INDIA-MIDDLE EAST-EUROPE ECONOMIC CORRIDOR (IMEEC)

TAG: GS-2: INTERNATIONAL RELATIONS

CONTEXT: The Chennai-Vladivostok eastern maritime corridor has become operational and is carrying oil, food and machines, Minister of Ports, Shipping and Waterways Sarbananda Sonowal said on November 18, 2024, while also saying that India and Greece would work together on the India-Middle East-Europe Economic Corridor (IMEEC) announced last year.

EXPLANATION:

About the Chennai-Vladivostok Maritime Corridor:

The Chennai-Vladivostok eastern maritime corridor became operational at the end of 2023.

• • Trade Benefits:

• • • Reduced cargo transport time from 40 to 24 days.
    • Distance reduction by 40%, facilitating faster and cost-effective trade.

• • Commodities Transported: India imports crude, food, and machinery and exports various goods through this corridor.
  • Ports Involved: Apart from Chennai, Paradip and Vizag ports are connected to the corridor.

About the India-Middle East-Europe Economic Corridor (IMEEC):

• • It was announced on the sidelines of the G20 meeting in New Delhi when a memorandum of understanding was signed between the European Union and seven countries, namely India, the US, Saudi Arabia, the United Arab Emirates (UAE), France, Germany, and Italy.
  • The corridor will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime routes.
  • It intends to increase efficiency, reduce costs, secure regional supply chains, increase trade accessibility, enhance economic cooperation, generate jobs, and lower greenhouse gas emissions.
  • The IMEEC will comprise two separate corridors, the east corridor connecting India to the Gulf and the northern corridor connecting the Gulf to Europe.
  • The corridor will include a shipping route connecting Mumbai and Mundra (Gujarat) with the UAE, and a rail network connecting the UAE, Saudi Arabia, and Jordan with the Israeli port of Haifa to reach the shores of the Mediterranean Sea.
  • Haifa will then be connected by sea to the port of Piraeus in Greece to eventually be connected to Europe.
  • Beyond the transport infrastructure, undersea cables would facilitate the exchange of data, while long-distance hydrogen pipelines would boost the participants’ climate and decarbonization goals.

India’s Maritime Vision 2047:

Goals:

• • To be the top maritime nation among 139 countries across multiple verticals, including port operations, shipbuilding, and cargo handling.
  • Target port handling capacity: 10,000 million metric tonnes per annum by 2047.

Investment: ₹80 lakh crore for port capacity enhancement, shipping, shipbuilding, and inland waterways development.

Key Projects:

• • Vizhinjam International Seaport (Kerala).
  • New mega ports at Vadhavan (Maharashtra) and Galathea Bay (Nicobar Islands).
  • National Maritime Heritage Complex at Lothal, Gujarat.

Sustainability Initiatives:

• • Future Ships: Development of ships running on clean fuels like ammonia, hydrogen, and electricity.

• • Green Shipping: Focus on clean fuel shipbuilding to meet sustainability goals.
  • Ministerial Remarks: Greece’s Minister of Maritime Affairs emphasized shipping’s role in achieving environmental, social, and economic sustainability.

Policy Measures:

Revised Acts:

• • National Waterways Act.
  • Major Port Authority Act.
  • Recycling of Ships Act.
  • Inland Vessel Act.

Upcoming Legislations:

• • • Coastal Shipping Bill: Integrates coastal and inland waterways, boosts shipbuilding and coastal shipping.
    • Merchant Shipping Bill: Enhances ease of doing business in the maritime sector.

India’s Maritime Sector Achievements:

• • Improved Turnaround Time:
    • Reduced from over 40 hours a decade ago to 22 hours, better than countries like the U.S. and Singapore.
  • Global Index Performance: Recognized in the World Bank’s logistics performance index.

Source:

https://www.thehindu.com/news/national/chennai-vladivostok-eastern-maritime-corridor-operational-sonowal/article68882958.ece