The Biden Project: Egypt Among the Losers
Israeli media and major think tanks in Tel Aviv have revealed that Egypt will be among the big losers of the new “Biden Project” that will link India to Europe through the Persian Gulf and Israel.
The Impact on Egypt
The Israeli economic newspaper “Globe” quoted Dr. Yoel Guzansky, head of the regional policy department at the Israel Research Institute for Security and Strategic Studies (INSS), as saying that Egypt, which controls the Suez Canal, through which 10% of total world trade passes, and about 7% of traffic… Oil will lose the most from this project.
An Israeli strategic analyst noted that the Suez Canal, whose revenues jumped to $9.4 billion in the 2022/2023 fiscal year from $7 billion the previous year, represents a real deal for a country like Egypt, whose debts to the International Monetary Fund currently amount to for its economy, but after this ambitious project, reducing the dependence of Europe and India on the Suez Canal and even reducing the new transport corridor between them could deal a fatal blow to Cairo.
Challenges and Opportunities
He added that connecting such common regional infrastructure between countries with Riyadh’s participation is certainly a challenge for China, and at the same time, a dedicated transport corridor will shorten supply chains, thereby reducing countries’ dependence on China.
Regarding the importance of this project for Saudi Crown Prince Mohammed bin Salman, the Israeli strategic analyst said that Saudi Arabia’s participation in this project is related to the “City of the Future” that NEOM is building, as bin Salman’s pioneering project extends to an area of 26.5 square kilometers, and investments could reach… It is estimated at $500 billion, but the city is located in the west of the country, and therefore a lot of thought will be required about how to connect it to the Internet and the network. Regional transport project.
Guzansky added that if NEOM is indeed added to the ambitious project, the city of Eilat on the Israeli side could also benefit greatly since NEOM’s northwestern edge abuts the Strait of Tiran, the entrance to the Red Sea.
Similar Projects and Time Reduction
Regarding whether this project is a precedent, Guzanski said that the plan is far from unprecedented, since the field of land transportation of goods has been gaining momentum in recent years, and already on December 4, 2020, the first cargo transport flight from Turkey to China began. By rail – a journey of about 8,693 kilometers and lasting 12 days. A similar project was also promoted by Russia and Iran back in July 2022, when RZD Logistics became the first to use the North-South corridor, designed to transport goods over a distance of about 7,200 kilometers from Moscow through Iran to Mumbai.
He continued: “Experts in India estimate that using this route will reduce the transport time from Russia to India by only about ten days, from 30 to 45 days via the Suez Canal.”
He added: “One of the clients of the North-South corridor is none other than Western Saudi Arabia. About two weeks ago, a freight train containing about 36 containers crossed from Russia to Iran en route to Saudi Arabia and made its journey.” route to the port of Bandar Abbas in the Strait of Hormuz, where the cargo is reloaded by ship.” His destination is Jeddah, bypassing the Arabian Peninsula.
The Biden Project
US President Joe Biden announced at the G20 conference an economic corridor that would link India, Europe, the Persian Gulf and Israel through a group of countries including the United Arab Emirates, Saudi Arabia and Jordan.
While Jewish newspaper strategic analyst Brigadier General Shmuel Elms said the project is expected to start at the port of Piraeus in Greece, and from there it is estimated to head by sea to the Israeli port of Haifa. which will then be connected to Israel and the Gulf countries by rail and is expected to sail from Haifa to Jordan and from there to the Kingdom of Saudi Arabia and the United Arab Emirates to the port of Jebel Ali and there the goods will be loaded onto ships that will head to Mumbai in India.
He added that in addition to the main road, roads to other countries in the region are expected to be built, led by Bahrain and the Sultanate of Oman.
Funding and Challenges
As for funding for the project, Elms said details are not yet known and a response is expected within 60 days and the full plan will be released.
As for the chances of success of this plan, Dr. Yoel Guzanski said that it is too early to tell, since Israel has proven to be a country that has difficulty meeting deadlines when it comes to infrastructure projects, and the plan currently presented by Biden is only under implementation. general outlines.
He added: “There is another issue that will affect the future of the project, namely the political situation in Israel. Such a plan would also require extensive financial investment on the Israeli side, so Prime Minister Benjamin Netanyahu would have to obtain broad In other words, Netanyahu could find himself stuck between his partners, such as ministers Bezalel Smotrich and Itamar Ben-Gabir, and the opposition, which seeks to prevent Netanyahu from achieving political achievement that improves one’s position.
Beneficiaries in Israel
Regarding the most important beneficiaries of this project in Israel, Guzansky said that one of the main beneficiaries of the ambitious project is the port of Haifa, since the new transport corridor is expected to pass through the port, which is expected to be chosen only because of its location.
He noted that nine months ago, the Indian Adani group acquired the Haifa port for NIS 4.1 billion, since Adani controls 13 different ports in India, so such an ambitious project could greatly benefit the port, which is controlled by India: Another company One that could benefit from this issue is the Chinese company SIPG, which owns one of the ports in the Persian Gulf.
Source: Israeli media