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India banks on US$9 billion mega port to reboot its Europe trade corridor plans
- India’s belt and road rival stalled amid Israel’s Gaza war. A huge new deep water port aims to kick-start it again
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India is placing a US$9 billion bet on reviving its transformative trade corridor to Europe, announcing plans for one of the world’s largest ports to anchor the ambitious project.
The deepwater facility being built in Vadhavan, western India’s Maharashtra state, for 762 billion rupees “will be an integral part of the India-Middle East-Europe Economic Corridor”, Information and Broadcasting Minister Ashwini Vaishnaw told reporters on June 19.
When completed by 2036, it is set to rank among the top 10 ports globally, boasting an unprecedented nine container terminals and the country’s biggest handling capacity. India’s government projects the public-private partnership will create 1.2 million jobs and make long-haul cargo transport far more cost-effective.
The IMEC, which was launched on the sidelines of September’s G20 summit in the Indian capital of New Delhi, has potential to reshape regional trade dynamics, likely drawing support from Western nations eyeing it as a counterweight to China’s Belt and Road Initiative, analysts say.
It aims to build a seamless logistical corridor linking India to southern Europe via ports, railways and roads in the United Arab Emirates, Saudi Arabia, Jordan and Israel.
Sceptics dismissed the IMEC as a virtual non-starter following the outbreak of the Israel-Gaza conflict just a month after its initial announcement. The sheer complexity of building cross-border connectivity through regions engulfed in military conflict seemed an insurmountable challenge.
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