Will this multi-modal corridor bring down logistics costs, as compared to the existing Suez Canal route? Wouldn't the Hormuz Strait still be a choke point, posing trade risks?
There are two aspects to the propsed IMEC corridor. Cost of building and the cost advantage after the corridor becomes operative. The two countries involved in this, UAE and Saudi, are not going to be the major beneficiaries. That leaves Jordan, Israel and Greece all of which have limited scope to exploit this more than the rent earning potential of this project which will be due only after the corridor becomes operative. That leaves European partners. They will not have overwhelming advantage after balancing out time gain advantage over cost disadvantage. Corridor is not just about transportation of goods. It is about connectivity which means ability to channel movements of goods as well as energy and communication lines. It is also about strategic derisking by means of creating alternatives. It can also be the means of facilitating the integration of chain of economies which are not very involved in trade etc due to historical and political reasons. Chances of success for any given corridor will be more based on solving the risk perceptions and on opportunities for aligning trade and strategic interests that it will create for countries rather than cost and time considerations alone. Middle Eastern giant economies have identified the need to establish infrastructure, services & soft economy before oil is exhausted. They have vision to transform into a sustainable global economic hub. They want to offer capital and connectivity to attract and support global commerce. They are willing to be partners in creating and servicing the regional network of economic corridors. These networks have commerce, communication and strategic potential to integrate the economies worldwide. In the current assessment the urgency for the newly proposed corridor is not overwhelming. It is more about creating distraction for China's BRI. Interesting days ahead. Good time to speculate. 😴 Satyamev Jayate! 🪷 Jai Hind!! 🫡
Great presentation of well documented facts ! Thank you 😊
Will this multi-modal corridor bring down logistics costs, as compared to the existing Suez Canal route?
Wouldn't the Hormuz Strait still be a choke point, posing trade risks?
THE PRESENT ROUTE IS COST EFFECTIVE AND DURABLE WHY KILL IT, MAKES NO SENSE. CHINA IS ON DECLINE AND WILL BE OUT IN NEXT 30 YEARS
Absolutely fascinating, Rahul .
Excellent Analysis and Collating Historical Truth with facts.
Spice Route of Bharath existed since centuries and centuries old
Yes, it was over 100,000 years old.
Kerala😍😍🙌
finally something positive from William Darylmple
Why do you think he’s been negative?
There are two aspects to the propsed IMEC corridor. Cost of building and the cost advantage after the corridor becomes operative.
The two countries involved in this, UAE and Saudi, are not going to be the major beneficiaries. That leaves Jordan, Israel and Greece all of which have limited scope to exploit this more than the rent earning potential of this project which will be due only after the corridor becomes operative.
That leaves European partners. They will not have overwhelming advantage after balancing out time gain advantage over cost disadvantage.
Corridor is not just about transportation of goods. It is about connectivity which means ability to channel movements of goods as well as energy and communication lines. It is also about strategic derisking by means of creating alternatives. It can also be the means of facilitating the integration of chain of economies which are not very involved in trade etc due to historical and political reasons. Chances of success for any given corridor will be more based on solving the risk perceptions and on opportunities for aligning trade and strategic interests that it will create for countries rather than cost and time considerations alone.
Middle Eastern giant economies have identified the need to establish infrastructure, services & soft economy before oil is exhausted. They have vision to transform into a sustainable global economic hub. They want to offer capital and connectivity to attract and support global commerce. They are willing to be partners in creating and servicing the regional network of economic corridors. These networks have commerce, communication and strategic potential to integrate the economies worldwide.
In the current assessment the urgency for the newly proposed corridor is not overwhelming. It is more about creating distraction for China's BRI.
Interesting days ahead. Good time to speculate. 😴
Satyamev Jayate! 🪷
Jai Hind!! 🫡
Darrelimpel 😂
Dal rimpel
Indian dream only lasts for 3 weeks, Oct. 08, 2023