Indian Railways Plans to Connect 8 Ports In West Cost with $52 Bn for IMEEC Corridor

IMEEC (India Middle East Europe Economic Corridor ) commences the USD 52 billion railway transit network that will connect 8 ports on the West Coast of India. IMEEC is to transport goods from Indian ports to Fujairah in the UAE by ship and move the containers by train to Haifa in Israel. From Israel, the containers will be shipped to Europe.  

In his remarks, US President Joe Biden has identified IMEEC as a critical project for the region. “The United States and its partners are working to build a better future for the Middle East. One where the Middle East is more stable and better connected with its neighbors,” he said.

Recently an MoU on India-Middle East Europe Economic Corridor was signed on the sidelines of the G20 leaders summit in New Delhi. The multilateral MoU was signed by India USA, Saudi Arabia, UAE, European Union, Italy, France, and Germany. The corridor is expected to reduce transit times making trade with Europe 40% faster compared to the Suez Canal maritime route.

What are the key takeaways from the MoU signed during the G20 summit?

The IMEEC is built to stimulate economic development through enhanced connectivity and economic integration between Asia, the Arabian Gulf, and Europe. The IMEC consists of two separate corridors, the east corridor connecting India to the Arabian Gulf. and the northern corridor connecting the Arabian Gulf to Europe.

The work for the rail transit network has already commenced, and upon completion, it will provide a cost-effective cross-border rail transport network. Alongside building rail routes the participants are required to build electrical and digital infrastructure as well as a pipeline for clean energy export. The participants must work collectively to increase efficiency and reduce the cost.

What is the India-Middle East Europe Corridor? 

The project comes under the Partnership for Global Infrastructure and Investment (PGII). The main objective of the India-Middle Eastern Corridor (IMEC) is to create a comprehensive transportation network, comprising rail, road, and sea routes connecting India, the Middle East, and Europe. In India, the project will be connected with Mundra, Kandla, and Jawaharlal Nehru Port Trust (Navi Mumbai). In the Middle East, it will connect Fujairah, Jebel Ali, and Abu Dhabi. Haifa port in Israel is a key port that connects the Middle East with Europe. In Europe, the project will be connected to Piraeus Port in Greece, Messina in South Italy, and Marseille in France. The project has the potential to counter China’s Belt Road Initiative in the Eurasian Region.