President Biden Unveils Ambitious Rail and Shipping Corridor Linking India, Middle East, and Europe for Economic Growth

President Biden Unveils Ambitious Rail and Shipping Corridor Linking India, Middle East, and Europe for Economic Growth
President Biden Unveils Ambitious Rail and Shipping Corridor Linking India, Middle East, and Europe for Economic Growth

President Joe Biden, along with his supporters, has unveiled a grand plan to construct a rail and shipping pathway linking India with the Middle East and Europe. This ambitious project aims to foster both economic growth and political cooperation.

“This is a significant endeavor,” emphasized Biden. “A truly monumental one.”

The corridor is envisioned to bolster trade, facilitate the transport of energy resources, and enhance digital connectivity. It will involve India, Saudi Arabia, the United Arab Emirates, Jordan, Israel, and the European Union, according to Jake Sullivan, Biden’s national security adviser.

The announcement of this project was made by Biden, Indian Prime Minister Narendra Modi, and European Commission President Ursula von der Leyen during the annual Group of 20 summit. This initiative is part of a larger program called the Partnership for Global Infrastructure Investment.

“We believe not only that the project itself is ambitious and transformative, but the vision behind it is equally bold and transformative, and we anticipate seeing its replication in other parts of the world as well,” remarked Sullivan.

This rail and shipping corridor is set to physically unite vast regions of the world, boosting digital connectivity and enabling increased trade, including in energy products like hydrogen. While the White House did not provide a specific timeline for its completion, this corridor offers both a tangible and ideological alternative to China’s expansive infrastructure initiative.

No details were given regarding the funding of the project.

Sullivan highlighted that this network aligns with Biden’s vision of “far-reaching investments” spurred by “effective American leadership” and a willingness to engage other nations as partners. He stated that this enhanced infrastructure will drive economic growth, facilitate greater unity among Middle Eastern countries, and establish the region as a hub for economic activity, as opposed to being seen as a source of challenges, conflicts, or crises, as it has been in recent times.

Von der Leyen described the project as a “green and digital bridge across continents and civilizations.” She also mentioned that it includes cables for transmitting electricity and data.

Additionally, she introduced a “Trans-African Corridor” connecting the Angolan port of Lobito with landlocked areas: the Kananga province in the Democratic Republic of Congo and the copper-mining regions of Zambia.

Regarding the African project, Biden lauded it as a “game-changing regional investment” and stated, “both of these are huge, huge steps forward.”

Amos Hochstein, Biden’s coordinator for global infrastructure and energy security, outlined a rough timeline for the project in the coming year.

Over the next 60 days, working groups will develop a comprehensive plan and establish timelines. The initial phase will entail identifying areas requiring investment and where physical infrastructure can be interconnected between countries. Hochstein indicated that the plans can be put into action over the next year, allowing the project to progress to the stages of financing and construction.

Sullivan explained that the project began to take shape after Biden’s visit to Jeddah, Saudi Arabia, in July 2022, where he emphasized the need for greater regional economic integration.

In January, the White House initiated discussions with regional partners about the concept. By spring, maps and written assessments of existing rail infrastructure in the Middle East were being drafted. Sullivan, along with senior White House aides Hochstein and Brett McGurk, traveled to Saudi Arabia in May to meet with their Indian, Saudi, and UAE counterparts.

Since then, all parties have worked to finalize the details of the agreement announced on Saturday.

Israel and Jordan were also brought into the project. Notably, Saudi Arabia and Israel do not have diplomatic relations, though the White House has been encouraging them toward normalization.

Sullivan clarified that the transportation project is not viewed as a “precursor” to a potential normalization agreement, but he described Israel’s inclusion as “significant.”

“The participants in this effort are focused on practical outcomes that deliver for their people,” Sullivan said. “And a corridor of this kind, by dint of geography, works best having Israel in as opposed to out, and the countries participating prioritized that.”

Biden actively participated in both G20 sessions on Saturday. He emphasized plans to advocate for increased investments in addressing climate change, including his own domestic incentives to promote the use of renewable energy. He also argued that Russia’s war in Ukraine is impacting many other nations, which have had to contend with higher costs for food and energy, as well as increased interest rates on their debt.

Ukraine President Volodymyr Zelenskyy, a regular presence at international summits, including last year’s G20 in Indonesia, was not invited by Modi’s government to this year’s gathering.

Zelenskyy has used these high-profile gatherings to appeal for continued economic and military support for his country. India, one of the most prominent U.S. allies, has largely remained on the sidelines of the war and has even significantly increased its purchases of Russian oil.

Finer noted that White House officials advocated for Zelenskyy’s inclusion at the summit.

“Ultimately, it is not our decision,” Finer said. “But you can expect that the United States and our other partners who are working with Ukraine so closely … We’ll make that case quite forcefully in the context of these conversations.”

The summit communique, a joint statement agreed to by all participants, addressed the war, among other issues. It included language underlining the principle that states cannot use force to change borders, disavowed the use nuclear weapons and called for a just peace based on the principles of the United Nations Charter. The communique also underscored that attacks on civilian infrastructure must end.

During the summit, Biden also discussed his request to Congress for additional funding for the World Bank that could generate more than $25 billion in new lending for economic development.

The White House more broadly is trying to strengthen the G20 as an international forum, while Chinese President Xi Jinping and Russian President Vladimir Putin decided not to attend.

Biden has said he’s disappointed by Xi’s decision. Asked again about the Chinese leader’s absence on Saturday, but said the summit “is going well” though “it would be nice to have him here.”