Iraq Freight And Logistics - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Iraq Freight And Logistics Market Analysis

The Iraq freight and logistics market size is valued at USD 11.29 billion in 2025 and is forecast to reach USD 12.50 billion by 2030, reflecting a 2.06% CAGR (2025-2030). This steady pace comes as the country moves from post-conflict recovery into a decisive infrastructure upgrade cycle. Large-scale projects such as the 1,200 km Development Road initiative and the deep-sea Al Faw Grand Port are widening trade corridors, while the nationwide roll-out of the ASYCUDAWorld customs platform is shortening clearance times. The oil sector anchors demand yet is broadening into retail e-commerce, humanitarian logistics, and temperature-controlled supply chains as investors respond to rising consumer spending, international aid flows, and food-security programs. Competitive rivalry is intensifying because foreign integrators are entering through joint ventures, while fleet modernisation, digital freight platforms, and multimodal hubs are reshaping service benchmarks within the Iraq freight and logistics market.

Iraq Freight And Logistics Market Trends and Insights

Post-ISIS Oil-Export Rebound Boosting Road Freight Volumes

Crude oil exports account for 98.7% of Iraq’s merchandise shipments and 45.5% of GDP. Pipeline length reached 4,010 km by end-2024, with a further 1,155 km under construction, securing predictable flows from fields to Basra. The Sealine-3 offshore link will add 2 million barrels per day (bpd) capacity, lifting road transport demand for equipment haulage and workforce mobility. Logistics providers that field low-sulphur fuel trucks, GPS-tracked convoys, and heavy-lift trailers are winning service contracts from international oil companies. As upstream output rises, downstream petrochemical projects create backhauls that raise asset utilization and margins across the Iraq freight and logistics market.

China–Iraq Belt-and-Road Infrastructure Investments Accelerating Multimodal Connectivity

Chinese contractors signed about USD 9 billion of Iraq-based engineering work in 2024. Flagship schemes include a USD 8 billion refinery integrated with a dual-gauge rail spur, forming a backbone that aligns with the Development Road project. Freight capacity on the corridor is modeled to hit 40 million tons by 2050. Chinese EPC firms bring turnkey technology, trade credit, and rolling-stock packages that shorten execution cycles. Their presence also crowds in Gulf sovereign wealth funds eager to position Iraq as the trailer-to-Turkey alternative to the Suez route, raising long-haul container volumes through new inland depots.

Informal Levies at Check-Points Significantly Drive Up Transit Costs

Checkpoint payments act as shadow tolls that inflate delivery prices and erode small-business margins. The World Bank ties these frictions to Iraq’s fragile growth model, warning that competitiveness hinges on curbing rent-seeking. TIR accession promises an 80% cut in transit time and 38% cost savings, yet successful enforcement depends on broad security-sector reforms.

Other drivers and restraints analyzed in the detailed report include:

1. Basra Deep-Sea Port Expansion Unlocking Containerized Trade
2. Retail and E-commerce Growth in Baghdad Driving Urban Last-Mile Networks
3. Truck Fleet Obsolescence and Fuel Quality Issues Limiting Delivery Reliability

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

The oil, gas, mining, and quarrying segment captured a 40.24% share of the Iraq freight and logistics market in 2024. Pipeline extensions, crude oil gathering stations, and refinery upgrades produce heavy project cargo flows that anchor base volumes. Expanded export capacity under the Sealine-3 program supports new contracts for heavy-lift hauliers and rig-move specialists. At the same time, the wholesale and retail trade segment is on track for a 2.21% CAGR between 2025-2030 as rising disposable incomes spur product diversity and omnichannel shopping. This trend is pushing 3PLs to add cross-docking sites near Baghdad and to integrate cash-on-delivery reconciliation into transport management systems.

The manufacturing segment benefits from tariff relief on machine imports and the spread of industrial parks near Basra and Kirkuk. Cold-chain opportunities are opening in agriculture thanks to USAID-backed value-chain initiatives and a USD 112.5 million oil-seed crushing facility in Umm Qasr that will need dedicated grain-hoppers and silo services. Construction logistics mirror the USD 17 billion Development Road outlay, keeping demand high for concrete mixers, pre-cast beams, and oversized loads. As these verticals diversify, the Iraq freight and logistics market is evolving from a single-commodity backbone into a multi-sector ecosystem.

Freight transport supplied 50.61% of revenue share in 2024, underscoring its foundational role in the Iraq freight and logistics market. Road freight transport operations represent 70.58% of that pool because of route flexibility and minimal rail competition. The Ministry of Construction and Housing is resurfacing 4,000 km of highways, raising average speeds and lowering tyre wear. Courier, express, and parcel (CEP) services, though smaller, will expand fastest at a 2.37% CAGR (2025-2030) as e-commerce widens beyond Baghdad into Mosul and Basra.

Sea and inland waterways freight transport hold second-place status, supported by dredging at Umm Qasr and by Al Faw’s multi-berth roll-out. The warehousing and storage segment is moving from basic sheds to mezzanine-equipped distribution centers with WMS dashboards that track SKU velocity. Freight forwarders are bundling customs brokerage with cross-dock trans-loading under single‐window contracts that reassure multinationals new to Iraq.

The Iraq Freight and Logistics Market Report is Segmented by End User Industry (Agriculture, Fishing, and Forestry, Construction, Manufacturing, Oil and Gas, Mining and Quarrying, Wholesale and Retail Trade, and More) and by Logistics Function (Courier, Express, and Parcel (CEP), Freight Forwarding, Freight Transport, Warehousing and Storage, and Other Services). The Market Forecasts are Provided in Terms of Value (USD).

List of Companies Covered in this Report:

1. A.P. Moller - Maersk
2. Al Hilal Logistics
3. Al-Rashed Intl. Shipping Co. (Including Al-Rashed United Shipping Services Co.)
4. Aramex
5. Arch Star Global Logistics
6. CMA CGM Group (Including CEVA Logistics)
7. Crown Logistics, Ltd.
8. Daleel Al-Sahraa
9. DHL Group
10. DSV A/S (Including DB Schenker)
11. FedEx
12. GAC Group (Holdings), Ltd.
13. Imsan Group (Including IMS Logistics)
14. Iraqi Airways
15. Mateen Express
16. Naseem Umm Qasr LLC
17. Nasr Al-Rafedain
18. Sandoog, Ltd.
19. Silkroad Logistics
20. The MSC Group (Including Mediterranean Shipping Company)
21. United Trance

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support