NEWS – An Indian delegation recently paid a visit to the UAE for the first time to hold discussions with the key entities there on the India-Middle East-Europe Economic Corridor (IMEEC)

INDIA-MIDDLE EAST-EUROPE ECONOMIC CORRIDOR (IMEEC)

The India-Middle East-Europe Economic Corridor (IMEC), announced in February 2023 during G20 meet , aims to create a multi-billion-dollar trade route integrating parts of Asia, Europe, and the Middle East. Officials are still finalizing details, considering multiple route options, and addressing various challenges.

Proposed Routes and Ports

• India: Potential ports include Mundra (Gujarat), Kandla (Gujarat), and Jawaharlal Nehru Port Trust (Navi Mumbai).
• Middle East: Key ports include Fujairah, Jebel Ali, and Abu Dhabi (UAE); Dammam and Ras Al Khair (Saudi Arabia).
• Europe: Potential destinations include Haifa (Israel), Piraeus (Greece), Messina (Italy), and Marseille (France).

Connectivity and Construction

• Rail Routes:
  • Fujairah to Haifa: 2,915 km total, with 1,095 km missing; 536 km under construction, 559 km yet to be built.
  • Jebel Ali to Haifa: 2,565 km total, with 745 km missing; 186 km under construction.
  • Abu Dhabi to Haifa: 2,449 km total, with 629 km missing.
  • Dammam to Haifa: 2,149 km total, with 289 km missing.
  • Ras Al Khair to Haifa: 1,809 km total, with 269 km missing.
• Construction Requirements: Includes Brownfield and Greenfield projects to connect missing links, such as the 605-km UAE’s Etihad Rail project from Fujairah to Ghuweifat.

Financial and Technical Challenges

• Cost: Estimated between $3 billion to $8 billion per route.
• Technical Standardization: Uniform train gauges, engine technologies, and container dimensions are necessary for seamless transportation.
• Handling Costs: Increased terminal-handling charges due to multiple cargo transfers between ships and rails.
• Diplomatic Concerns: Potential objections from Egypt, which may lose Suez Canal revenue. Egypt was notably absent from the MoU signatories.

Strategic Implications

• Competition with China: IMEC is seen as a counter to China’s Belt and Road Initiative. However, Chinese companies have significant involvement in related infrastructure, such as Piraeus port and Etihad Rail projects.
• Diplomatic Relations: The IMEC MoU was signed by India, the U.S., Saudi Arabia, UAE, EU, Italy, France, and Germany, excluding Egypt.