut cargo transit times between the Gulf and Europe from more than 30 days on traditional sea routes to less than two weeks by land once completed.

Al-Jasser and Uraloğlu shake hands after signing the two memorandums of understanding (X)

Alternatives as shipping costs soar

Logistics expert Hassan Al-Hilal told Asharq Al-Awsat the Saudi-Turkish memorandums represent “a strategic step that strengthens the kingdom’s role as a major center for re-exporting and distributing goods.”

He said the move comes at a critical moment for global trade. “Geopolitical disruptions in vital maritime corridors in recent months have caused record jumps in shipping and marine insurance costs, exceeding 300% compared with pre-crisis levels, as ships have been forced to take longer and riskier alternative routes,” he said.

Al-Hilal said the Saudi-Turkish logistics corridor gives suppliers and exporters “multimodal transport options, combining maritime shipping through Saudi ports with land and rail transport extending through Türkiye toward European and Central Asian markets.”

“This operational diversity directly helps reduce costs linked to storage and rehandling, and limits reliance on a single maritime route,” he said. “It ensures the stable flow of goods and products with high competitive efficiency, maximizing the benefits of the kingdom’s large investments in its port infrastructure.”

Key differences

Comparing the route with the India-Middle East-Europe Economic Corridor, or IMEC, Al-Harbi identified three key differences that he said gave the Saudi-Turkish route the edge.

“The first is the geographic route, which passes through Syria and Jordan to Türkiye, rather than IMEC’s passage through Israel. The second is the nature of implementation, as the current project is based on signed memorandums with a clear technical road map, compared with IMEC, which has been suspended since 2023. The third difference lies in the geopolitical dimensions. Türkiye, which had previously criticized the corridor for bypassing its territory, is returning through this new route strongly to the heart of the strategic Eurasian connectivity map,” he said.

Al-Hilal added what he called a decisive operational difference. IMEC, he said, is “a long-term strategic project that requires massive structural investment,” while current Saudi-Turkish cooperation is based on “maximizing the use of infrastructure that already exists” and on immediate operational links between two advanced logistics networks.

That makes it capable of delivering tangible results in the foreseeable term and at a much faster pace to meet current market needs, he said.

Joseph Salem, partner and head of travel, transport and hospitality at Arthur D. Little Middle East, said: “Reviving the Hejaz Railway is one of the most prominent infrastructure projects in the region’s modern history. The two memorandums of understanding signed in Riyadh between Saudi Arabia and Türkiye, one covering logistics services and the other railway technology, bring the project one step closer to implementation.”

He said an operational line would give the Gulf a direct overland trade corridor to Europe, reducing reliance on sensitive maritime passages at a time when supply chain resilience has become a growing strategic priority.

“The most important challenge remains implementation, whether in terms of financing, the stability of transit routes, or turning feasibility studies expected to be completed by the end of the year into actual investments,” Salem said.

“The importance of these two memorandums stems from the fact that they address the essential pillars of any cross-border railway project, including the standardization of technical specifications, signaling standards and regulatory alignment,” he added.

“If these elements are in place, the Hejaz Railway could regain its position within the next decade as one of the most important strategic land corridors linking Europe and the Gulf.”

Reviving a century-old legacy

The emerging land artery is not new. It is an ambitious revival, with a modern investment mindset, of a legacy dating back more than a century. It is an extension of the Hejaz Railway, which began operations in 1908 and linked Istanbul with Medina and Mecca through Syria and Jordan.

At the time, Damascus was a main anchor point, with lines branching north and south, as well as vital extensions to Lebanon, especially Beirut, and the historically Palestinian port of Haifa. The railway formed an integrated regional network before it broke apart during World War I.

From Neom to the border

The agreements follow advanced operational steps by the parties to the route. Ankara announced the activation of a trilateral memorandum of understanding with Syria and Jordan to modernize networks and connect the rail line between Türkiye and Aleppo, before integrating the Aleppo-Damascus-Jordan line.

Saudi Transport Minister Saleh Al-Jasser said the Saudi rail network already extends to the Jordanian border via the Haditha crossing, giving the project significant implementation flexibility. Joint technical studies will be completed by the end of this year to strengthen a sustainable land transport system, he said.

According to technical information, the new route will pass through the Port of Neom, linking the kingdom’s giga-projects to the heart of Europe through Türkiye.

International financing and operational pressure

In a related move that strengthens the corridor’s readiness, the Asian Infrastructure Investment Bank, or AIIB, approved a 645.83 million euro loan, equivalent to about $750 million, as a first package to help finance a new 127-km green railway line in Türkiye.

The strategic project, known as the Northern Istanbul Railway Crossing Project, aims to bypass Istanbul’s congested urban area and provide a high-capacity land link for freight and passengers across the Istanbul Strait. It would help ease bottlenecks in international supply chains and connect Türkiye’s two largest airports to the rail network.

The Turkish project’s total strategic cost is estimated at about $8.27 billion, with participation from the World Bank and other international financing institutions to raise the share of Eurasian rail transport.

In the final analysis, the joint rail push lays the groundwork for an unprecedented shift in regional shipping by removing the time and geographic obstacles imposed by maritime disruption. Cutting goods delivery times to less than two weeks would redirect investment toward this emerging land artery, at the expense of traditional routes and suspended alternatives.



