Dec 04 2024
Road transport: Iraq’s engine for growth
As Iraq rebuilds its economy, the road transport industry is emerging as a vital force for development.
Iraq’s strategic location at the crossroads of major trade routes in the Middle East positions it as a natural logistics centre.
To better understand the transformative role of the road freight sector, we spoke with Hussein Mohammed Monaim, CEO of IRU member Transforat.
What is the role of the sector?
Iraq's road goods transport sector is playing a pivotal role in revitalising the economy, as the country continues to rebuild from years of conflict.
At Transforat, our vision is to harness technology to improve efficiency and position Iraq as a regional leader in multimodal logistics. Our approach is rooted in modernising infrastructure, leveraging advanced technology, prioritising sustainability and safety, and promoting regional collaboration.
Considering Iraq’s current road network, we advocate for a holistic approach to infrastructure development, prioritising both reconstruction and sustained maintenance for long-term efficiency and safety.
Technology will be instrumental in optimising our transport systems and connect road, rail and maritime, boosting the efficiency of operations and reducing costs. As Iraq continues to rebuild, adopting cleaner technologies and improving safety, in line with global standards and commitments, are essential.
What are Iraq’s geographical advantages for logistics?
Iraq’s geographical position offers significant logistical advantages. At the crossroads of major trade routes linking Europe, Asia and the Middle East, Iraq has the potential to become a central logistics hub.
Its strategic position connects key markets in the Gulf Cooperation Council region, Türkiye and Iran, where trade volumes are already rising significantly.
Additionally, Iraq’s abundant natural resources, especially oil and gas, drive demand for specialised logistics services. The Tigris and Euphrates rivers, along with Iraq’s ports, present underutilised transport routes. Integrating these with multimodal logistics can lower costs and enhance both domestic and regional trade flows.
How has the sector evolved?
Over the past decade, Iraq’s road goods transport sector has seen significant progress, particularly with the increasing adoption of multimodal logistics. The country has made considerable strides in rehabilitating its road network, repairing more than 3,000km of major roadways.
Private sector involvement has surged, over 200 new firms have entered the market over the past three to five years, spurring innovation and competition. Technology adoption has also improved significantly, with GPS tracking and digital freight management systems enhancing efficiency and reducing delivery times.
Iraq's government has streamlined regulations, shortening the process for obtaining driving licences and minimising bureaucratic delays. However, challenges such as security concerns and infrastructure gaps remain. Despite this, the sector is increasingly shaped by technological innovation and multimodal approaches.
What immediate opportunities are there?
Iraq’s road goods transport sector offers several immediate opportunities. The government is making significant investments in road infrastructure, planning to upgrade 4,000km of highways. This presents a substantial opportunity for companies to deploy smart logistics solutions.
The logistics sector is also embracing digital advancements, with companies that adopt advanced tracking systems and logistics software benefiting from reduced operational costs. Iraq’s strategic location continues to open new opportunities for expanding regional trade, with the Ministry of Trade predicting a 15% increase in trade volume.
There is now also a greater emphasis on sustainability, creating a chance for companies to lead in the adoption of greener logistics practices while reducing emissions and environmental impact. Read more
Source: IRU