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Possible opportunities: Beirut Port's role in the emerging economic corridor
News Bulletin Reports
2023-09-25 | 10:01
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Possible opportunities: Beirut Port's role in the emerging economic corridor
With the announcement of the economic corridor from India to the UAE and Saudi Arabia, passing through the port of Haifa and extending into Europe, questions have arisen about the role of the Beirut Port.
Officials at the port have been quick to reach out to their Saudi counterparts. Still, they were met with the response that discussions regarding Lebanon's future role in this corridor cannot occur until a presidential election and a reconfiguration of power take place.
It would be a significant added value if the Beirut Port finds a place on this route.
However, its absence does not necessarily mean the end of its role.
The declared economic corridor excludes China, Taiwan, and Thailand. Thus, trade with these countries continues, raising the possibility of Lebanon connecting to the Chinese route that includes countries like Iraq and Syria, especially considering that Iraqi transit through the Beirut Port currently constitutes eight percent of the port's total activity.
When inquired about the possibility of expanding the container terminal's working area, officials at the Beirut Port confirmed that it is feasible and under consideration. Transiting from the Beirut Port to Iraq currently accounts for approximately eight percent of the port's total activity.
Observers of the India-Europe corridor's repercussions suggest that despite expected negative effects on the Suez Canal, data indicates that dozens of ships will continue to pass through daily towards the Mediterranean basin.
Hence, questions arise regarding how many ships the port of Haifa, and potentially Ashdod Port, can accommodate, even if Beirut Port is included in the equation.
Analysts respond that it is implausible for Haifa and Ashdod to absorb all the vessels heading to the eastern Mediterranean. Therefore, Beirut Port could claim a share of this activity.
With Israel's presence on this India-Europe route, can Hezbollah agree to Lebanon's participation?
Naturally, Beirut Port requires logistical improvements and modernization of its management and operations. Several options are on the table: joining the India route, possibly involving Israel, becoming part of the China route, or maintaining its current status, which is favorable.
However, this port, along with Tripoli Port, may also require a network of railway lines connecting the two ports in the north and south to facilitate transit to Syria, Iraq, Jordan, and possibly beyond.
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