DP World unveils new route to boost Turkish imports
DUBAI : As global supply chains face disruptions due to the ongoing challenges in the Red Sea, DP World has introduced a new solution to address critical raw material shortages affecting Turkish importers across various sectors, particularly automotive.
Responding to the urgent need from several manufacturers and importers that use Türkiye as a production and export base for their vehicles, DP World used its global network and relationships with partners to uncover a previously underused rail route from China to Türkiye to keep vital raw materials flowing into the country.
In recent years, Türkiye has emerged as a manufacturing hub, particularly for automotive, and relies heavily on steel, chemicals and other essential raw materials from China. However, disruptions in the Red Sea have led to significant delays for both Turkish importers and exporters. Transit times have jumped from approximately 25 days to 60 days due to the new route around South Africa, which has impacted the availability and predictability of vital supplies for the automotive industry.
DP World approached its long-standing partner to help find a solution and identified a previously underused Chinese rail service, which provides a transit time of 25 days on an average to Türkiye. This route, which starts in China, goes through Central Asia, and Baku, Azerbaijan, where goods are then brought into Türkiye.
The efficiency of the service will be further enhanced by incorporating it with a new route through Georgia, once maintenance is completed in 2025. This will further reduce transit costs, making the route more affordable and sustainable for customers.
Kris Adams, CEO of DP World Yarimca said, “This new overland route is a viable option that offers a middle ground in terms of speed and price, designed by our team to help customers navigate global disruptions. Air freight offers speed but is costly and lacks capacity. The new route utilises rail and trucking services, ensuring a seamless and efficient transportation process from origin to destination.”
Rashid Abdulla, CEO and MD, DP World Europe, stated, “The new route exemplifies our commitment to facilitating trade in Europe and shows our ability to devise rapid solutions that address pressing challenges for our customers. We remain dedicated to keeping trade flowing and supporting global supply chains.”
Hakan Ayhan CEO of IFC Vesuvius, one of the customers who has been taking advantage of the new service, said, “The challenges in the Red Sea have disrupted the flow of some materials, which increased costs and uncertainties for businesses like ourselves. This service has provided us with a lifeline for urgent materials and has allowed us to sustain our operations and meet customer demands.”
DP World has been operating in Türkiye since 2016. Its operations in the country include locations such as Istanbul, Kocaeli, Ankara, Bursa, İzmir, Mersin, and Adana. The business employs over 500 employees and services up to 15,000 customers across Türkiye.