The Arab-Brazilian Chamber of Commerce has completed feasibility studies for the launch of a new trade route connecting Arab countries and Brazil in order to enhance trade and economic relations between the two parties.
Dr. Khaled Hanafi, Secretary-General of the Arab Chambers Union, said that the Arab-Brazilian Chamber of Commerce has already completed the economic feasibility study for establishing a new trade route connecting the Arab region and the Latin American continent.
The study has identified 5 highland areas in the Arab region where the new route passes through, namely Saudi Arabia, the United Arab Emirates, Oman, Egypt, and Morocco, in addition to the port of Santos in Brazil.
In response to a question from the Brazilian Arab News Agency “ANBA” about the specified time for the project to be implemented, the Secretary-General of the Union of Arab Chambers said that the economic feasibility study has already been completed.
There are some other steps being taken to ensure the success and continuity of this trade route. He explained that the study was adopted by the Arab League, the Union of Arab Chambers, and prepared by the Arab-Brazilian Chamber of Commerce.
“I recently concluded a visit to the Kingdom of Saudi Arabia, where I discussed the recent launch of a new air route connecting the kingdom with Brazil, the sixth largest economy in the world. There are promising opportunities for economic and trade relations between Arab countries and Brazil, which will also serve as a gateway for Arab products to enter the Latin American continent.”
Dr. Sarah El Gazar, the dean of the Academy of International Transport and Logistics at the Arab Academy for Science, Technology and Maritime Transport, expects the completion of all details regarding the new trade route by mid-year.
The route will start from the port of Santos in Brazil and will serve as pivotal points in the Gulf region and Africa for the five Arab countries involved.
The butcher explained that operating a regular shipping line and achieving economic returns from it requires relying on more than one focal point in several countries in South America and the Arab region, not just ports, but also accompanied by huge logistics areas capable of accommodating the expected trade movement from operating those regular lines.
She added that the chosen focal centers in the Arab region were determined based on the volume of trade between the Arab state and South America, as well as the flight routes. Therefore, the five Arab countries were selected.
“The Butcher” stated that the Arab-Brazilian Chamber of Commerce conducted a market study in the six countries (Brazil, Saudi Arabia, UAE, Oman, Egypt, Morocco) to identify products that will be traded through shipping lines.
The initial phase will be for bulk carriers, especially since the majority of mutual trade between Arab countries and Brazil is in bulk form. The second phase will involve operating various types of container ships.
She added that the Arab-Brazilian Chamber of Commerce has assigned the task to a specialized Brazilian consulting firm in managing financial portfolios in the areas of trade exchange to prepare the final studies for the contracts and agreements that will be signed by the Arab and Brazilian governments, in addition to establishing a joint-stock company to manage the trade route and the methods of participation in it.
