Saudi Arabia launches Red Sea Express lane to bypass Hormuz

Saudi Arabia is accelerating efforts to reroute Gulf trade around Iran’s blockade of the Strait of Hormuz, launching a new Red Sea Express shipping service that connects its western port of Yanbu with Egypt and Jordan.

The alternative cargo corridor developed by Mawani, the Saudi Ports Authority, is designed to move containers to international ports more quickly, using large ships to improve efficiency and reduce waiting times, Arab News reports.

The service, which links Yanbu’s King Fahd Industrial Port with the Ain Sokhna Port in Egypt and the Aqaba port in Jordan will be operated with Riyadh-based Folk Maritime and SABIC, the petrochemical unit of Aramco. 

In the UAE, AD Ports Group and Borouge said they are developing an export hub in its eastern Fujairah port, which is located outside the Hormuz chokepoint, while DP World is marketing war-risk insurance to keep cargo flowing through conflict zones.

Meanwhile, Abu Dhabi Ship Building, part of EDGE Group, signed a $370 million deal with Italy’s Leonardo to equip Kuwait’s new Falaj 3 missile boats with advanced naval combat systems.