African Leaders to Gather in Egypt for Business Summit

Friday's forum is expected to bring together more than 20 heads of state and government representatives in the Mediterranean city of Alamein, alongside business leaders, bankers and development institutions. © KHALED DESOUKI / AFP/File
Friday's forum is expected to bring together more than 20 heads of state and government representatives in the Mediterranean city of Alamein, alongside business leaders, bankers and development institutions. © KHALED DESOUKI / AFP/File
TT

African Leaders to Gather in Egypt for Business Summit

Friday's forum is expected to bring together more than 20 heads of state and government representatives in the Mediterranean city of Alamein, alongside business leaders, bankers and development institutions. © KHALED DESOUKI / AFP/File
Friday's forum is expected to bring together more than 20 heads of state and government representatives in the Mediterranean city of Alamein, alongside business leaders, bankers and development institutions. © KHALED DESOUKI / AFP/File

African leaders will meet in Egypt on Friday for a business summit that Cairo hopes will bolster its clout across the continent.

Friday's forum is expected to bring together more than 20 heads of state and government representatives in the Mediterranean city of Alamein, alongside business leaders, bankers and development institutions.

"This is an African platform," Egypt's deputy foreign minister for African affairs Mohamed Abu Bakr Saleh told AFP.

"A country in East Africa should be able to sign an agreement with a country in West, North or southern Africa through this platform."

Saleh said the forum would become a biennial event under an African Union mandate, focusing on infrastructure, trade, agriculture, healthcare, mining, technology and renewable energy.

Officials estimate Egyptian investments across Africa at around $14 billion. Among Egypt's flagship ventures is Tanzania's $3 billion Julius Nyerere Hydropower Project, built by a consortium led by Egyptian companies.

Yet trade within Africa remains limited, totalling just $192 billion in 2023 and only accounting for around 15 percent of the continent's total trade, compared with more than 55 percent in Asia and over 70 percent in Europe.

Africa also attracted about $70 billion in foreign direct investment in 2025, a fraction of the roughly $1.6 trillion invested globally, according to the UN.

"Africa possesses vast resources, but they are still not being exploited to the level we would like to see," Saleh said.

The gathering also takes place against the backdrop of an unresolved dispute between Egypt and Ethiopia over the $5 billion GERD, Africa's largest hydroelectric project.

Ethiopia says the dam, inaugurated last year, is vital for economic growth, while Egypt says it could threaten Nile water supplies without a binding operating agreement.

More than a decade of negotiations have failed to yield a settlement.

"Our position on Egypt's water security has not changed and will not change," Saleh said. "It is an existential issue for Egypt."


US Ban on $1 Billion Worth of Canadian Imports Goes into Effect

Shipping containers in the Port of Montreal, Canada (Reuters)
Shipping containers in the Port of Montreal, Canada (Reuters)
TT

US Ban on $1 Billion Worth of Canadian Imports Goes into Effect

Shipping containers in the Port of Montreal, Canada (Reuters)
Shipping containers in the Port of Montreal, Canada (Reuters)

US-Canada relations, already tense, are likely to deteriorate further after the United States went ahead early Tuesday with a decision to ban nearly $1 billion worth of Canadian imports, including dairy products and motorcycles.

The ban amounts to barely a ripple in $880 billion worth of a two-way annual trade between the two northern neighbors. But it marks another ratcheting up of President Donald Trump’s second-term trade war with America’s longtime ally and trading partner.

The import ban “certainly won't do anything to help the trade tensions between the United States and Canada,'' said trade attorney Patrick Childress, a partner at Holland & Knight and a former US trade official.

The latest sparring began over the summer when Trump reached back to a Great Depression law to impose 50% tariffs on about $20 billion worth of Canadian imports, charging that Canada discriminates against US dairy and auto producers. Canada promptly counterpunched with tariffs of 15% and 25%, matching US imports dollar for dollar.

To punish Canada for retaliating against his tariffs, Trump decided to ban a list of Canadian products, effective 12:01 a.m. Eastern time Tuesday.

The economic impact is likely to be minimal. Childress noted that the products on the banned list were already facing Trump’s tariffs. “For a lot of these goods, the 50% was already acting as a de facto ban by making importation from Canada into the United States uneconomical,″ he said.

Jacob Jensen, director of trade policy at the center-right American Action Forum think tank, calculates that the ban would cover $967 million worth of Canadian imports, based on 2025 numbers.

“This marks yet another escalation in the trade war that may result in further retaliation on the Canadian side,” Jensen said. He expects Canadian exporters and US importers “impacted by these bans will be highly motivated’’ to demand that trade officials on both sides find some way to reach a “resolution of this whole ordeal.’’


Birol: IEA Member States Will Discuss Strategic Oil Reserve Releases if Needed

This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (Photo by Ludovic MARIN / AFP)
This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (Photo by Ludovic MARIN / AFP)
TT

Birol: IEA Member States Will Discuss Strategic Oil Reserve Releases if Needed

This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (Photo by Ludovic MARIN / AFP)
This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (Photo by Ludovic MARIN / AFP)

The International Energy Agency's member states may discuss whether more strategic oil reserves could be released on the market in the future, IEA head Fatih Birol said on Tuesday.

"We are ⁠following the markets ⁠very closely, especially the product markets, diesel and others. If there is a need, ⁠of course, we will discuss with our member governments to take the necessary steps," he told reporters in Dublin ahead of a meeting of EU energy ministers.

Birol declined to ⁠comment ⁠on proposals hinted at by French President Emmanuel Macron and others to release more strategic reserves in a bid to lower oil prices.