Turkish exportors turn to Suez canal to bypass Egyptian ports

Turkish exporters have been using a multi-modal route to ship from Turkey to Egypt then overland to ports in the south of the country then again by sea to Saudi Arabia.

“In order to prevent exports from halting and to enable access to those [Middle Eastern] markets, we will use the Suez Canal. We will give the necessary [financial] support,” Turkish Economy Minister Zafer Çağlayan recently told Turkish daily newspaper, Hürriyet.

Ro-ro services between the Mediterranean Turkish port of İskenderun and a number of Egyptian ports – mainly Alexandria and Port Said – have been hit by political tensions and violence like other areas in the coup-torn country. The issue is of particular concern as ro-ro services have been of great significance for Turkey’s trade with the Middle East since 2011, when Syrian unrest emerged.

Ro-ro vessels depart from Iskenderun, sailing to Saudi Arabia’s Duba Port, via Egypt. Large-volume land transportation vehicles, which depart from İskenderun, sail to Port Said before driving 180 km cross country to Egypt's southern shore; to be reloaded onto a second ro-ro service and carried to their final Saudi Arabian destination.

“Using the Egyptian route was a little adventurous for us, but we did it and reached Saudi Arabia and other markets through the Red Sea,” he said.

The minister said keeping transportation to the Middle East going is critically important amid the pilgrimage season when demand for certain goods soars. Using the Suez route would be beneficial, as most goods sent are food or agricultural products that require shorter shipping time, according to Fatih Şener, executive board chairman of the Istanbul-based International Transporters Association.

There are two companies that have been making ro-ro trips between Turkey and Egypt twice a week since 2012, while 600 to 700 vehicles have been shipped first to Egypt and then to Saudi Arabia every month.

“If the new Suez route proceeds regularly, it will be a relief for transporters and free them from a huge burden,” Şener said.

The economy ministry is now working on overcoming the obstacles on the Suez route.

“The Suez has particular characteristics. The ship tonnage passing thorough there is different and passage fees are very high,” Çağlayan said.

The extra expenses of using the new route will be covered by the government to support Turkish exporters and transporters.

Despite welcoming the move, Şener said the new route seemed likely to remain only temporary as Ankara will not choose to continue footing the costs of shipping through the Suez.

“Normally large container ships use the canal, so when [the passage fee] is divided between 1,000 containers it doesn’t hurt much; but Turkish ships operating are carrying [smaller cargoes],” he said.

Another important reason the government will not consider using the canal permanently is based on a strong desire to preserve Egyptian trade links.

“The government wants to keep trade with Egypt going and according to the current scheme, 10% of goods carried stay in the country. When the Suez Canal will be used, ships won’t call at Egyptian ports,” Şener said.

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