Changes in the Middle East have been unfolding very rapidly in recent months, accelerating the development of various transport projects across the region. Some of these initiatives have been driven by the geopolitical tensions of recent months, while others form part of the Gulf states’ long-term strategies.
A few words about the current transport situation
As of today, air connectivity with all countries in the Middle East is generally operating as normal, and there are no airspace closures over the Gulf states, including the UAE. However, not all foreign airlines have yet resumed direct flights to the UAE.
The situation in the Strait of Hormuz is more complicated. Attacks on commercial vessels continue, while global shipping lines remain reluctant to return to the Persian Gulf and the region’s major ports. In the UAE, ports on the country’s east coast: Fujairah and Khor Fakkan, as well as ports in neighboring Oman are being actively used to arrange cargo deliveries further inland across the UAE and the wider region.
All of this has demonstrated how vulnerable supply chain can be when heavily dependent on the Strait of Hormuz. For decades, ports inside the Persian Gulf were actively developed, but today countries are increasingly looking at alternative routes and major infrastructure projects that could reduce their dependence on Hormuz. At the same time, the traditional route between Europe and Middle East through the Suez Canal is not a complete solution either, due to threats to commercial shipping in the Bab el-Mandeb Strait and the Red Sea.
It is important to understand how the region has responded to the closure of the Strait of Hormuz, which major projects are already being implemented to reduce the impact of geopolitical instability on logistics, and what new infrastructure can be expected within the region.
The situation in the Strait of Hormuz is more complicated. Attacks on commercial vessels continue, while global shipping lines remain reluctant to return to the Persian Gulf and the region’s major ports. In the UAE, ports on the country’s east coast: Fujairah and Khor Fakkan, as well as ports in neighboring Oman are being actively used to arrange cargo deliveries further inland across the UAE and the wider region.
All of this has demonstrated how vulnerable supply chain can be when heavily dependent on the Strait of Hormuz. For decades, ports inside the Persian Gulf were actively developed, but today countries are increasingly looking at alternative routes and major infrastructure projects that could reduce their dependence on Hormuz. At the same time, the traditional route between Europe and Middle East through the Suez Canal is not a complete solution either, due to threats to commercial shipping in the Bab el-Mandeb Strait and the Red Sea.
It is important to understand how the region has responded to the closure of the Strait of Hormuz, which major projects are already being implemented to reduce the impact of geopolitical instability on logistics, and what new infrastructure can be expected within the region.
1. Syria – a new gateway to the Middle East
Let us start with the Mediterranean coast. The Middle East continues to develop trade relations with Europe, but due to problems along the main route through the Suez Canal, some shipping lines have started rerouting vessels around Africa via the Cape of Good Hope, thereby increasing both transit times and transportation costs. Against this backdrop, market participants have turned their attention to Syria and its Mediterranean ports, as sanctions on the country have only recently begun to be lifted. Syria is increasingly being considered as a potential gateway to the Middle East.
Major market players have started investing in the development of the country’s logistics infrastructure. For example, CMA CGM signed an agreement with Syria’s General Authority for Land and Sea Ports to manage and operate two dry ports in the Adra and Aleppo free zones, and also agreed to invest in the development of the Port of Latakia. DP World, in turn, committed to investing approximately USD 800 million in the development of the Port of Tartus. Cargo delivery routes from these ports to Saudi Arabia and the UAE already exist today.
Major market players have started investing in the development of the country’s logistics infrastructure. For example, CMA CGM signed an agreement with Syria’s General Authority for Land and Sea Ports to manage and operate two dry ports in the Adra and Aleppo free zones, and also agreed to invest in the development of the Port of Latakia. DP World, in turn, committed to investing approximately USD 800 million in the development of the Port of Tartus. Cargo delivery routes from these ports to Saudi Arabia and the UAE already exist today.
