New Delhi: The impact of increasing geopolitical tension in the Middle East and increased uncertainty on sea routes is clearly visible on global trade. Due to recent developments related to Iran and disruptions in maritime traffic, many countries are having to look for alternative options for their trade routes. Meanwhile, Saudi Arabia has taken an important step towards strengthening regional and international trade.
Announcement of starting new sea shipping service
Saudi Arabia’s Ports Authority ‘Mawani’ has announced the launch of a new sea shipping service at Jeddah Islamic Port. The service will be operated by Emirates Shipping Line and aims to further strengthen trade links between Saudi Arabia, India and East Africa. Through the new service, Jeddah Islamic Port will be connected to India’s major Mundra port and the port of African country Djibouti.
According to officials, this shipping service will be able to transport up to 2,144 twenty-foot equivalent units of cargo at a time. This will increase the capacity to transport goods and help in making the supply chain in the region more effective. Besides, trade through the Red Sea is also expected to gain new momentum, which is among the busiest sea trade routes in the world.
Mawani says that this initiative is not limited to just a new shipping service, but is part of Saudi Arabia’s long-term strategy. The country aims to further strengthen its position in the global logistics and transportation sector. Along with this, promoting exports and increasing our participation in international trade is also an important objective of this scheme.
This step is considered to be in line with Saudi Arabia’s ‘National Transport and Logistics Strategy’. Under this strategy, the country wants to establish itself as a major logistics hub between Asia, Africa and Europe.
New service very important for India
This new service is considered very important for India also. In recent months, regional tensions and blockages in sea routes have had an impact on Indian import-export activities. In such a situation, this new maritime network connecting Jeddah, Mundra and Djibouti can provide an alternative and more reliable route to Indian traders, which is likely to accelerate trade activities.
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