In response to supply chain disruptions stemming from challenges in the Red Sea, DP World has rolled out a new initiative aimed at tackling critical raw material shortages affecting Turkish importers, notably in the automotive sector.
Recognizing the urgency expressed by numerous manufacturers and importers reliant on Turkey as a pivotal production and export hub for vehicles, DP World leveraged its global network and partnerships to unveil an alternative rail route from China to Turkey. This strategic move aims to ensure the uninterrupted flow of essential raw materials into the country.
Turkey has emerged as a key manufacturing center, particularly for automotive production, heavily relying on crucial supplies such as steel and chemicals from China. However, disruptions in the Red Sea have caused significant delays, with transit times skyrocketing from approximately 25 days to 60 days due to the detour around South Africa. This has severely impacted the availability and predictability of vital supplies, particularly for the automotive industry.
DP World collaborated with its longstanding partner to identify an underutilized Chinese rail service offering a transit time of approximately 25 days to Turkey. This route spans from China through Central Asia and Baku, Azerbaijan, before reaching Turkey.
Furthermore, plans are underway to enhance the efficiency of the service by incorporating a new route through Georgia, slated for completion in 2025. This development aims to further reduce transit costs, rendering the route more accessible and sustainable for customers.
Kris Adams, CEO of DP World Yarimca, highlighted the new route as a balanced option in terms of speed and cost, tailored to assist customers in navigating global disruptions. Rashid Abdulla, CEO and MD of DP World Europe, emphasized the company’s commitment to facilitating trade in Europe and its ability to swiftly address customer challenges.
Hakan Ayhan, CEO of IFC Vesuvius, one of the beneficiaries of the new service, praised its role in mitigating disruptions and sustaining operations amidst uncertainties.
DP World, with operations in Turkey since 2016, maintains presence across various locations in the country, employing over 500 individuals and serving up to 15,000 customers.
