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Can cross-border trade in the Gulf Cooperation Council (GCC) region be more than 90% faster? Yes, transport companies from the region shared their experiences using the TIR system at our recent webinar.
Middle East | Geneva

Faster trade across GCC borders? Yes, say transport companies

19 Sep 2024 · Prosperity

Can cross-border trade in the Gulf Cooperation Council (GCC) region be more than 90% faster? Yes, transport companies from the region shared their experiences using the TIR system at our recent webinar.

The global TIR transit system is revolutionising overland trade in the GCC with simplified customs processes, express lanes and high levels of security. 

TIR has grown ten-fold in the GCC in the past three years alone.

From the ground

The webinar kicked off with an overview of GDP, trade and freight transport trends in the GCC, based on IRU’s latest Intelligence Briefing.

Three leading GCC-based transport companies then shared examples of how they have cut transit times and costs with the TIR system.

Faster trade across GCC borders? Yes, say transport companies 1
Faster trade across GCC borders? Yes, say transport companies 2

Speaking on the success they have had with the TIR system, ADSO CEO Phillip Khoury said, “I think it’s due to trust. The trust and reliability provided by the TIR system.

“I believe that traders have taken it upon themselves, especially here in the region, to be involved in TIR for multiple reasons, mainly bottlenecks, which cause a loss of revenue. When you’re trading, you feel it in your pocket, that’s the bottom line. 

“I also believe that in the GCC, companies engaging in cross-border trade want to be in control of their documentation. Having a streamlined and clean way of managing documentation is another great advantage.

“Furthermore, TIR allows you to achieve operational efficiency. We've increased our turnaround time by approximately 60–75% on some routes, allowing us to use more drivers and trucks on the same routes.”

ELITE Co. Head of Operations Asantewaa Engmann shared her experience with the TIR system, “The turnaround moment was when we saw a lot of congestion at borders. We asked ourselves, ‘how are we going to become the differentiator and drive customer experience?’”

“That was the light-bulb moment for us with TR and how we approach cross-border transport in the region.

“We are providing services like tracking and GPS, but TIR has enhanced our capabilities with its simplified processes and documentation. This ensures that shipments are processed more smoothly and efficiently, making us more reliable. We now have customers who are suddenly interested in TIR due to its impact and benefits.

“Once you can manage customer and client expectations in this way, you are able to grow as a business. Your truck utilisation also improves. You can get more out of the same fleet.”

Milton Group COO Walid Kassem highlighted how TIR simplifies transit processes, “We chose to work with TIR because the countries that we transited through are part of the system. This was not the case prior to 2019. Today, the whole GCC region is part of TIR. This simplified procedures for crossing multiple borders. 

“TIR minimises customs delays. We don’t have to obtain a guarantee for every transit country. It’s a globally recognised procedure. We use the same carnet, whether it be in Europe or the GCC. The same procedure that we use to cross a border between Bulgaria and Türkiye is the same one that is applied crossing from the UAE into Saudi Arabia.

“This increases the cost effectiveness and security of freight transport. The TIR system gave us the tools we need to make routes viable and cost effective.

“We’re seeing customers come back to us thanks to the transit time savings, and the fact that the cargo has arrived completely safe. Goods are reaching their final destination with the original seal, which means that the cargo has not been touched from the country of origin to final destination.”

 

Faster trade across GCC borders: Using TIR to boost agility and profit - Full webinar replay

GCC trade

To accompany the webinar, IRU published an Intelligence Briefing on the broader macroeconomic situation in the GCC, how it is impacting road freight and trade flow trends, and challenges in managing demand patterns.

The briefing has chapters on the GCC’s macroeconomic context, road freight market, main trade corridors, geopolitical context (Red Sea crisis), and transit systems.

 

Download briefing