The missing links in IMEC, as shown by the Gaza war

• India and Iran finally signed a 10-year long-term bilateral contract for the operation of Chabahar Port - it was inked between the Indian Ports Global Limited and the Port and Maritime Organisation of Iran.
• It is a critical economic route that links India with Afghanistan and the Central Asian countries.

KEY HIGHLIGHTS

• A similar, and equally important, connectivity project, the IMEC, or the India-Middle East-Europe Corridor,
  • was signed on the sidelines of the G-20 summit in New Delhi on September 9, 2023 by the
  • European Union, France, Germany, India, Italy, Saudi Arabia, the United Arab Emirates (UAE) and the United States.

As a counter to the BRI

• The IMEC will comprise two separate corridors —
  • an east corridor connecting India to the Arabian Gulf and
  • a northern corridor connecting the Arabian Gulf to Europe.
• In addition to existing maritime and road transport routes, it will include a railway network that aims to be a reliable and cost-effective cross-border ship-to-rail transit network for goods and services to transit.
• The corridor also envisages along the railway route, the laying of cable for electricity and digital connectivity and a pipeline for clean hydrogen export.
• In its plan, the Indian ports of Kandla, Mumbai and Mundra will be connected by sea links to Fujairah, Jebel Ali and Abu Dhabi in the UAE in the east,
  • followed by the rail-road link through Saudi Arabia and Jordan and onwards to Europe in the west by the port of Haifa in Israel, and
  • along with the ports in Marseille in France, Messina in Italy and Piraeus in Greece.
• This 4,800 kilometer-long IMEC corridor aims to secure regional supply chains, increase trade accessibility and improve trade facilitation across regions.
• Currently, much of the trade between India and Europe is through the Suez Canal.
  • The IMEC will thus help overcome this obstacle and also cut down on the time, distance and costs of transit of goods from India to Europe significantly.
  • It is estimated that the time and cost of transporting goods to Europe from India will be reduced by 40% and 30%, respectively.
  • It is also being touted as an effective counter to China’s Belt and Road Initiative (BRI) in the region — and, therefore, has the U.S. as one of its major stakeholders.

The shadow of the Gaza war

• External Affairs Minister acknowledged that the delay in implementation of the IMEC in view of the current situation in West Asia
• However, the Gaza war has amply proven that the IMEC has serious missing links in its current form.
• During the course of this war, the Houthis in Yemen have blocked the ships of Israel and its western allies from access to the Red Sea.
• Iran has also repeatedly threatened to close the Strait of Hormuz in the north through which most crude oil and natural gas is shipped to other parts of the world, including India.
• In Israel, two of its major ports, Eilat and Haifa, have suffered heavy losses due to disruption in trade through the Red Sea and also the targeting of these critical ports by Hamas and its allies.
• A consortium led by India’s Adani Group purchased Haifa port in January 2023, expecting an expansion and an increase in traffic but the Gaza war has put everything on hold.

On Oman and Egypt

• Its ports open up into the Arabian Sea, well away from direct influence of an Iranian threat.
• It also offers the closest and direct link to ports in India.
• Oman is also an acceptable partner politically in the region as it has good relations with all stakeholders, including Israel.
• Similarly, towards the West, instead of the ports of Israel, there has to be an alternate route of the IMEC through Egypt and ending at any of its major ports in the Mediterranean Sea
  • This will provide a safe and direct sea route to ports in Europe.
• Egypt is also a major player in West Asia and its inclusion will only help balance out the regional dynamics too.
• Like Oman, Egypt has good relations within the region and with Europe, Israel and the U.S.