Middle East Corridor

Middle East Corridor

Middle East Corridor

• • A memorandum of understanding was signed by the European Union and seven nations—India, the United States, Saudi Arabia, the United Arab Emirates (UAE), France, Germany, and Italy—on the fringes of the G20 summit in New Delhi. 
  • It aims to improve trade accessibility, secure regional supply chains, boost economic cooperation, create jobs, and lower greenhouse gas emissions. 
  • The corridor will offer a dependable and affordable cross-border ship-to-rail transit network to support current maritime routes. 
  • The IMEEC will consist of two distinct corridors: the northern corridor, which connects Europe to the Gulf, and the east corridor, which connects India to the Gulf. 
  • In addition to the transportation infrastructure, undersea cables would enable data exchange, and long-distance hydrogen pipelines would support the participants’ climate and decarbonization goals. 
  • The corridor will also include a shipping route that connects Mumbai and Mundra (Gujarat) with the UAE, as well as a rail network that connects the UAE, Saudi Arabia, and Jordan with the Israeli port of Haifa to reach the shores of the Mediterranean Sea.
    

India-Middle East-Europe Economic Corridor (IMEC) Project

• • The IMEC is a component of a larger plan to strengthen ties between nations, lower the cost of transportation, and diversify supply chains. 
  • The corridor aims to capitalize on the strategic locations of India, the Middle East, and Europe to promote trade, economic growth, and political cooperation.
  •  It draws inspiration from historical trade routes like the Silk Road and adapts the concept to modern geopolitical and economic landscapes. 

The railroad, ship-to-rail networks (both sea and land), and road transport routes (and networks) that span two corridors will make up the proposed IMEC: 

• • The East Corridor – connecting India to the Gulf, and
  • The Northern Corridor – connecting the Gulf to Europe

• • Mundra, Kandla, and Jawaharlal Nehru Port Trust (Navi Mumbai) are the ports that could be connected on the west coast of India; the IMEC corridor will also comprise an electricity cable, a hydrogen pipeline, and a high-speed data cable.

At least five ports in the Middle East—Dammam and Ras Al Khair ports in Saudi Arabia, as well as Fujairah, Jebel Ali, and Abu Dhabi in the United Arab Emirates—have been shortlisted to be connected to the Indian ports.

After that, travel to Marseille, France, Messina, South Italy, Piraeus Port, and Haifa [ort] in Israel and Europe.A combination of recently completed greenfield projects and pre-existing brownfield projects will be used to fill in any gaps in the onward rail route connectivity from five ports in the United Arab Emirates and Saudi Arabia to the port of Haifa in Israel. 

Significance of IMEC

• • IMEC would enable the transportation of goods and services from India to the Saudi Arabian Kingdom, Jordan, Israel, the United Arab Emirates, and Europe, and back.
  • All things considered, it is projected that the corridor will strengthen economic cohesion, generate jobs, reduce greenhouse gas emissions, minimize costs, and encourage efficiency (with regard to transit).
  • As a result, a revolutionary integration of Europe, Asia, and the Middle East is expected. 
  • This route could deliver Indian goods from Mumbai to the European mainland in as little as 10 days, which is 40% quicker than using the Suez Canal maritime route. 

Israel-Gulf relations: 

• • There are no formal relations between Saudi Arabia and Israel due to differing opinions on the Israel-Palestine conflict.
  • As formal diplomatic partners of Israel, only Egypt, Jordan, the United Arab Emirates, Bahrain, and Morocco are acknowledged. 
  • This highlights the importance of the transportation network, which strives for complex integration.
    

India-Pakistan relations: 

• • By avoiding Pakistan, IMEC removes the obstacle that it had long imposed on India’s ability to connect overland to the West.
  • In the politically unstable area, it will support regional connectivity and help fortify India’s ties with the Arabian Peninsula.
    

Challenges

• • The corridor travels through areas with intricate geopolitical problems, such as rivalries and conflicts.
  •  Cooperation across the region and diplomatic abilities are needed to overcome these obstacles. 
  • Because of how complex the program is, everything will need to be standardized.
  • For instance, engines must use similar technology, trains must run on the same gauge, and containers must be of similar dimensions. 
  • Key technical elements have been determined, and initial alignments are being finished, to guarantee smooth traffic levels. 
  • However, this will require a great deal of work. 
  • Despite the fact that the IMEC route has been proposed as a reaction to China’s Belt and Road Initiative, Chinese presence cannot be wished away. 
  • This is because the Piraeus port is managed by China Ocean Shipping (Group) Company, a state-owned company in China.
  • Furthermore, a number of packages for China State Construction Engineering Corporation, PowerChina, and other Chinese enterprises have been approved for Etihad Rail’s Phases One and Two.
  • Since it is anticipated that the cargo will land at each location, the all-sea route is practical. It flows freely and without hindrance. 
  • The number of times the cargo is offloaded as it transfers from ship to rail, however, will raise handling costs in the alternatively proposed IMEC. 
  • These costs will include terminal handling charges, container yard charges, and so forth. 
  • Egypt might object to the plan as well because it stands to lose money if the Suez Canal is bypassed.
  • Egypt was not one of the nations that initiated the Memorandum of Understanding (MoU), despite being one of the special invitees to the G-20.