An Analysis of an Envisaged Integrated Sea and Rail Route as Part of The Indian Middle East Europe Corridor

Abstract

The India-Middle East-Europe Economic Corridor is a project announced at the G20 Summit in September 2023 that aims to boost economic development by connecting seaports and railways to improve connectivity and economic integration between Asia, the Middle East and Europe. The proposed corridor would connect India and Greece by sea from Mumbai Port to Jebel Ali Port, followed by rail via Saudi Arabia and Jordan to Haifa Port in Israel, and finally by sea from Haifa Port to Piraeus Port in Greece. However, this project may face many challenges and obstacles that may prevent implementing it. This study examines the feasibility of shifting from deep-sea shipping to sea and rail transporting mode via the proposed IMEC project. The study addresses four key objectives: first, understanding the importance of economic corridors; second, evaluating the logistical development along the IMEC route; third, comparing the costs and transit times of transporting 20-ft containers from Mumbai port to Piraeus port via the IMEC, the Suez Canal, and the Cape of Good Hope; and fourth, comparing CO2 emissions using these routes. A mixed methodology was employed. The qualitative method involved a literature review of case studies on economic corridors and the IMEC project, while the quantitative method used MATLAB software for simulation to analyse costs, transit times, and CO2 emissions. This paper findings suggested that the economic corridors have greatly improved transportation by reducing costs, travel times, and pollution. However, the IMEC route is not yet logistically ready due to missing rail links and the need for ports automation. Additionally, the IMEC transport costs are three times more expensive than the Suez Canal and twice more than the Cape of Good Hope, primarily due to the rail freight. Nevertheless, the IMEC is more efficient in transit times, reducing durations up to 20% compared to the Suez Canal and 75% compared to the Cape of Good Hope. Furthermore, the IMEC significantly lowering CO2 emissions by 30-40% compared to the Suez Canal and 80% compared to the Cape of Good Hope. Hence, the transition from deep-sea shipping to sea and rail transporting, facilitated by the IMEC, is feasible, especially for industries that value timeliness and environmental sustainability. However, this paper recommends investing in port automation and developing rail infrastructure to reduce operational expenses to achieve cost effectiveness of the IMEC route freight transport.