Why trade corridors are the path to a more resilient future

Global trade has faced monumental challenges over the past decade, with 15% of trade flows disrupted by geopolitical tensions and climate change alone. The past year has been no exception.

Disruptions continue to take a toll on the global economy, with losses in 2024 estimated at 7% of global gross domestic product (GDP). With GDP projected to be around $45.38 trillion, that’s $3.18 trillion gone – which is roughly the size of France’s entire economy.

Amid this instability, goods are being rerouted through longer, more fragmented and less established paths. Nations are desperately trying to adapt their logistics strategies to secure vital resources like energy and metals.

We can no longer continue to just discuss how we improve the flow of goods around the world. We must act to build resilience against disruptions we face now – and those we will likely face in the future.

Diversification of trade routes, including the creation of alternative trade corridors, is critical to building this resilience.

Initiatives like China’s Belt and Road Initiative (BRI) and the India-Middle East Economic Corridor (IMEC) demonstrate how we can work toward a more resilient trading system. IMEC, for instance, will connect India, the Middle East and Europe through low-carbon rail infrastructure.

Bypassing the Suez Canal, it’s estimated to reduce transport times by 40%. This has the potential to strengthen trade flows across these markets, becoming a vital bridge between the Indo-Pacific and the Med-Atlantic.

Trade diversification not only builds resilience but also drives growth. It could increase global GDP by up to 3% by 2030, fuelled by the jobs and investment that cross-border infrastructure projects typically generate.

The potential of trade corridors is clear – but realizing these projects requires significant investment. It also depends on collaborative policies from the public and private sectors to overcome technical, financial and political hurdles. Key points include:

China’s BRI is due to cost nearly $1 trillion, while the EU Global Gateway has already allocated €10 billion ($10.3 billion) in infrastructure costs to develop the Middle Corridor (Trans-Caspian International Transport Route).

Private sector investment will undoubtedly be mobilized, but frameworks must be developed to de-risk investments and attract more funding – including the potential for green financing opportunities.

A clear mechanism to regulate trade procedures and reduce cross-border fragmentation is essential, and support from the World Trade Organization (WTO) will be important.

Including the private sector in this process will ensure commercial priorities are reflected in the planning. Europe's Trans-European Transport Network (TEN-T) policy is a good example of how we can govern efficient, multimodal transport infrastructure across multiple markets.

The private sector is uniquely positioned to bring innovation and efficiency to trade corridor development, but standardizing and scaling digital systems is key to this success. Co-investing in modern, digital-first infrastructure, such as single-window systems, will help bring diversification to life across all markets.

Governments, especially in emerging markets, can’t deliver this scale of development alone. Private sector leadership is critical, not just to shape trade agreements and regulations but to turn these plans into reality.

At DP World, we are no strangers to partnership and collaboration – they are central to our ethos. Our work in Dar Es Salaam, Tanzania, shows the power of public-private collaboration in developing efficient and sustainable transport networks.

With $250 million invested to date, we’ve transformed Dar Es Salaam into a key maritime gateway for Africa and global markets, particularly for green energy metals, which are critical to advancing global sustainability goals. By enhancing road, rail and sea connectivity from the copper belt to sub-Saharan Africa and beyond, we’re creating seamless trade routes that drive economic growth.

All this is supported by our supply chain software, CARGOES, which provides a transparent, centralized platform for collaboration. By enabling real-time visibility, CARGOES ensures Dar Es Salaam’s supply chains can predict and respond to disruptions, building resilience across the region.

The world doesn’t need more talk about trade corridors; it needs action. By working together, we can create diversified trade routes that build resilience and unlock opportunities for everyone, everywhere.