At the recent G20 summit in New Delhi, members made a major announcement that could redefine trade and geopolitical relations between India, Europe and the Middle East.
Encouraged by the United States, India has taken the initiative to create a major new logistics corridor, designed to facilitate sea and rail transport between India and Europe via the Middle East.
This ambitious project, supported by several key players such as Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union, aims not only to stimulate trade and investment, but also to offer an alternative to China’s New Silk Roads.
The President of the European Commission, Ursula von der Leyen, stressed that the project was “much more than ‘just’ rail, it’s a bridge between continents”. For his part, US President Joe Biden described the agreement in principle as “historic”.
Aims of This New Project
One of the corridor’s primary objectives is to facilitate the transport of goods between India, the Middle East and Europe. The project envisages the creation of an integrated transport infrastructure, combining maritime and rail elements, to ensure the efficient flow of goods and services.
The project also aims to offer an alternative to the New Silk Roads initiated by China. By creating a more direct and potentially more economical passage between India and Europe, this corridor could reduce the dependence of participating countries on Chinese routes.
India and Europe are two important markets with much to gain from improved connectivity. This logistics corridor could boost trade, encourage investment and create new opportunities for businesses in both regions.
According to the European Commission, the creation of this new sea route could increase the flow of goods between India and Europe by 40%.
Middle East At The Center Of This Road
Although the specific details of the route have not been finalized yet, it is planned that the sea and rail connection will terminate in Marseille and pass through key countries such as Saudi Arabia, the United Arab Emirates and Israel.
The timetable for completion of this ambitious project is not yet clearly defined. However, given the scale and complexity of the project, it is likely to be implemented in several phases, requiring close coordination between the various players involved.
Implementing a project of this scale presents a number of technical challenges, particularly in terms of standardizing transport and logistics systems, managing borders and customs duties, and securing transport routes.
CERL: Your Transport & Logistics partner
CERL is a maritime and air freight forwarder which serves an industrial clientele in particular. Our teams are regularly trained to perfectly master the latest developments in customs, tax and regulatory matters. We manage all formalities related to the export or import of your goods in all ports and airports and whatever your goods.
