**Chennai**: CMA CGM is set to significantly contribute to the India-Middle East-Europe Economic Corridor following discussions between Indian Prime Minister Modi and French President Macron. The corridor aims to enhance trade connectivity and strategic relationships across the regions, marking a transformative initiative for global trade.
French shipping giant CMA CGM is set to play a significant role in the newly proposed India-Middle East-Europe Economic Corridor (IMEC), according to reports from Chennai’s BusinessLine. This announcement follows a meeting between Indian Prime Minister Narendra Modi and French President Emmanuel Macron at the CMA CGM Group’s headquarters in Marseille during Modi’s state visit to France. The two leaders were greeted by Rodolphe Saade, the Chairman and CEO of CMA CGM.
The discussions concentrated on the IMEC, a strategic trade route aimed at improving connectivity between India and Europe. As a French company with a global presence in maritime, land, air, and logistics solutions, CMA CGM expressed its commitment to actively contributing to this initiative. The IMEC aims to enhance transit between Europe and India through an integrated network of maritime and land infrastructure, as well as facilitating energy transport and telecommunications via a subsea cable. This corridor is expected to significantly enhance trade relations between the European Union and the Middle East.
CMA CGM will leverage its modern fleet, which is adapted to alternative energy sources, alongside its key port hubs located in India, the UAE, and the Mediterranean, to ensure the efficient operation of the corridor. Furthermore, a network of dry ports along the rail routes of IMEC, which stretches from India through Saudi Arabia and the Middle East to Europe, will utilise the group’s logistics expertise. This initiative is expected to reinforce both the economic and strategic vision associated with the alternative trade route.
Indian Finance Minister Nirmala Sitharaman reflected on the significance of the IMEC while presenting the Interim Budget for 2024-25 in Parliament on 1 February 2024. She noted that the corridor represents a strategic and economic game changer for India and other participating nations. Citing the Prime Minister, she remarked that the corridor “will become the basis of world trade for hundreds of years to come, and history will remember that this corridor was initiated on Indian soil.”
To solidify their collaboration on this project, a memorandum of understanding (MoU) was signed by multiple stakeholders, including Saudi Arabia, the European Union, India, the UAE, France, Germany, Italy, and the United States. The IMEC will comprise two separate corridors: the east corridor linking India to the Arabian Gulf and the northern corridor connecting the Arabian Gulf to Europe. Additionally, railway projects are planned to support a reliable and cost-effective cross-border ship-to-rail transit network, which will complement existing maritime and road transport routes enabling the movement of goods and services among India, the UAE, Saudi Arabia, Jordan, Israel, and Europe.
Source: Noah Wire Services
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