IMEC: Can the ambitious trade corridor from India to Europe succeed?

Euronews

6 hours ago

The India-Middle East-Europe Economic Corridor (IMEC) is one of the most ambitious modern connectivity initiatives.
It aims to create a modern transport and trade corridor linking India to Europe through the Middle East, leveraging ports, rail networks, highways and digital infrastructure.
The project aspires to reshape global trade maps, offer alternatives beyond the Suez Canal, and enhance Europe's energy and supply security.
For Greece, IMEC represents an opportunity to upgrade its role as a key gateway to Europe.
Greek ports, particularly Piraeus and Thessaloniki, have the potential to become key centres for transferring goods and distributing them further into Europe. At the same time, Greece can act as an energy hub, contributing to the diversification of energy sources and supply routes.
However, IMEC also faces significant challenges: geopolitical tensions, competition from other trade routes and countries, the need for large infrastructure investment and policy coordination.
These challenges were discussed in detail at the event titled 'IMEC from potential to partnership,' held by the Balkans & Black Sea Forum "Executive Roundtable 2025," with the participation of ambassadors from the involved countries, analysts, experts, and industry stakeholders.
The main conclusions are:
The IMEC Corridor needs clear guidance and funding. The project started as an Indian initiative, which was then embraced by the EU and Saudi Arabia. However, unlike other similar initiatives, India has not set up a specific implementing body for the project, nor has it committed funds.
Most speakers agreed that the projects will need to be funded through India-EU partnerships, and that the contribution of Saudi Arabia and the US will be crucial. The US is generally positive about the project but sees it as part of a larger strategic framework related to the implementation of the Abraham Accords.
As the speakers pointed out, it is unlikely that India, mainly due to a different mindset, will commit funds and establish a mechanism for the implementation of the IMEC, as China did for the 'Belt and Road' Initiative.
The Indian government emphasises that countries themselves must adopt the project and develop national plans for its implementation.
The corridor will require coordination in the development and operation of the necessary infrastructure. The project is easier for the ports, but for the railway, there are many challenges. For example, there is a need to secure investment funding, build the necessary railway lines (some of which cross regions with significant geopolitical instability), establish a customs union, and set up a dedicated sales office.
As one of the speakers said: "Every corridor is only as strong as its weakest point."
For Greece, the big challenge is the port of Piraeus. Greece is trying to emerge as the main gateway of the Corridor to Europe (competing with Italy and France). However, the fact that the port of Piraeus is managed by a Chinese company raises questions about how willing and able it will be to serve as the final point of the IMEC.
Alternatively, as some speakers noted, the port of Thessaloniki could play this role.
The second major challenge relates to the railway network, which is underdeveloped both within Greece and in its connections with neighbouring countries. As was emphasised, without a strong and interconnected railway network, the potential to fully utilise the IMEC is significantly limited.
The military conflicts in the Middle East are 'freezing' plans for the Corridor's development. Although tensions have eased in the past 24 hours, the broader Middle East region remains an area of high tension and conflict, which raises questions as to whether and how the necessary infrastructure will be shielded.
As for Cyprus, whose participation in the project was confirmed during the recent visit of Noreda Modi to Nicosia, it was noted that Cyprus could become a regional hub for managing administrative and operational issues, building on its experience in this field and its membership of the EU.
And what will be the role of the Palestinians in this project?
"The Palestinians should be part of the project," noted the speakers, for example with rail links to Jordan through the West Bank. However, such a prospect requires permanent peace in the region.