On Saturday, 9th September 2023, a groundbreaking agreement was unveiled during the ongoing G20 Summit in Delhi, announcing a rail and shipping corridor from India to Europe via the middle east. Named the ‘India-Middle East-Europe Shipping and Railway Connectivity Corridor,’ the announcement was made by Prime Minister Narendra Modi alongside top global leaders. US President Joe Biden lauded this significant project as ‘a real big deal’.
This ambitious project of a rail-shipping corridor aims to establish India as a significant global hub for international business and commerce by linking India, the Middle East, and the EU. The memorandum of understanding was signed by various countries considering the importance, utility, and grandeur of the project.
Multiple countries signed the MoU
India, the United States, the United Arab Emirates, Saudi Arabia, France, Germany, Italy, and the European Union Commission have jointly signed a Memorandum of Understanding (MoU) to establish the India-Middle East-Europe Economic Corridor (IMEE EC). This initiative aims to foster economic development by bolstering connectivity and economic integration across Asia, the Middle East, and Europe.
The IMEE EC will comprise two distinct shipping corridors: the East Corridor linking India to West Asia/Middle East and the Northern Corridor connecting West Asia/Middle East to Europe. The two shipping corridors will be linked by a railway track in the Middle East, covering UAE, Saudi Arabia, Jordan and Israel.
This comprehensive project, upon full implementation, will establish a dependable and cost-efficient cross-border ship-to-rail transit system. It will complement existing multi-modal transportation routes, facilitating the seamless transhipment of goods and services from Southeast Asia through India to West Asia/Middle East and Europe.
While no official announcement has been made on the detailed route, it is understood that India will be connected with the UAE through a shipping route. From UAE, the rail connectivity will start, going through Saudi Arabia, Jordan and Israel, terminating at the Haifa port. From that Haifa port, it will be again a shipping route towards Italy, from which it will enter Europe. The project will use existing routes and build new networks where needed, like linking Saudi with Israel through Jordan.
It is notable that the Haifa port in Israel was acquired by the Adani group of India along with the Israeli company Gadot in July 2022. Haifa is one of the largest seaports in Israel. Moreover, during his recent Italy visit, PM Narendra Modi held discussions with the Italian govt over the use of the Piraeus port for international trade with EU countries.
Other salient features of the MoU
The Memorandum of Understanding (MoU) paves the way for promoting trade and economic collaboration among the signatory nations. It encompasses various domains, including connectivity, logistics and freight infrastructure, clean energy and hydrogen production, and energy transmission infrastructure. The MoU is expected to catalyze the growth of infrastructure within the logistics and transportation sector, bolstering India’s self-reliance and aligning with key initiatives such as Make in India, Sagarmala, and Atmanirbhar Bharat.
It says, “Along the railway route, Participants intend to enable the laying of cable for electricity and digital connectivity, as well as a pipeline for clean hydrogen export. This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts. Participants intend that the corridor will increase efficiencies, reduce costs, enhance economic unity, generate jobs, and lower greenhouse gas emissions – – resulting in a transformative integration of Asia, Europe and the Middle East.”
Peaceful cooperation
In the past few decades, international collaboration in infrastructure ventures, particularly those related to logistics, transportation, energy transmission, freight, and connectivity, has emerged as a significant means of projecting national power and influence globally and regionally. At times, these vectors serve as instruments to establish a strategic foothold in the region, shape the geopolitical discourse, and potentially disrupt peace and stability with a negative impact on the countries involved.
An illustrative example is China’s Belt and Road Initiative, which ensnared countries like Pakistan and Sri Lanka, resulting in financial distress and dependency on China. India took the initiative to assist Sri Lanka in its recovery efforts, while Pakistan is still grappling with internal instability. In this context, India’s collaboration with the Middle East, EU, and USA to develop this corridor signifies its commitment to peaceful cooperation that benefits all stakeholders involved.
Connectivity and financial stability
Fostering connectivity with nations, whether in close proximity or afar, has long been a fundamental focus for India, rooted in its rich civilisational heritage. India has consistently emphasised investment, cooperation, and the establishment of connectivity as integral elements of its vision of “One Earth, One Family, One Future.”
As India extends connectivity, it also guarantees that such initiatives adhere to principles of consultation, transparency, and inclusivity while respecting the sovereignty and territorial integrity of all nations participating in the combined projects. India’s initiatives also essentially uphold principles of financial responsibility and economic sustainability to prevent the accumulation of unsustainable debt by collaborating countries, all while complying with ecological and environmental standards.
Takeaways to India from the participation in the multinational project
India has actively collaborated with numerous countries across the mentioned regions in development cooperation, particularly in infrastructure development projects. The aim is to participate in projects related to regional infrastructure connectivity, serving as emblematic examples of an alternative approach. This strategy solidifies India’s partnerships with significant regional and global stakeholders while opening up fresh prospects for our industries and businesses to integrate into international trade and logistics networks.
Keeping the aforementioned considerations in focus, the parties to the Memorandum of Understanding (MoU) have initiated discussions aimed at cooperating in the establishment of a multi-modal transport corridor. This corridor is designed to connect the economies of Southeast Asia to Europe, with India, the Gulf, and the Middle East serving as pivotal transit points.
The importance of India’s participation in IMEE EC lies in India’s expertise in operating complex networks in challenging situations. Laying down railway tracks across the desert in the gulf and the other difficult terrains is where India will be at the forefront.
India is situated in a position of crucial geographical advantage
The ‘India-Middle East-Europe Shipping and Railway Connectivity Corridor’ (IMEE EC) holds immense promise for India, firmly positioning it along the trade route spanning South East Asia to the Gulf, West Asia, and Europe. This strategic placement offers India substantial advantages, both strategically and economically, and opens up substantial opportunities within the logistics and transportation sector. Furthermore, it offers a more efficient and cost-effective transit option, bolstering India’s trade and export activities.
This corridor can be developed with a focus on sustainability, aligning with India’s green transition goals, elevating the nation’s regional prominence, and enabling Indian enterprises to participate equitably in infrastructure development. Additionally, the corridor promises to secure supply chains, generate employment opportunities, and enhance trade facilitation and accessibility.
What next?
According to the MoU, the participant countries are expected to meet again on this issue within the next two months and deliberate over the next steps of developing this ‘India-Middle East-Europe Economic Corridor’ (IMEE EC). The MoU said, “It sets forth political commitments of the Participants and does not create rights or obligations under international law. The Participants intend to meet within the next sixty days to develop and commit to an action plan with relevant timetables.”
