Page 16 - ITLN November - December 2023 for the magzter

Special Report
IMEC

cost-effective cross-border ship-to-rail ships pass through the 193 km long and
transit network to supplement existing 200-metre-wide canal, on a daily basis.
maritime and road transport routes – In 2022, over 23,000 ships traversed
enabling goods and services to transit to, through the international waterways.
from, and between India, the UAE, Saudi Given this volume, the Suez Canal has
Arabia, Jordan, Israel, and Europe.” now started facing issues in handling
Chandramohan is not alone in large ships, including the mega 24,000
articulating the corridor's importance TEU vessels. The average time to cross
to India and its need above the existing the canal has also increased to up to
trade routes. For instance, according 16 hours, on average. Currently, the
to Pushpank Kaushik, chief executive Suez Canal is the only exit available to
officer of Jassper Shipping, IMEC stands the Mediterranean and is also a very
apart from other alternatives, such as long one - Mumbai to the port of Suez
the current flow of goods through the is about 3,195 nautical miles (about
Suez Canal or the planned route of the Unlike the Suez 6,000 km) and ships take on an average
Chabahar Port. Canal, which is between 13-15 days at sea to reach.
He said, “Unlike the Suez Canal, From the Suez Port to European ports,
which is susceptible to closures susceptible to closures across the Mediterranean on traditional
and disruptions due to political or and disruptions well-identified navigational grids is
environmental factors, IMEC offers due to political or another long journey,” he observes.
more stable and secure trade routes. environmental factors, In comparison to the longer distance
Furthermore, while the Chabahar IMEC offers more and transit time via the southern Suez
Port is primarily intended to serve stable and secure trade route and the northern Trans Asian
as a regional hub for Central Asian routes. Railway (TAR) route, according to
countries, IMEC will provide a more Mehta, the IMEC is set to become the
comprehensive and integrated Pushpank Kaushik preferred corridor.
transportation network, connecting Jassper Shipping Beyond its economic benefits,
India, the Middle East, and Europe.” Kaushik expects IMEC to have a
Kaushik thinks that IMEC can On the same line, Rajesh Mehta, positive impact on the political and
make made-in-India products more CCSO & executive director, Liladhar strategic relationships between India,
competitive in the global market. Pasoo Group, pointed out that the the UAE, Saudi Arabia, and Israel in
As he puts it, “IMEC is poised to corridor will bring down the dependency an increasingly complicated
offer India a shorter and more efficient on the Suez Canal and will also geopolitical landscape.
trade route to Europe and the rest strategically position India at the centre “It will also strengthen India's ties
of the world, resulting in reduced of the corridor, connecting it to Europe with the Middle East, particularly with
transportation and logistics costs, thus and the Middle East. the UAE and Saudi Arabia,” he said.
enhancing the competitiveness of Indian “Currently, cargo movement from This is very important, particularly in
goods in the global market.” western Indian ports travels through the context of the ongoing wars in the
He also opines that the corridor will the Arabian Sea, circles the Arabian Middle East and Europe and as many
increase investment between India, the Peninsula, enters the Gulf of Aden, sails people see it as a counter to China's
Middle East, and Europe by providing through the Red Sea, and exits into the
faster transportation options for Mediterranean Sea through the Suez
companies to expand across borders. Canal. As per data, approximately 90
“The special economic zones along
the corridor will attract businesses,
create jobs, and drive economic
growth,” he added.

Saudi Arabia Railways

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