Context: 

An alternative route for trade to bypass the Red Sea was announced by  the Israeli transport minister.

Red Sea Attacks Foster Arab-Israeli Trade Link by Land

• Landbridge Agreement: Israel-based Trucknet signed a cooperation agreement with Emirati-based  Puretrans  and the Dubai port-operating company to enter into an agreement connecting the ports of Dubai or Bahrain, passing through Saudi Arabia and Jordan, and getting to the port of Haifa, as well as Egypt, where cargo can continue to Europe.
• New Continental Routes:  A similar route is the India Middle East Europe Economic Corridor (IMEC), which connected Mumbai ports to Greece via the Middle Eastern countries.

Mundra Port in India Serves as Alternative Route For Israel

• The proposed new route is mainly a  land corridor first  proposed during the Abraham Accords  in 2020 (It was between Israel and the UAE, Morocco and Bahrain)
• India Role: India’s addition to the route will give it a multi-modal nature by connecting it to India’s  western Ports.
• The Route: It starts from the Mundra port in Gujarat to UAE’s Dubai’s Jebel Ali Port, by sea, and then via land through Saudi Arabia and Jordan to Israel and further to Egypt.
• Truck-based: A major part of the land transport will be carried out on trucks with the trucks being operated by two shipping companies, Israel’s Trucknet and the UAE’s PureTrans.

Significance: 

• Transit time: Travel time is estimated to reduce by 80 per cent compared to maritime routes 
• Revenue Generator: The new route will  generate revenue for Saudi Arabia and Jordan  through  transport fees and duties in addition to cutting costs for Israel
• Alternative to Maritime Trade: It can provide a secure and efficient continental alternative route characterised by high standards and competitive pricing.
• Shipping  time: The shipping time will be reduced by 10 days; unloading and putting the cargo on trucks via the land route will take just four days.
• Security of International Trade: The attacks from Iran backed houthi militants in Red Sea has raised the shipping and insurance cost to trade significantly which is hampering global trade security and resilience.

News Source: The Indian Express