Afaq Hussain and Nicholas Shafer
Launched at the 2023 Group of Twenty (G20) summit in New Delhi, the India-Middle East-Europe Economic Corridor (IMEC) features three pillars that integrate existing and future infrastructure: a transportation pillar—the corridor’s backbone—integrating rail and maritime networks, an energy pillar with interconnected energy and electricity infrastructure across continents, and a digital pillar providing new fiber-optic cables and cross-border digital infrastructure.
The corridor is well placed to be a consequential regional integration and infrastructure initiative in the coming decades, reinforcing supply chain security and aligning Eurasian policy around open, rules-based connectivity, supported by market-driven, locally funded investment from a diverse set of countries. IMEC also provides an alternative to existing corridors dominated by a single government, particularly the Belt and Road Initiative.
The transportation corridor plan has a financing gap of approximately $5 billion to become minimally operational, linking Gulf ports to Haifa, Israel. Most of the unmet costs are in Jordan, Israel, and logistics hubs likely at Haradh, in the Kingdom of Saudi Arabia (linking KSA-United Arab Emirates); al-Haditha, KSA (KSA-Jordan); Mafraq, the Jordan logistics hub, and near Beit She’an in Israel (Jordan-Israel).
The corridor would have the capacity to move about forty-six trains daily carrying 1.5 million storage containers (TEUs) annually on single-stack cargo rail, with the ability to scale up to 3 million TEUs in the future, with both double-stack cargo rail and the additional integration of Ashdod Port enabling greater throughput into the Eastern Mediterranean. The upper ceiling of trade volume carried on IMEC could reach even higher, as it is only constrained by the laying of additional rail lines and port capacity, which could be expanded both by additional rail investments and integrating additional countries into IMEC.
Transshipment times via the transportation corridor could be reduced by about 40 percent (to twelve-plus days) relative to maritime routes, generating approximately $5.4 billion in annual savings on Asia-Europe trade traveling the route. The corridor also would provide stronger access to international markets for countries along the route and increase export competitiveness. For India alone, IMEC could generate an overall increase of between 5 percent and 8 percent in Indian export valuation, returning $21.85 billion of additional Indian exports annually.