Value of goods through Sharjah-Oman logistics corridor jumps 66% in three months

The value of goods passing through the Sharjah-Oman logistics corridor has surged over 66 percent in the initial three months of its operation, as businesses seek to avoid the volatile Strait of Hormuz due to ongoing tensions with Iran. Since its inauguration on May 17, the corridor has facilitated the exchange of Dh1.7 billion ($463.21 million) worth of commodities.

Launched by Sharjah Ports, Customs and Free Zones Authority in collaboration with Oman Customs, the corridor exemplifies a "well-coordinated sea-land logistics approach that enhances trade flow and streamlines supply chains", Sharjah Customs announced in a recent statement. This initiative provides importers, exporters, freight companies, and logistics service providers with more adaptable and competitive logistics alternatives.

As the Iran war enters its seventh month, the Strait of Hormuz, a crucial global route responsible for nearly a fifth of worldwide oil and gas, remains largely impassable due to persistent Iranian attacks on ships. Consequently, the reduced vessel traffic through the narrow strait has disrupted commodity trade and disrupted supply chains.

To bypass the strait, heavy goods vehicles are increasingly employed in the UAE to transport items ranging from grocery items to industrial goods from Oman and Saudi Arabia, while sending manufactured goods to Omani ports. During the first three months of operations, the number of lorry movements through the corridor surpassed 34,000, while processed customs declarations exceeded 32,000.

The corridor links Sharjah and Oman's ports and logistics centers via the Kalba Khatmat Malaha and Al Madam Border Crossings. This connection provides businesses with multiple options for transporting goods, shortens the overall cargo journey, and reduces the number of handling stages, thereby improving the efficiency of logistics operations.

Mohammed Al Raisi, director of Border Crossings and Entry Points Affairs at Sharjah Ports, Customs and Free Zones Authority, stated that the early results of the corridor's first months highlight the success of its underlying vision. "Our primary objective from the beginning was to offer businesses more than just a transit route," Al Raisi added.

The surge in trade flows and customs transactions, together with the influx of new customers within a short period, demonstrates increasing demand for the integrated logistics services provided by the corridor.