News / Dubai and Oman open 'green corridor' for smoother cargo flows

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Authorities across the Middle East  are making every effort to keep supply chains moving amid a regional geopolitical crisis showing no sign of easing or ending any time soon.

In a significant proactive step, the customs authorities of Dubai and Oman have agreed to open a ‘green corridor’ to enable cargo to move between two areas which have been severely disrupted.

“This initiative…reflects the spirit of cooperation and fraternal relations between the two sides,” Dubai Customs said yesterday.

The collaborative framework broadly calls for a multimodal model, with the final legs on both sides covered through land routes. The border points identified for the green corridor are Hatta in the UAE and Al Wajajah in Oman.

The Hatta-Al Wajajah border crossing is the primary land route connecting Dubai to Muscat.

“Upon arrival of goods from the rest of the world at ports in Oman, a customs declaration shall be duly completed and cargo cleared in accordance with the customs regulations and procedures in force in the sultanate, before the customs seal is affixed to the containers/trucks,” a notice explained.

That green corridor system works in both directions, and industry sources in the Gulf said goods exported out of Dubai could also be transported through the Hatta border point and shipped out via Oman’s seaports.

And the integrated corridor covers cargo meant for local markets and free-trade zones, subject to standard clearance procedures already in place in line with Dubai Customs rules.

The move comes as ocean carriers, trying to push goods into a region crippled by port suspensions and security threats, have positioned themselves with shuttle loops connecting to Sohar in Oman as well as Fujairah and Khor Fakkan in the UAE.

For example, French container line CMA CGM is set to introduce a shuttle loop out of Hazira, Nhava Sheva. and Mundra in India, connecting to those Gulf ports. Other carriers are concentrating Middle East supply chains around multimodal operations, especially through Sohar.

Singapore-based ONE yesterday designated Sohar and Jeddah as the two ad-hoc designated locations for import customers within and outside Dubai to return empty boxes.  Failure to comply will attract an empty container drop-off levy of $2,250 per teu and $2,750 per 40ft, it said.

And the carrier added that detention and demurrage tariffs applicable at the designated return locations would apply, subject to local laws and regulations.

Industry sources believe the green corridor network will be a boost for these alternative ocean connections, as integrated supply chains have become more and more important in an increasingly volatile environment.