Syria Bans Petroleum Transportation by Turkish Firms

The decision caused Turkish firms shipping petroleum products via rail through Syria to Iraq to suspend their operations. The firms indicated that they were mystified by the attitude of Syria.

Turkish firms had been transporting petroleum products via rail from Hatay province’s city of Iskenderun to Iraq through Syria for nearly a year prior to the announcement. The tankers unloaded their cargo at depots outside of the Iraqi capital Bagdat (Baghdad).

The transportation companies are especially confused by Syria’s announcement because the Syrian government had been making money off the taxies levied on the goods being shipped through the country.

TIPIC, which accounts for the bulk of the petroleum transit to Iraq via rail, reportedly plans to carry on with shipments even though Syria decided to ban private sector transportation of petroleum products. TIPIC has transported nearly 300,000 tons of petroleum since 2003 and sends on average 500-600 tons of products a day through Syria by rail.

Syria says that the reason for its decision to ban transportation was because the security situation in Iraq is unstable. However, there is speculation that the Damascus administration adopted its current stance after Iraq refused Syria’s request for additional rail cars for transportation. The Baghdad administration felt that honoring such a request would cause harm to its relations with Turkey.