Introduction

Amid ongoing attacks on Israel-linked ships by Yemen’s Houthi rebels in the Red Sea, Israeli Transport Minister Miri Regev has announced an alternative trade route via the Mundra port in Gujarat.
The route aligns with the India Middle East Europe Economic Corridor (IMEC) project, aiming to link India to Europe via the Middle East.

Why discuss this?

Houthi Attacks: Houthi rebels in Yemen have been targeting ships connected to Israel in solidarity with Gaza, leading to disruptions in global trade, with about 12% passing through the Red Sea.
Industry Response: A recent industry agreement grants seafarers the right to refuse to sail through the Red Sea due to safety concerns, further highlighting the gravity of the situation.

Overview: Minister Regev outlined the new trade route in a video from the Mundra port. Goods will travel from Mundra to UAE ports, then proceed by land through Saudi Arabia and Jordan to Israel, primarily using trucks.
Operational Details: Israeli company Trucknet and UAE’s PureTrans will operate the trucks transporting goods. This route bypasses the Red Sea, ensuring safer passage amidst escalating tensions.

	Details
Corridors	East Corridor: Connects India to the Arabian Gulf. Northern Corridor: Connects the Gulf to Europe.
Infrastructure	Railroad, Ship-to-Rail networks, and Road transport routes. Includes an electricity cable, a hydrogen pipeline, and a high-speed data cable.
Signatories	India, the US, Saudi Arabia, UAE, the European Union, Italy, France, and Germany.
Ports Connected	India: Mundra (Gujarat), Kandla (Gujarat), Jawaharlal Nehru Port Trust (Navi Mumbai). Middle East: Fujairah, Jebel Ali, and Abu Dhabi in the UAE, as well as Dammam and Ras Al Khair ports in Saudi Arabia.
Railway Route	Connects Fujairah port (UAE) to Haifa port (Israel) via Saudi Arabia (Ghuwaifat and Haradh) and Jordan. Israel: Haifa port. Europe: Piraeus port in Greece, Messina in South Italy, and Marseille in France.

Benefits: The land route promises reduced travel time and costs for Israel, while generating revenue for Saudi Arabia and Jordan through transport fees and duties.
Challenges: Trucks have limited capacity compared to ships, potentially limiting trade volume. Additionally, the route’s viability hinges on stable diplomatic relations between Israel and the transit countries.
Long-term Prospects: The route aligns with the India Middle East Europe Economic Corridor (IMEC) project, aiming to link India to Europe via the Middle East. However, the project’s progress may face hurdles due to ongoing conflicts.

Israel’s initiative to establish an alternative trade route reflects its adaptability amidst regional challenges. While offering immediate relief from Red Sea disruptions, the long-term success of the route depends on diplomatic stability and infrastructure development in the transit countries.
Despite its limitations, the new route underscores the importance of innovation and collaboration in navigating complex geopolitical scenarios, ensuring continuity in global trade operations.