Enab Baladi – Amir Huquq

The Syrian government announced foreign investments to establish and operate dry ports, a term that was not common in Syria before the fall of the previous regime.

Dry ports represent a modern and advanced model of storage and transportation ports, enhancing countries’ capabilities by facilitating the movement of goods, reducing costs, and simplifying customs procedures.

Last May, the General Authority for Land and Sea Ports in Syria signed two strategic memoranda of understanding with the French company “CMA CGM” and the Chinese company “Fidi Contracting,” aimed at establishing and operating dry ports in the Syrian-Jordanian free zone, the free zone in Adra in rural Damascus, and the free zone in Hasya area in Homs governorate.

The goal of these agreements is to develop the logistical infrastructure and strengthen the role of free zones as pivotal centers for regional trade, by connecting them with international maritime and land transport networks.

What are dry ports?

Since the announcement of the signing of these memoranda, the term “dry ports” has caused much ambiguity and debate, as it has not been previously used in Syria’s economic environment.

The Director of Public Relations at the General Authority for Land and Sea Ports, Mazen Alloush, told Enab Baladi that dry ports are integrated logistical centers established on land and linked to seaports via land or rail transport networks, serving as a complementary role to traditional ports.

Alloush attributed the authority’s goal in establishing dry ports to alleviating pressure on maritime ports, reducing the time required for loading and unloading goods, and facilitating customs clearance procedures within the country, contributing to improving supply chain efficiency and enhancing the competitiveness of the national economy.

Alloush considered these ports to be an important pillar for transforming free zones into regional platforms for transit trade and re-export.

Millions of dollars

Regarding the signing of the memoranda of understanding, Alloush pointed out that the agreements include investing large areas of free zones to establish and operate dry ports and integrated logistical areas.

In terms of value, the initial investments are estimated at millions of dollars, according to Alloush, who highlighted future expansion plans connected to increased trade and transport activities.

He explained that the signed contracts are long-term investment memoranda of understanding that organize the relationship between the authority and investors, based on the principle of partnership in development and operation, as Alloush added.

The contracts from the two memoranda serve Syria through:

• Attracting direct foreign investments.
• Providing local job opportunities in the transport and services sector.
• Enhancing Syria’s role as a vital trade corridor between East and West.
• Supporting the infrastructure for exports, especially for Syrian products.
• Reducing costs for industrialists and traders by shortening clearance time and other aspects.

A strategic step to develop infrastructure

Economic circles in Syria welcomed the establishment of dry ports due to Syria’s strategic location as a bridge between East and West. Thus, these ports enhance its status as a regional logistics center and contribute to facilitating the movement of goods to and from neighboring countries, especially amid the challenges faced by traditional maritime ports.

University professor and economic expert Abdul Rahman Muhammad told Enab Baladi that dry ports are a strategic step toward developing the logistical infrastructure in Syria, contributing to strengthening the national economy and achieving integration with maritime ports.

He expected these projects to bring about a qualitative shift in the transport and trade sector, enhancing Syria’s ability to regain its role as a regional center for trade and transport.

According to Dr. Muhammad, the goals of establishing dry ports include:

• Reducing pressure on maritime ports by minimizing congestion.
• Accelerating customs clearance and transport operations.
• Lowering transport and storage costs.
• Supporting regional and international trade by improving supply chain efficiency.
• Enhancing the investment environment by providing logistical services.

Not entirely new

Dr. Abdul Rahman Muhammad pointed out that dry ports are not an entirely new idea in Syria, as plans were previously announced for establishing dry ports in areas like Deir Ezzor and al-Bukamal in 2018.

However, in his view, the actual implementation of these projects remained limited due to economic and political challenges.

Meanwhile, the recent agreements represent a new step toward practically activating these projects, making them a relatively recent experience in the Syrian context.

Impact on the economy

It is anticipated that these ports will benefit the economic production cycle and be one of its essential pillars.

Dr. Abdul Rahman Muhammad sees the ways these ports serve the Syrian economy as:

• Lowering transport and storage costs by improving logistical operation efficiency, thus enhancing the competitiveness of Syrian products in global markets.

• Attracting foreign and local investments by providing modern infrastructure.

• Offering thousands of direct and indirect job opportunities.

• Accelerating the movement of goods and increasing the volume of regional and international trade.

As for the effects, according to Dr. Muhammad, they manifest in improving the flow of goods and reducing waiting times at maritime ports, as well as lowering storage costs in the short term.

In the medium term, they work to enhance Syria’s position as a regional trade corridor and increase revenues through logistics service fees.