Prime Minister of India on 9 September announced the launch of the India-Middle East-Europe mega economic corridor on the side-lines of G-20 summit.
Key points
- The rail and shipping corridor is part of the Partnership for Global Infrastructure Investment (PGII) — a collaborative effort by G7 nations to fund infrastructure projects in developing nations.
- PGII is considered to be the bloc’s counter to China’s Belt and Road Initiative.
- The project includes India, the UAE, Saudi Arabia, the European Union, France, Italy, Germany and the US. Proposed by the leaders of India, US, UAE, Saudi Arabia and joined now by leaders of Italy, Germany and France, the Middle-East corridor will be completed in phases with the rail engines to be powered by solar energy in the final stages.
- The Middle-East corridor project envisages movement of goods through standardized containers from India to Fujairah Port on the eastern seaboard of UAE and then to Port of Haifa in Israel through 2650 kilometer of railroad via Saudi Arabia and Jordan.
- Some 1,850 kilometers of railroad is already functioning between the two countries with Saudi Arabia planning to build the remaining portion so that the goods reach the Port of Haifa.
- From there, the goods from India and other countries in the sub-continent like Nepal and Bangladesh will be shipped to various ports in Europe including Italy, Germany and France.
- The middle-east corridor will be a rail bridge to send goods from Vietnam to India via Myanmar and Bangladesh in future and ensure that the Indian goods hit European destinations within a matter of seventy two hours.
- The containers will be standard sized and will be shipped to Fujairah and Haifa ports.
- The Haifa port in Israel is currently being operated and upgraded by an Indian company. The project will aim to enable greater trade among the involved countries, including energy products.
