A report released by the Atlantic Council on June 30, 2026, projects that the India-Middle East-Europe Economic Corridor (IMEC) could handle over 60% of pre-war container traffic that previously moved through the Strait of Hormuz. The report indicates this could be achieved through the integration of new transit routes in Oman, Egypt, and Syria.
The integration of these new routes could also increase the overall capacity of the economic corridor by a factor of ten. Middle East governments are currently investing in new infrastructure, streamlining customs and regulatory processes, and exploring new rail and pipeline projects to reduce reliance on the Strait of Hormuz.
Saudi Arabia is developing the Port of NEOM as a new logistics hub and is expanding its rail networks to connect to the Red Sea and Jordan. The country is also working to establish a series of new logistics corridors. Additionally, Saudi Arabia and Turkey are reportedly examining options to re-establish a rail line that would connect Jordan to Syria.
Parallel developments include the United Arab Emirates and Oman completing a new rail line, which forms part of the larger GCC Railway project. The GCC Railway project aims to link all six nations within the Gulf Cooperation Council. The United Arab Emirates is also constructing a new pipeline designed to double its capacity for exporting oil outside the Strait of Hormuz.
Early discussions are underway regarding a proposed pipeline that would connect Iraq to Jordan's port of Aqaba. The IMEC initiative was originally proposed in September 2023 during the Group of Twenty summit, where the new rail line connecting Saudi Arabia to the Jordanian border was identified as a key component.
Progress on the India-Middle East-Europe Economic Corridor experienced a slowdown following the October 7 Hamas attacks in Israel. Despite this, most signatory governments of the IMEC continue to coordinate through a sherpa process.
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