G20: India, US, EU, Saudi unveil crucial trans-national rail & shipping corridor deal

New Delhi: Prime Minister Narendra Modi announced a trans-national shipping and rail transportation corridor that will link countries across the Middle East, South Asia and Europe on the sidelines of the ongoing G20 Summit in New Delhi on Saturday. “Strong connectivity and infrastructure is the base of development of humanity. India has prioritised this in its developmental journey,” said Modi while addressing the Partnership for Global Infrastructure Investment (PGII) conference with G20 leaders.

The plan will lead to the development of a comprehensive rail and shipping connectivity network which will link the US, India, Saudi Arabia and Gulf and Arab states and the European Union. A Memorandum of Understanding (MoU) was also signed to explore a shipping and rail transportation network that will enable the flow of commerce, energy and data in India across the Middle East all the way to Europe.

What is the significance of this Shipping, Rail corridor linking India, US, gulf & Europe?

The Rail and shipping corridor will not only cut down the shipping time and cost of transportation in the region it aims to connect, but will also be an alternative to China’s Belt and Road project. China’s BRI project has left a host of developing countries such as Pakistan, Kenya, Zambia, Laos and Mongolia, in deep debt. The new corridor will increase the flow of energy, trade and digital communications and will counter China’s influence in the region. “First, it is not just the Railway project, it is shipping and Railway project and it is important for people to understand how expansive, ambitious and ground-breaking this will be,” said Jon Finer, US Deputy National Security Advisor.

The rail link will make trade between Indian and Europe nearly 40 percent faster, said European Commission President Ursula von der Leyen.

What does the plan aim to do?

The plan is aimed at integrating railway routes and port linkages, spanning from India to Europe, traversing through the United Arab Emirates (UAE), Saudi Arabia, Jordan, and Israel. Furthermore, the initiative will focus on the advancement of energy infrastructure, facilitating the production and transportation of environmentally-friendly green hydrogen to all participating nations. As part of the plan, there is also a provision for improving telecommunications and data connectivity through the deployment of a new undersea cable connecting the entire region.

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