New Delhi, India – President Joe Biden, in collaboration with global allies, unveiled an ambitious plan on Saturday to construct a vast rail and shipping corridor connecting India with the Middle East and Europe. This monumental initiative was introduced at the annual Group of 20 (G20) summit, with the aim of not only fostering economic growth but also strengthening political cooperation on an international scale.
“This is a big deal,” exclaimed President Biden. “This is a really big deal.”
The proposed corridor, discussed extensively at the G20 summit, is designed to enhance trade, facilitate the transportation of energy resources, and bolster digital connectivity. The participating nations in this vast network would include India, Saudi Arabia, the United Arab Emirates, Jordan, Israel, and the European Union, as confirmed by Jake Sullivan, President Biden’s national security adviser.
Sullivan elaborated on how this project aligns with President Biden’s vision of “far-reaching investments” that result from “effective American leadership” and a willingness to engage other countries as equal partners. He emphasized that the improved infrastructure would contribute to economic growth, promote cooperation among Middle Eastern nations, and transform the region into a hub for economic activities, moving away from its historical role as a “source of challenge, conflict, or crisis.”
Leaders from various nations, including Indian Prime Minister Narendra Modi and European Commission President Ursula von der Leyen, participated in this significant announcement.
Prime Minister Modi emphasized India’s priority in enhancing connectivity with all regions, highlighting its potential to not only increase mutual trade but also foster mutual trust among nations.
The proposed rail and shipping corridor has the potential to physically unite vast stretches of the globe, enhancing digital connectivity and enabling increased trade, including the transportation of energy products like hydrogen. While no specific timeline for the project’s completion has been provided by the White House, it represents a viable alternative, both physically and ideologically, to China’s extensive nationwide infrastructure program.
Although precise details regarding the project’s cost and financing remain undisclosed, Crown Prince Mohammed bin Salman of Saudi Arabia mentioned a figure of $20 billion during the announcement. It is unclear whether this amount exclusively applies to Saudi Arabia’s commitment.
After the announcement, President Biden warmly greeted Crown Prince Mohammed bin Salman, a stark contrast to their previous encounter in Jeddah, Saudi Arabia, just over a year ago. During that meeting, President Biden, who had previously criticized the prince over Saudi Arabia’s human rights record, greeted him with a fist bump, a gesture that drew criticism from human rights activists.
Describing the project as a “green and digital bridge across continents and civilizations,” President von der Leyen also revealed that it includes cables for transmitting electricity and data.
In addition to the India-Middle East-Europe corridor, another major project, the “Trans-African Corridor,” was announced, connecting the Angolan port of Lobito with landlocked areas of the continent, including the Kananga province in the Democratic Republic of Congo and the copper-mining regions of Zambia. President Biden lauded this African initiative as a “game-changing regional investment.”
Amos Hochstein, Biden’s coordinator for global infrastructure and energy security, provided a tentative timeline for the project. Over the next 60 days, working groups will finalize a comprehensive plan with timelines. The initial phase will involve identifying areas requiring investment and opportunities for physical infrastructure connections between countries. Hochstein estimated that these plans could be implemented within the next year, enabling the project to progress to financing and construction phases.
Sullivan explained that the groundwork for this project began after President Biden’s visit to Jeddah, Saudi Arabia, in July 2022, where he emphasized the importance of greater regional economic integration. Conversations with regional partners regarding the project’s concept commenced in January, followed by the drafting of maps and assessments of existing rail infrastructure in the Middle East by spring. In May, Sullivan and senior White House aides Hochstein and Brett McGurk traveled to Saudi Arabia for meetings with their Indian, Saudi, and UAE counterparts.
Israel and Jordan were also brought into the project, despite the absence of diplomatic relations between Saudi Arabia and Israel. Sullivan clarified that the transportation project is not a “precursor” to a normalization agreement but acknowledged Israel’s participation as “significant.”
Biden actively participated in both G20 sessions on Saturday, emphasizing plans to encourage investments in addressing climate change, including domestic incentives for renewable energy adoption. He also highlighted the repercussions of Russia’s war in Ukraine on various nations, including higher food and energy costs and increased interest rate expenses on debt.
Notably, Ukraine President Volodymyr Zelenskyy, a regular presence at international summits, was not invited by India’s government to this year’s gathering. India, a prominent U.S. ally, has remained largely neutral in the conflict and has even increased its purchases of Russian oil.
Jon Finer, the White House principal deputy national security adviser, disclosed that the U.S. administration advocated for Zelenskyy’s inclusion at the summit. He emphasized that while the ultimate decision lay with the host nation, the United States and its partners closely aligned with Ukraine would assert their case strongly during discussions.
The summit’s joint communique addressed various issues, including the ongoing war in Ukraine. It reiterated the principle that nations must not employ force to alter borders, disapproved of nuclear weapons use, and called for a just peace based on U.N. Charter principles. The communique further stressed the cessation of attacks on civilian infrastructure.
President Biden also discussed his request to Congress for additional funding for the World Bank, which could generate more than US$25 billion in new lending for economic development.
The broader aim of the White House is to bolster the G20’s role as an international forum, despite the absence of Chinese President Xi Jinping and Russian President Vladimir Putin, who chose not to attend.
Regarding President Xi’s absence, President Biden expressed his disappointment but noted that the summit was progressing well, stating, “It would be nice to have him here.”
The summit brought to light the multifaceted discussions and engagements between world leaders, demonstrating a concerted effort to address global challenges, forge economic ties, and explore transformative initiatives. The India-Middle East-Europe rail and shipping corridor is poised to become a symbol of cooperation and connectivity, bringing nations together across vast geographic spans and facilitating economic progress in a region historically marked by challenges and conflicts.