DP World has created new routes to alleviate key raw material shortages affecting Turkish importers across a variety of industries, including automotive.
In recent years, Turkey 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 caused major delays for both Turkish imports and exports.
According to DP World, transit times have increased from around 25 to 60 days as a result of the new route around South Africa, affecting the availability and predictability of critical supplies for the automobile industry.
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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 average to Turkey.
This route begins in China and travels across Central Asia until arriving in Baku, Azerbaijan, where commodities are imported into Turkey.
DP World noted that once maintenance is finished in 2025, the service will be made even more efficient by adopting a new route via Georgia. This would reportedly further lower travel costs, making the route more economical and environmentally friendly for users.
READ: DP World offers solution for Turkey’s automotive supply chain issues
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.”
