Saudi Arabia, US sign MoU for corridor linking Asia, Gulf, Europe: Everything to know

[The SC]

Saudi Arabian Crown Prince Mohammed bin Salman Al Saud and U.S. President Joe Biden shake hands next to Indian Prime Minister Narendra Modi on the day of the G20 summit in New Delhi, India, September 9, 2023. (Reuters)


September 9, 2023

Saudi Arabia and the US signed a memorandum of understanding to establish the India – Middle East – Europe Economic Corridor (IMEC). The Crown Prince Mohammed bin Salman made the announcement on the sidelines of the G20 summit held in New Delhi.

Here’s everything you need to know:

The MoU was signed by Saudi Arabia, the US, the EU, India, UAE, France, Germany, and Italy. It states that the IMEC is expected to stimulate economic development through enhanced connectivity and economic integration between Asia, the Gulf, and Europe.

The IMEC will be comprised of two separate corridors, the east one connecting India to the Gulf and the northern one connecting the Gulf to Europe.

It will also include a railway that “will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime and road transport routes – enabling goods and services to transit to, from, and between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe,” according to the MoU.

“Along the railway route, Participants intend to enable the laying of cable for electricity and digital connectivity, as well as pipe for clean hydrogen export. This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts,” the MoU stated.

The participating countries expect the corridor to “increase efficiencies, reduce costs, enhance economic unity, generate jobs, and lower greenhouse gas emissions – – resulting in a transformative integration of Asia, Europe and the Middle East.”

Saudi Arabia’s state news agency SPA reported: “This project aims to facilitate the transit of renewable electricity and clean hydrogen via transmission cables and pipelines as well as constructing rail linkages. It is also intended to enhance energy security, support efforts for the development of clean energy, promote digital economy through digital connectivity and transmission of data via fiber cables, and promote trade and transport of goods by rail and through ports.”

Saudi analyst Ali Shihabi said on platform X: “This fits in with Saudi plans to develop the Kingdom into a logistical hub serving West Asia, Europe, ME and East Africa.”

The White House said in a statement: “The transformative partnership has the potential to usher in a new era of connectivity from Europe to Asia with a railway, linked through ports, connected by the Middle East. This will create novel interconnections to facilitate global trade, expand reliable access to electricity, facilitate clean energy distribution, and strengthen telecommunications links.”

According to the White House fact sheet, the founding partners of the project intend to work with international partners and the private sector to: “Connect India to Europe—linked by a railway line and existing ports through the UAE, Saudi Arabia, Jordan, and Israel—that will generate economic growth while incentivizing new investments and the creation of quality jobs.”

Additionally, the founding countries will aim to: “Connect two continents to commercial hubs and facilitate the development and export of clean energy. Support existing trade and manufacturing synergies and strengthen food security and supply chains. And Link energy grids and telecommunication lines through undersea cables to expand reliable access to electricity, enabling innovation of advanced clean energy technology and connect communities to secure and stable Internet.”

Israel’s Prime Minister Benjamin Netanyahu hailed the announcement of the corridor as a “major development”, according to the Times of Israel. He described the initiative as “a cooperation project that is the greatest in our history” and one that “takes us to a new era of regional and global integration and cooperation, unprecedented and unique in its scope.”

He added that the new corridor “will bring to fruition a years-long vision that will change the face of the Middle East and of Israel.”


https://english.alarabiya.net/News/...r-linking-Asia-Gulf-Europe-Everything-to-know


Read more:

MBS announces MoU for economic corridor linking Saudi, India, Middle East and Europe

Saudi Arabia and US sign MoU for intercontinental green corridors

G20: Indian PM Narendra Modi receives Saudi Crown Prince MBS with warm embrace

 

[Ali_Baba]

Wouldn’t Jordan be needed also to be part of this agreement?

 

[The SC]

The Daily Star website, citing officials: The economic corridor project announced by the Saudi Crown Prince at the G20 summit will reduce shipping times, costs, and diesel use and make trade faster and cheaper..

Wouldn’t Jordan be needed also to be part of this agreement?

It is in too..read the article again..

And also Turkey in an indirect role..

 

[SaadH]

Sea land and then sea. Goodluck saving money on this. This is just a vanity project of MBS and Modi.

 

[FuturePAF]

Wouldn’t Jordan be needed also to be part of this agreement?

Indeed. The infrastructure in Israel and Saudi as well as the UAE are already there. A rail section needs to be built in Jordan to link it all together as well as work out how to run the ports at either end quickly.

This would actually help China’s BRI efforts; especially the port modernization) because China can steal the thunder of this announcement by signing a deal to modernize the Iraqi and Syrian railways and linking them to Turkey. A faster ALTERNATIVE route to the Riyadh/Jordan/Israel if you take into account the sea leg to Europe.

