S\u00e3o Paulo \u2013 International logistics corridors are undergoing a transformation, with competitiveness shifting from cost and transit time toward the ability to adapt freight transport to different circumstances. The new landscape requires countries to build networks rather than simple port connections and rethink how businesses are managed.<\/p>\n\n\n\n
Broadly speaking, this was one of the ideas Egyptian logistics, international trade and supply chain expert Sara El-Gazzar discussed during her visit to Brazil last week, when she spoke to ANBA about her research. The current impact of geopolitics on global shipping routes has made the issue more urgent.<\/p>\n\n\n\n
\u201cIt\u2019s no longer like before. We now need to look at dynamic routes that can change depending on the situation,\u201d she said.<\/p>\n\n\n\n
Dean of the Faculty of International Transport and Logistics at the Arab Academy for Science, Technology and Maritime Transport (AASTMT), based in Egypt, and senior consultant to the Union of Arab Chambers, headquartered in Lebanon, El-Gazzar was in Brazil in late August as a panelist at the Brazil & Arab Countries Economic Forum, held by the Arab-Brazilian Chamber of Commerce<\/strong> (ABCC<\/a>) in S\u00e3o Paulo.<\/p>\n\n\n\n One of the designers of Egypt\u2019s food subsidy system and leader of more than 15 European Union-funded projects, she conducts logistics research at an economic center of the Union of Arab Chambers and the research center of the faculty where she works. The two institutions collaborate on the concept of competitiveness based on resilience and value chains.<\/p>\n\n\n\n Below are some of Sara El-Gazzar\u2019s main ideas, shared in an interview with ANBA, on the transformation of global logistics corridors.<\/em><\/p>\n\n\n\n \u201cLooking at what is happening all over the world today, you can see how political issues are currently managing logistics arrangements, logistics routes and logistics corridors, which are now being used from a political perspective.<\/p>\n\n\n\n \u201cAnd accordingly, if we look at the current situation, we can say that logistics corridors have been witnessing an unsustainable situation, and competitiveness will no longer be measured by the cheapest way of transport or the most efficient way of transport, but by the most adaptable way of transport.<\/p>\n\n\n\n \u201cCompetitiveness now is more related to more reliable modes of transport and more adaptable ways of transport. Accordingly, we need to change the way we manage logistics arrangements and how we manage business all over the world.\u201d<\/p>\n\n\n\n \u201cThat\u2019s why the logistics connection between Brazil and the Arab countries shouldn\u2019t be judged based on geographical connections anymore. We shouldn\u2019t rely only on the geographical connections between ports; we should rely on what we call networks. So, according to this, we shouldn\u2019t look at Brazil only as Brazil; we should look at Brazil as Latin America.<\/p>\n\n\n\n \u201cAnd we should look at the different routes connecting Brazil with different countries in Latin America and how Brazil can serve as a gateway to Latin America by aggregating routes from different Latin American countries, whether we are talking about trade or value-adding activities. Because this is the way of managing a sustainable supply chain through value-adding activities.<\/p>\n\n\n\n \u201cFrom the other perspective, although the Arab countries have a unique geographical position, they cannot depend on it anymore. When we talk about the geographical position of Bab el-Mandab, the Strait of Hormuz or Gibraltar, they are not as helpful anymore due to the current situation all over the world. So we should talk about alternative hubs or alternative networks.<\/p>\n\n\n\n \u201cSo, how can we manage the nodes between Arab countries and their neighbors? I mean, how can we, for example, look at Morocco as a gateway to West Africa and Europe, and Egypt as a gateway to Africa and also the Mediterranean, and the Gulf as a gateway to Asia?<\/p>\n\n\n\n \u201cAnd by this way, we can look at Brazil and the Arab countries as networks to connect the world together, from Latin America to Africa, Asia and Europe. By this way, we should look at multimodal transport. So it\u2019s a dynamic relationship, not a sustainable route anymore.\u201d<\/p>\n\n\n\n \u201cSo I cannot say we have the Suez Canal, we have Bab el-Mandab, we have Hormuz. It\u2019s not like before. We should now look at dynamic routes that might be changeable according to the situation.<\/p>\n\n\n\n \u201cSo today, if a route is blocked due to a war or due to a certain situation, we need to identify what is the best alternative at that moment. And the best alternative is not the cheapest. The best alternative is the one that is adaptable according to each situation.<\/p>\n\n\n\n \u201cSo the countries that have this power, the power of being adaptable and resilient, the countries that are business-oriented, are the countries that have the networks.\u201d<\/p>\n\n\n\n \u201cA few years ago, when we started talking about alternative routes, even within think tanks, they said it was a crazy idea. \u2018Why should we abandon sustainable routes that are already efficient, cheap and fast, and invest in others?\u2019 But after the war and the different geopolitical situations, it became clear that no, nothing is sustainable, nothing is guaranteed.<\/p>\n\n\n\n \u201cAnd to survive in this world, you need to guarantee that you can deliver products and services to the final destination by any means, because this is what you need to survive. So maybe you can sacrifice cost, and maybe sometimes you can sacrifice time, to reach the final destination. So it\u2019s always an equation of trade-off: what can I sacrifice in the formula to reach the final destination?<\/p>\n\n\n\n \u201cThe old formula was to reach the customer with the lowest possible cost, the lowest possible time and the highest quality. Now we don\u2019t have the same formula. It\u2019s always a trade-off now.\u201d<\/p>\n\n\n\n Read also<\/em>: Translated by Guilherme Miranda<\/strong><\/p>\nNew competitiveness in transport<\/strong><\/h4>\n\n\n\n
The connection between Brazil and Arab countries<\/strong><\/h4>\n\n\n\n
The era of dynamic routes<\/strong><\/h4>\n\n\n\n
The focus on reaching the destination<\/strong><\/h4>\n\n\n\n
Trade: New landscape calls for alternative routes<\/a><\/p>\n\n\n\n