- Iran has announced a sea corridor for commercial exchange with Russia and India as an alternative to the Egyptian Suez Canal.
- It raises questions about the impact this corridor will have on one of the main national economic resources in Cairo that has been severely affected by the coronavirus pandemic.
- The Iranian Chabahar Free Trade Zone Organization revealed July 5 that trade connections to Mumbai, Hamburg and St. Petersburg will be made through Astrakhan (in Russia), Anzali and Chabahar (in Iran) and Nhava Sheva (in India) instead of the Suez Canal.
A recently published news article in the Al Monitor reveals the new trade route by sea via the Iranian Sea Corridor. Experts views are presented below whether Iranian Sea Corridor is a competitor for Suez Canal.
The idea of Iranian International Transport Corridor
Suez Canal Authority (SCA) George Safwat told Al-Monitor over the phone that the idea of the Iranian international transport corridor dates back to 2000 when Iran, Russia and India signed a joint agreement to start establishing a transport route that includes maritime, land and rail transport lines.
The route, he said, aims to transport goods and shipments from India and Iran to countries surrounding the Caspian Sea, and from there to Russia and Germany and vice versa over a distance of 7,500 kilometers (4,660 miles).
Neither competitor nor a substitute
The SCA official pointed out that the Iranian international corridor is neither a competitor nor a substitute for the Egyptian Suez Canal, whose capacity exceeds 1 billion tons per year.
The SCA is unlike the Iranian corridor’s limited capacity, because its aim is to serve the trade of landlocked Asian countries and countries overlooking the Caspian Sea and it limits goods.
He told Al-Monitor that Iran is looking to serve its own interests in the region in light of the challenges it faces due to sharp differences with the Arab Gulf countries and the United States, and that Iran is entitled to exploit this commercial corridor that serves its interests.
SCA the fastest and cheapest
Salah Abdullah, a former parliament member and deputy secretary-general of the Arab Popular Conference, told Al-Monitor that the Suez Canal has no competitor and is the fastest sea lane in the world due to its distinguished geographical location.
Also, he added, Egypt has widely developed the Suez Canal to accommodate giant ships transporting goods of huge tonnage.
Consequently, and like any other corridor, the declared Iranian corridor won’t be affecting Suez Canal revenues.
Did you subscribe to our daily newsletter?
It’s Free! Click here to Subscribe!
Source: Al Monitor
