New Land Routes and Pipelines Emerge as Alternatives to Strait of Hormuz
Amidst escalating tensions threatening maritime navigation in the Strait of Hormuz and the Bab al-Mandab, attention is shifting towards land routes and pipelines as potential alternatives for securing global trade and energy flow. While these projects are technically feasible, they face significant political and security challenges, requiring cooperation among nations with diverse interests and political alignments.
Abdo Qassem, co-founder of logistics and shipping firm "Pure Trans," explained that the goal of these initiatives is not to completely replace sea lanes but to create multiple options that reduce reliance on a single, potentially volatile, chokepoint. He emphasized that land routes and pipelines cannot fully substitute maritime transport due to the vastly different carrying capacities of ships versus trucks or trains. A single ship can transport approximately one million barrels of oil, a volume unattainable by land transport.
Qassem highlighted that the primary obstacle is not engineering but geopolitical complexities. Pipelines traversing multiple countries necessitate agreements between governments with divergent policies and interests. Furthermore, pipelines themselves could become targets during conflicts, adding a security risk to the already substantial financial and maintenance requirements.
The recent disruptions in the Bab al-Mandab, particularly following the conflict in Gaza, have spurred the exploration of alternatives. Qassem cited examples like new routes from Dubai to Haifa and onward to Europe for goods and vehicles. While these routes lack the capacity of sea lanes, they offer crucial additional options for supply chains during crises. Investments in ports and free zones, such as DP World's $800 million investment in Tartus port, are also reshaping regional transport maps.
Qassem stressed that infrastructure alone is insufficient; a stable environment is essential to protect investments. Private companies require assurance of security and a reasonable return on investment, which instability in some regional countries hinders. He believes that significant private sector involvement is crucial for developing these new corridors, with recent political statements potentially aimed at encouraging such investment. Planning for these routes has been ongoing for years, and political backing could accelerate investment attraction.
