Opinion

A new era of connectivity through rail and ports

The rail line, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement the existing multi-modal transport routes

A historic announcement was made on the sidelines of the G20 Summit in the Indian capital of New Delhi on Saturday (September 9) about an ambitious project of a rail-shipping corridor from India to Europe via the Middle East. Named the India-Middle East-Europe Economic Corridor, the new initiative is part of the Partnership for Global Infrastructure Investment, a collaborative effort by G7 nations to fund infrastructure projects in developing countries, and is expected to help bring countries in the Middle East together and establish the region as a hub for economic activities.

Through the new transport corridor, the countries involved aim to usher in a new era of connectivity with a railway, linked through ports connecting Europe, the Middle East, and Asia.

The agreement consists of two distinct shipping corridors -- the East Corridor linking India to West Asia/Middle East and the Northern Corridor connecting West Asia/Middle East to Europe. The two shipping corridors will be linked by a railway track in the Middle East, covering the UAE, Saudi Arabia, Jordan and Israel.

The rail line, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement the existing multi-modal transport routes enhancing the transshipment of goods and services between South East Asia through India to the Middle East and Europe.

Although details of the value of the project were not available, objects of the MoU on the project unveiled jointly by leaders from the United States, European Union, France, Germany, Italy, India, Saudi Arabia and the United Arab Emirates, this ground-breaking initiative is expected to boost manufacturing, food security, and supply chains within its sphere of influence.

“The project will connect commercial hubs, support the development and export of clean energy, lay undersea cables, expand energy grids and telecommunication lines, promote clean energy technology, and enhance Internet access for communities, ensuring stability and security”, a fact sheet released by the White House outlined.

The railway network in the corridor is designed to provide reliable and cost-effective cross-border ship-to-rail transit, complementing existing maritime and road transport routes. This railway route, primarily traversing the Middle East, includes plans for laying electricity cables and clean hydrogen pipelines.

'Along the railway route, participants intend to enable the laying of cable for electricity and digital connectivity, as well as pipe for clean hydrogen export. This corridor will secure regional supply chains, increase trade accessibility, improve trade facilitation, and support an increased emphasis on environmental social, and government impacts', the MoU document says.

While no official announcement has been made on the detailed route, reports indicate that India will be connected with the UAE through a shipping route.

From the UAE, the rail connectivity will start, going through Saudi Arabia, Jordan and Israel, terminating at the Haifa port. From that Haifa port, it will be again a shipping route towards Italy, from which it will enter Europe. The project will use existing routes and build new networks where needed, like linking Saudi with Israel through Jordan.

In this context, observers stress on the importance of the GCC Railway project, which once on track, stands to significantly gain from the planned rail lines in the new corridor. This rail lines combined will further improve regional and international connectivity, enhance trade flows, and attract more investors.

Oman's strategic placement offers the country substantial advantages, both strategically and economically, and opens up substantial opportunities within the logistics and transportation sector.

The Sultanate of Oman has long had plans to construct a national rail network starting at the UAE border and passing through Suhar and Muscat in the north before linking up with the port towns of Duqm and Salalah on the country’s coast.

In September 2022 Oman Rail and Etihad Rail signed a $3 billion agreement to build a railway. The new railway entity, Oman-Etihad Rail, established under the agreement will primarily connect Suhar to Abu Dhabi.

Oman is also collaborating with Saudi Arabia for the establishment of a railway link connecting Duqm with Riyadh through the Ibri border. The railway line aims to serve the upcoming economic zone that the two countries are planning to build in the Al Dhahirah governorate.

In July 2021, as part of the Oman National Spatial Strategy, the government unveiled plans to construct the country’s first metro network. The project is planned to connect the commercial districts of Ruwi, the administrative centre of Muttrah and the northern coastal town of Al Seeb via the Muscat International Airport.

The GCC rail line, planned to span over 2,000km, will start from Kuwait City in the north and pass through the coastal cities of Jubail and Dammam in Saudi Arabia, before heading through Manama and Doha, the capital cities of Bahrain and Qatar, respectively.

The line will also pass through the major cities of Abu Dhabi, Dubai and Fujairah, before reaching its terminal station in Muscat.

The Gulf Railways Authority was formed following approvals from the General Secretariat of the GCC in December 2021. Reports indicate that individual countries have been making progress in their respective projects. A report in oilprice.com said that Kuwait has already launched the first phase of the metro project.

In January 2022, Saudi Arabia announced plans to more than triple its rail network’s size by building 8,000 km of track. Progress has also been made on rail projects in the UAE.

The writer is author, journalist and policy analyst with four decades of experience in editing and reporting for newspapers and magazines in India and the Gulf region