“Corridors for Economic Integration”
The paper was drafted by Shira Greenberg, the ministry’s chief economist, under the direction of Finance Minister Avigdor Liberman. Government officials said that Liberman met in recent days with Prime Minister Yair Lapid to ensure that its main points would be brought up in talks with Biden during his visit to Israel, which begins on Wednesday and will end on Friday.
The paper – obtained by The Jerusalem Post and prepared in English so it could be shared with the Biden administration – pushes for a new plan called “Corridors for Economic Integration” that would create a regional transportation network including railways and highways linking Israel with Jordan, Saudi Arabia and the Gulf.
“By creating a direct connection between the Gulf and the Mediterranean, the network will allow for dramatically shorter shipment times between East and West,” the paper claims. “The project thus has the potential to facilitate trade on both a regional and global level, in addition to enhancing regional economic cooperation.”
Some sections of the network are already in stages of development, according to the paper. In Israel, a railway runs from the port of Haifa to Beit She’an, which is only 10 km. from the border with Jordan.
In Saudi Arabia, the North-South Railway links the east and center of the country with the north, all the way up to the border with Jordan.
In the Gulf, a railway under development there is being planned to connect those of all Gulf countries, in particular railways in Saudi Arabia, the United Arab Emirates and Bahrain.
“By creating a direct connection between the Gulf and the Mediterranean, the network will allow for dramatically shorter shipment times between East and West.”
The distance, the paper said, of the “missing link” – between the Saudi-Jordanian border and the crossing between Israel and Jordan where the railway almost reaches – is just 200 kilometers.
The network, the paper claims, could facilitate trade between the Gulf, Europe, North Africa and the east coast of the Americas. “The existence of numerous relevant and significant trade flows is expected to provide the project with robust demand – as traders in all relevant countries will seek to take advantage of reduced shipment times and direct access to regional markets,” it says.
In the paper, the Finance Ministry calls on the Biden administration to take the reins of the initiative and to bring all of the relevant stakeholders together to facilitate its success.
“While preliminary analyses have shown the project’s potential, a full cost-benefit analysis carried out on behalf of all involved parties by an experienced international partner could also help the sides decide on the next steps,” it says. “We believe that the current positive atmosphere of regional cooperation will allow us the opportunity to move forward in these regards.”
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