![Port of NEOM development area in focus at Oxagon[34].jpg](https://i0.wp.com/crewmirror.com/wp-content/uploads/2023/05/The-port-of-NEOM-in-Saudi-Arabia-is-open-for.jpg?fit=767%2C400&ssl=1)
NEOM Port Emerges as Strategic Alternative for Gulf Shipping Amid Iran Conflict
A month into the Iran war, Qatar’s Salam Studio & Stores faced significant disruptions, lacking regular Red Bull shipments due to the conflict and the closure of the Strait of Hormuz. With products scattered across ports in India and Sri Lanka, Salam sought alternative routes to maintain market share, opting to ship via Saudi Arabia’s Port of NEOM, which is promoting itself as a faster trade option.
Initially, Salam tested this route with a single truckload from Europe, which arrived in 22 days—almost half the usual time—despite the costs skyrocketing from approximately $2,500 to $10,000 per load due to increased diesel and insurance prices. Encouraged by the quicker delivery, the company ordered 15 more truckloads.
NEOM, conceived by Saudi Crown Prince Mohammed bin Salman, aims to facilitate faster trade but currently sees limited activity, primarily focusing on roll-on/roll-off vessels. While some European importers are using the port, shipping data indicate it remains a niche solution rather than a widespread fix for the disruptions caused by the Iran war, which has blocked a significant portion of global oil and gas flows.
