Introduction to IMEE Corridor:
It stands for India-Middle East-Europe Corridor. Originating from Mumbai, goods will be shipped to Dubai, then railed to Haifa Port in Israel, and finally shipped to Piraeus in Greece, then transported to Hamburg, Germany.
Type of Corridor:
Initially a logistics corridor, the vision is to transform it into an economic corridor, enhancing trade among all participating countries.
Comparison with China’s BRI:
China’s Belt-and-Road Initiative (BRI) was vast and promised long-term funds for infrastructure. However, the IMEE Corridor is distinct, aiming to enhance trade and relations among specific countries.
Logistical Concerns:
A container traveling from Mumbai to Hamburg will be handled at six stations, and border checks are expected across 15 nations within the IMEEC, necessitating a “single-pass” mechanism for efficiency.
Historical Context:
This route is reminiscent of the ancient Spice Route, where Rome traded with India.
Funding Mechanism:
Primarily focused on a new rail line across the Arabian peninsula. The estimated cost is around Rs.78,000 crore, easily fundable by the well-resourced partners. The complete IMEEC might require an outlay of around $20 billion.
Geopolitical Angle:
It’s a clear geopolitical move, showcasing cooperation among friendly countries, differing from single-country dominant initiatives. It bypasses Pakistan and Turkey, opening new routes for India.
Benefits for India:
Includes reduced logistics costs, enhanced trade with new regions, potential involvement in building the rail portion, moving away from the previous India-Iran-Russia INSTC, and strengthening ties with Arab nations.
Soft Issues:
There are bureaucratic impediments to consider, especially in easing cross-border transportation and handling.
Dive into the discussion! Discover more on SRIRAM’s social media platforms.
