IRAN TOUTS RUSSIA-IRAN-INDIA ‘NORTH-SOUTH TRADE CORRIDOR’ AS “ALTERNATIVE” & CHALLENGE TO SUEZ CANAL
Originally appeared at ZeroHedge
Coming after a ‘successful’ weekend in which sanctions-beleaguered Iran hailed its signing a major 25-year infrastructure and investment agreement with China, Iran’s ambassador to Russia is also touting that a new north-south trade corridor across the region could become
a prime ‘alternative’ to the strategic Suez Canal waterway that’s been featured in global headlines due to the ‘Ever Given’ stuck tanker disaster that just played out.
Called the “International North-South Transport Corridor (INSTC)” — a two decades in the making ambitious project — the new trade corridor, currently partially in operation, is
7,200km long, linking up Russia, Iran, and India and ultimately accelerating trade with Europe as well.
Commenting on the stuck tanker fiasco in the Suez, Iranian Ambassador Kazem Jalali explained of a potentially less expensive and disaster-prone waterway transport
route across Egypt:
He further described that the mounting huge costs and fallout from the Ever Given jam disaster (commonly ballparked in the many multiple billions) demonstrates “the need to speed up the completion of infrastructure and the North-South corridor as
an alternative to the route through the Suez Canal has become clear and more important than ever.”
Getty Images
A regional analysis site,
Silk Road Briefing, reviews the recent history of the
project as follows:
The claims of reduced transport travel time and cost are often advanced according to these estimates:
It’s been dubbed in Russian media, even long before the latest Suez crisis, a challenge to the Suez canal.
Also sometimes compared to the ancient ‘Silk Road’ (the most famous East-West trade route across Asia from antiquity through the Middle Ages) – and somewhat akin to China’s expanding Belt & Road initiative under President Xi, it primarily by rail links two major bodies of water – the Indian Ocean and Persian Gulf – by way of Iran to Russia and northern Europe.