India-Middle East-Europe Shipping and Railway Connectivity Corridor: The Route to Riches


The Indian Express headlines it: “Data to oil, gas to goods: seamless sea-rail corridor from India to Europe.”
It goes on to say, " The use of the land route in the Arabian peninsula could mean bypassing the congested Suez Canal that cargo ships currently take. The project eventually aims at laying out a seamless corridor running all the way from South East Asia to Europe."
It is supposed to be a connectivity corridor spanning India to Europe via West Asia and " entails an ambitious project than could leverage railway tracks and shipping corridors to help physically link up a vast stretch of the Eurasian subcontinent, and in the process improving digital connectivity and catalysing trade among countries, including energy products such as green hydrogen."
In fact what is remarkable is that the project is not in the dreams of some bureaucrats, but " “India, USA, UAE, Saudi Arabia, France, Germany, Italy and the European Union Commission have signed the Memorandum of Understanding to establish the India-Middle East-Europe Economic Corridor (IMEE EC)."
So, this brings us to which companies should benefit from the project.

(i) It goes without saying that the Rail Infra companies like RVNL, IRCON and RITES would be involved in the Railway infra work. It could also involve other infra companies like J Kumar.
(ii) For electrification, expertise of companies like Siemens, ABB, Powergrid etc may be useful. Companies like C G Infra and HBL Power may also have a role. Electrification also brings in cable companies like Polycab. And perhaps companies in aluminium and copper.
(iii) The airconditioning companies would definitely be required.
(iv) May be the financing aspect will bring in IRFC, and the communication part may benefit Railtel.
(v) For wagons, Titagarh, Jupiter, and Texmaco may be candidates.
(vi) For reaching the railway tracks, and roads and perhaps some tunneling too, infra-structure companies like L&T, Patel Engineering etc may have to be involved.
(vii) The shipping companies must be licking their chops, Shipping Corporation of India is one of them. The ship making and repairing companies may include the known names of Mazgaon Dock, Cochin Shipyard etc and some lesser known companies like Knowledge Marine.
(viii) The exporters would be happier.
(ix) It should help the logistics companies like Tiger Logistics too.

I look forward to members with deeper domain knowledge to correct me and add new dimensions.

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GCC rail is already under work to connect countries there Gulf Railway - Wikipedia.

It is interesting how they are connecting multiple existing infra to make new route.

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Is this project approved and signed?

it is an MOU signed. please watch this video !

The exact wordings of the signed MOU as follows:

“It will include a railway that, upon completion, will provide a reliable and cost-effective cross-border ship-to-rail transit network to supplement existing maritime and road transport routes – enabling goods and services to transit to, from, and between India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.”

You may please go through this article :

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Thank you so much for sharing it.

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Well, the name Adani does not enthuse me. The latest reason being the resignation of their auditors.

May be the ports run JSW Infra may be alternative? Dharamtar is 23 nautical miles from Bombay, so it should be involved in the shipping for this corridor in future.JSW - JSW Ports
Th time horizon for the corridor must be at least a decade. So, is it already time to look at the logistics, shipping and the port running companies? Or the uncertainties in a project which would involve a large number of countries, the political scenario which may change from time to time in any of these countries, the financial outlook in this time, etc should influence our decision?

I am wondering why there is no talk of this important event in the circles. May be because most investors don’t want to see so far?
Disclaimer: None of the above is a recommendation.
Disclosure: I have purchased some SCI, JSW Infra, and Alcargo today.

The course of true love, so said Lysander in William Shakespeare’s A Midsummer Night’s Dream, never did run smooth. The same it seems is true of the Corridors too. India-Middle East-Europe Shipping and Railway Connectivity Corridor seems to run into trouble on account of the war in the middle-east.

https://indianexpress.com/article/explained/explained-economics/israel-hamas-india-europe-imec-corridor-8993474/

My view is that if we are invested in it for long term, the war is likely to prove only a blip. May be it will mean some redrawing of the lines, but if you are buying stocks so that you may reap the rewards a decade hence, it sill appears to offer pretty good prospects for the infrastructure.

Interested in knowing what is your opinion?