2. A new multimodal corridor through Iraq and Türkiye
Türkiye and Iraq are planning to establish a multimodal corridor from the deep-water Al-Faw Port currently under construction in southern Iraq to the Turkish border and further onward to European markets. The Development Road project includes approximately 1,200 km of railways and roads. The project participants are Türkiye, Iraq, Qatar and the UAE, and its implementation is divided into several phases. This route will not eliminate the risks associated with a potential closure of the Strait of Hormuz, but it will provide another option for cargo transportation within the region.
3. Railway route through Iran and Turkmenistan
In addition, construction continues in Iran on the approximately 634-kilometre Chabahar–Zahedan railway section. The line begins in Chabahar, Iran’s only oceanic port, and runs through Iranshahr, Khash and other areas in the country’s southeast, connecting the port with Iran’s existing railway network at Zahedan station. In the future, the route is planned to be extended from Zahedan through Mashhad to Sarakhs on the border with Turkmenistan. This will create a convenient land-and-sea corridor for Central Asian countries and become part of the International North-South Transport Corridor.
4. Infrastructure projects in UAE
The UAE is seeking to maintain its status as one of the largest cargo hubs between East and West, while also improving logistics efficiency both within the region and domestically. Against the backdrop of geopolitical tensions, the UAE is also stepping up work on projects that could eventually help reduce the country’s dependence on routes through the Strait of Hormuz.
For example, DP World is planning a new port near Fujairah. The company has reached an agreement in principle to construct a new multipurpose port and container terminal on the UAE’s east coast, approximately 70 miles south of the Strait of Hormuz. In parallel, the possibility of building a new terminal within the existing Port of Fujairah is also being considered. Once the facilities are commissioned, DP World’s container handling capacity in the UAE is expected to increase from 19.4 million to almost 22 million TEU. Construction will be carried out in phases and is expected to take 24-30 months.
Construction of the region’s railway network is also continuing. CMA CGM, together with AD Ports Group and CMA Terminals Khalifa, plans to establish an integrated network of inland depots, dry ports and logistics hubs connected by rail, with access to neighboring markets.
In addition, the UAE and Oman have begun construction of the region’s first cross-border railway, which will connect the UAE’s national railway network with the Port of Sohar in Oman. The project will link five major regional ports and enable cargo to be transported from the Omani port on the Indian Ocean coast directly into the UAE. In this way, the UAE is building a powerful land-based infrastructure network that will connect all major gateways into a single integrated system.
None of these projects will replace the Strait of Hormuz or traditional maritime routes, but together they will gradually create a network of alternatives around them. As a result, cargo owners will have more routing options, helping to reduce risks and uncertainty and, in the longer term, making regional logistics even more resilient.
For example, DP World is planning a new port near Fujairah. The company has reached an agreement in principle to construct a new multipurpose port and container terminal on the UAE’s east coast, approximately 70 miles south of the Strait of Hormuz. In parallel, the possibility of building a new terminal within the existing Port of Fujairah is also being considered. Once the facilities are commissioned, DP World’s container handling capacity in the UAE is expected to increase from 19.4 million to almost 22 million TEU. Construction will be carried out in phases and is expected to take 24-30 months.
Construction of the region’s railway network is also continuing. CMA CGM, together with AD Ports Group and CMA Terminals Khalifa, plans to establish an integrated network of inland depots, dry ports and logistics hubs connected by rail, with access to neighboring markets.
In addition, the UAE and Oman have begun construction of the region’s first cross-border railway, which will connect the UAE’s national railway network with the Port of Sohar in Oman. The project will link five major regional ports and enable cargo to be transported from the Omani port on the Indian Ocean coast directly into the UAE. In this way, the UAE is building a powerful land-based infrastructure network that will connect all major gateways into a single integrated system.
None of these projects will replace the Strait of Hormuz or traditional maritime routes, but together they will gradually create a network of alternatives around them. As a result, cargo owners will have more routing options, helping to reduce risks and uncertainty and, in the longer term, making regional logistics even more resilient.
WELLGO is ready to support your business in the times of turbulence and provide solutions that will help manage tactically and develop strategic partnerships further. Please share your requests via the dedicated form on our website or by email info@wellgo.ae