A route from Kuwait to Baghdad then across to Raqaa then Aleppo and up to Turkey and directing into the heart of Europe (bypassing Greece) via the Balkans would reach the markets of Europe, faster than bypassing Turkey by sea, especially if the end goal is Germany as in the picture.

This is something the Turks and Chinese should discuss with the Iraqis and Syrians as a counter to this new IMEC corridor.

China's 'Belt and Road' Risk in Syria May Reap Big Rewards

www.voanews.com

Iraq Ties Itself to China Via Belt & Road Rail Links Between Basra and Iran's Shalamcheh - Silk Road Briefing

Route helps solve a regional bottleneck and links Iraq to China and Iran to the Mediterranean A short, yet vital 30km railway line that will link the Iraqi city of Basra to the Iranian border city of Shalamcheh has been described as “historic”, showcasing a new era of Iran/Iraqi detente, linking...

www.silkroadbriefing.com

P.S. If the GCC wants to not participate the Chinese can help build up the port in Basra to be the starting point, independently of the GCC.

2nd P.S. For Turkey, this would also make them more independent of Iran for Eastern rail based trade.

 

[The SC]

Someone seems happy about this!​

Statement from Prime Minister Benjamin Netanyahu, 9 September ​

https://www.gov.il/en/departments/news/epmcorridor​

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[hyperman]

Its a BS project that likely will never come to fruition, several other paths are already present that are more developed, and there a bunch of geopolitical obstacles to this path.

 

[FuturePAF]

Its a BS project that likely will never come to fruition, several other paths are already present that are more developed, and there a bunch of geopolitical obstacles to this path.

Other than the Jordanian section, all the other railways are already there. this is a new label on existing infrastructure under a new political agreement.

Basically it seems this indicating SA will recognize Israel soon.

 

[hyperman]

Other than the Jordanian section, all the other railways are already there. this is a new label on existing infrastructure under a new political agreement.

Basically it seems this indicating SA will recognize Israel soon.

Yes and that jordanian section is the most important section, It requires a rail link from Jordan, through the West Bank and through Israel, which just ain't happening under the current circumstances.

Of Course the zionists are promoting this project and you can see Biden supporting it, but its far from reality.

Whereas the Saudi section to the Egyptian connection is far more viable. hell a connection from Saudi to Turkey via Iraq(shia areas in the south east through the KRG, following the same route as the Iraq Turkey pipeline) is more viable than anything crossing the west bank.

 

[Edevelop]

India and failed projects haha. Money invested in Afghanistan...failure. Money spent in Chahbahar, Iran... failure. This India-Middle East corridor is destined to be a failure just like the planned corridor from India to Russia was a failure. Basically, anything minus Pakistan is a failure.

 

[Shapur Zol Aktaf]

Sea land and then sea. Goodluck saving money on this. This is just a vanity project of MBS and Modi.

This comes from the brain of farting president biden and netanyahu to replace suez by Haifa and to make saudi arabia recognize the occupying regime.
The transit gibberish is just the paper wrapped around these ideas/goals.

 

[Puffin]

Sea land and then sea. Goodluck saving money on this. This is just a vanity project of MBS and Modi.

You are not living in the 19th centaury. The quick and efficient way that transfers happen via containerised AI mediated is mind blowing. Today we can transfer a countries six months of trade volume within a day if needs be.

This comes from the brain of farting president biden

His shaking pinkie finger would reduce your country into a desolate moonscape in minutes. There would be no memory of a country called Iran.

 

[epebble]

Sea land and then sea. Goodluck saving money on this. This is just a vanity project of MBS and Modi.

I am willing to bet a few bucks that this is vaporware. Not different from the fabled BRI. King of transport today is container shipping and air cargo. Rail plays second fiddle for inland distribution. Anything involving transshipment is dead on arrival.

 

[Abdul Rehman Majeed]

I am willing to bet a few bucks that this is vaporware. Not different from the fabled BRI. King of transport today is container shipping and air cargo. Rail plays second fiddle for inland distribution. Anything involving transshipment is dead on arrival.

From ship to train to truck: Where the action is in transports​

From ship to train to truck: Where the action is in transports

With nearly 25 million containers moving via "intermodal" transport each year, it's the fastest-growing part of the freight business.

www.cnbc.com

 

[SaadH]

You are not living in the 19th centaury. The quick and efficient way that transfers happen via containerised AI mediated is mind blowing. Today we can transfer a countries six months of trade volume within a day if needs be.

Sure, we'll see if Egypt plays hardball by lowering the transit fee, allowing non Indian shippers to continue using Suez, instead of this Saudi/Indian/Israeli turd.

BTW, speaking of AI managed systems, I'm sure a bona fide IIT graduate such as yourself ought to know that the more variables you introduce into a system, i.e. more nodes you add to a transportation network, the more you open yourself up to potential problems. Also if israelis are involved then it's rather idiotic to keep Saudis in the loop, should have just bypassed them and shipped directly to Israel and from there onto Europe.