IMEC holds potential to emerge as transformative initiative for Israel: Report

Jerusalem, Aug 11 (IANS) With global shipping lanes facing rising threats, including Houthi attacks in the Red Sea, escalating instability in Gaza and Lebanon, the India–Middle East–Europe Economic Corridor (IMEC) has become a strategic alternative to China's Belt and Road Initiative (BRI), a report cited on Monday.

Announced during the G20 Summit held under India's Presidency in 2023, the IMEC is a comprehensive geo-economic blueprint with a goal to reshape the flow of goods, energy, and data between Asia and Europe.

IMEC, reported The Jerusalem Post, holds the potential to emerge as a transformative initiative for Israel as it not only increases connectivity but also redefines its strategic relevance between Asia and Europe. Israel, it said, must position itself not merely as a transit point but as an active regional contributor in defence and technological innovation,

"The IMEC initiative for Israel serves both as an opportunity and a complex set of security challenges. Israel finds itself at the centre of a new geostrategic vision with a goal to redefine trade routes connecting Asia and Europe... With support from India, the US, the Gulf states, the European Union and Israel, IMEC is seen as a Western-led alternative to China's enhancing sphere of influence. IMEC wants to promote high-speed land-based freight transit, green energy corridors, and next-generation digital connectivity infrastructure," Lauren Dagan Amos, a member of Forum Dvorah, which promotes women in Israel’s foreign and defence policy community, wrote in opinion piece titled 'IMEC and Israel: Strategic promise amid regional instability' in The Jerusalem Post.

Israel, the report mentioned, aims to gain through its central role as a Western anchor of the corridor, using strategic assets like Port of Haifa, the Valley Railway, and planned integration into regional electricity and data infrastructure while its positioning increases Israel's exposure to security threats from state and non-state actors. Israel's inclusion in IMEC, wrote Dvorah, is driven by geographic location and its emerging role as a regional partner, bolstered by the Abraham Accords and its participation in the I2U2 Forum, a grouping of India, Israel, the United Arab Emirates, and the United States.

IMEC's geo-economic promise includes a 40 per cent decrease in transit duration, lower transportation costs and direct connection between Gulf ports and Haifa, enabling smooth rail and maritime transit to European markets. However, the deteriorating regional security environment has resulted in civilian and commercial infrastructure becoming high-value targets, raising significant concerns regarding investment risk.

The conflict in Gaza, Hezbollah's missile threats in Israel and Houthi attacks on shipping in the Red Sea since 2023 have severely impacted regional stability and confidence of investors in the IMEC. Strikes on commercial vessels, especially in the Bab el-Mandab Strait—have forced shipping firms to reroute through the Cape of Good Hope, adding one more week in transit and approximately USD one million in fuel costs per voyage. These disruptions have caused a reduction of estimated 20 per cent in global shipping capacity and rise in insurance premiums.

"Hezbollah's attacks on northern Israel have showcased Port of Haifa's vulnerability, considering its role as the western terminus of IMEC and has contributed to a growing preference among shipping firms for alternative routes. Apart from facing security threats, the IMEC initiative faces regional opposition with Turkey considering IMEC as a geopolitical rival that challenges its strategic position and has started advancing a competing corridor through Iraq. Egypt fears that it might see reduction in revenue from the Suez Canal," the report detailed.

Israel, the writer emphasised, due to the complex environment, needs to develop a comprehensive, multi-layered security framework that includes close strategic coordination with India and Saudi Arabia, especially regarding the protection of critical infrastructure like ports, railways, and energy corridors.

--IANS

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