Port of NEOM runs pilot trial of intra-regional trade corridor

Port of NEOM trade corridor
Image Via: SPA | Cropped by GBN
By Arya M Nair, Content Head
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The Port of NEOM has run a pilot trial of a new strategic intra-regional corridor connecting key trading hubs in Saudi Arabia, Egypt, and Iraq.

The initiative, conducted by the Port of NEOM and the Logistics Private Sector Engagement Council, more than halved the shipment transit time compared to traditional routes.

As part of the pilot project, the first shipments departed from Cairo, passing through Safaga Port and then across the Red Sea to the Port of NEOM before continuing overland to their destination in Erbil, Iraq, covering over 900 kilometers.

The project’s success exemplifies effective integration among various governmental and regulatory bodies, including the Transport General Authority; the Zakat, Tax and Customs Authority; and private-sector partners including shipowners, key exporters and importers, export councils, and logistics companies.

The pilot project delivers a highly effective, integrated and competitive logistics solution, demonstrated by a reduction in transit time of more than 50 percent on routes from Egypt compared to traditional pathways. It not only highlights the efficiency gains achievable through collaboration but also signals the broader potential to significantly reduce costs and transit times across other regional and global trade corridors.

Additionally, the initiative lays the foundation for long-term ambitions and reinforces Port of NEOM’s growing role in advancing Saudi Arabia’s maritime and logistics goals. The port uses its unique strategic geographical location on the Red Sea, near the Arar border, which serves as a primary entry point into Iraq.

Port of NEOM intra-regional trade corridor
Image Via: SPA

The unique location positions the port as a vital regional gateway, connecting major global trade routes. By linking critical inland logistics corridors, it facilitates seamless trade flows between Asia, Africa, Europe and the Middle East, unlocking new opportunities for cross-border commerce and economic growth.

Building on the success of the initiative, the corridor demonstrates a scalable model for enhancing inland logistics connectivity within Saudi Arabia and enhances the nation’s position as a central global logistics hub in regional and international trade.

It supports the Saudi Vision 2030 goal of building a diversified economy, through the development of a world-class, integrated logistics ecosystem, linking ports, roads and customs centers.

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