Israel-China Alliance Moves Forward With $2 Billion ‘Red-Med’ Freight Rail Link Alternative to Suez Canal

March 24, 2014 9:53 pm 9 comments

An Israel Railways train at the Haifa Merkaz Hashmona Station. Photo: Golf Bravo via Wikimedia Commons.

The growing economic alliance between Israel and China is moving forward with a $2 billion, 300 kilometer freight rail link connecting Eilat, on the Red Sea, with Ashdod Port, on the Mediterranean, Germany’s Deutsche Welle news magazine reported on Monday.

The project, nicknamed the ‘Red-Med,’ was greenlit by Israel Prime Minister Benjamin Netanyahu’s cabinet, and construction, which is expected to take five years, will begin within the year.

About the link, Netanyahu said, “It’s the first time we’d be able to assist the countries in Europe and Asia to make sure they always have an open connection between Europe and Asia and between Asia and Europe.” For Netanyahu, the rail link also has a civilian use, doubling as a line for a two-hour passenger ride between Tel Aviv and Eilat, DW said.

Ilan Maor, a former Israeli consul to Shanghai and CEO of consultancy firm Sheng-BDO, told DW that without foreign help and investment from China, the project would likely remain on the drawing board for years.

“I think the investment or involvement of the Chinese companies and government in Israel, just like any other country whether European or American, is a good thing,” Maor told DW. “If this project is good and it makes sense commercially, then if you have a foreign company which enables you to do it, that’s a good thing. I don’t think the Israeli government or any of the Israeli companies have the capability to take such a project and develop it by itself.”

“I think China is looking more and more into the international market and doing business outside China. That goes for Africa, for Asia, for Israel and the Middle East. And I think any foreign involvement in the Middle East is coming from the positive aspect. Not somebody who is going to build military camps and sell weapons but a foreign body or company who is investing in the Middle East producing new projects,” Maor said.

“It shows the Chinese government, Chinese companies believe that Israel holds a significant potential for business cooperation and that they believe the trade relation with Israel is not only between China and Israel but between Israel and other countries – it’s going to develop,” Maor said.

The rail link will both increase access to goods for Africa, where China is the continent’s biggest partner, with trade worth $120 billion, while also providing an alternative shipping route to the Suez Canal, controlled by Egypt.

In a report cited by DW, the Center for International Maritime Security pointed to Egypt’s political uncertainty following the downfall of Egyptian leader Hosni Mubarak in February 2011 and the ousting of his successor, Muslim Brotherhood leader Mohammed Morsi, a year after he was elected in June 2012. The center said that political instability has left the Sinai Peninsula a “lawless zone for jihadists and Bedouin militias,” highlighting a rocket-propelled-grenade attack last August on a Chinese-owned container ship.

Lloyd’s insurance market has even recommended that ships take the 6,000-mile route around South Africa instead. In September, it welcomed a new maritime hub at Port Sudan to provide an alternative should Egyptian unrest force the Suez to close, DW said.

“Those who use the canal may find the alternative of train and using the Red Sea cheaper. You see there’s demurrage on the Suez – congestion charges. We pay for waiting in line,” Oded Eran, a retired Israeli diplomat now at Tel Aviv University’s Institute for National Security Studies, told DW.

Rather than compete with Egypt, Eran said the Red-Med link would just facilitate more trade. “We want the Egyptian economy to strengthen,” he said. “It’s simply a way of facilitating transport between the industrial centers of the north to the south.”

But Eran, who was Israel’s ambassador to Jordan from 1997 to 2000, said the plan missed the opportunity to include Jordan, which would have also helped encourage Arabs to use the infrastructure.

“There’s a semi-used port in Aqabar in Jordan – we could have used that infrastructure. It would have been economically and politically correct to work together on this,” Eran told DW.

9 Comments

  • Jonah Lissner

    The Israel-China Alliance has many advances, including this one to move Israeli and Chinese products to and from both countries. It also builds a greater future of Israeli presence in the Red Sea through the Horn of Africa and into the Indian Ocean, making stronger Israeli Navy and future Israeli population gains as in Cyprus and the Mediterranean. African and Asia alliances are in the strong interest of Israel and so are Israeli interests for African and Asian countries.

  • Mahmoud Hamza

    I think that Egypt’s SISI has replied in kind by announcing the digging of the new Suez Canal , making it ever easier and faster and cheaper for ships to transit from the Red Sea to Mediterranean .
    The new canal must be a blow the the Israeli Rail line . Ships will now lose no time at all waiting in transit at either end of the canal or in the bitter lakes .
    So Israel may go ahead and build her proposed new rail line.

    • Egypt is broken…the economy is in very bad shape. It would take years for the recovery to happen.So a project like that is just another “pipe dream” bravado from the current Egyptian government….

  • conrad mikhelson

    Why dont they just dig another channel through the desert. This channel will be parallel to the Suez one, boost competition and make Izrael and oil companies happy?

    • On which side of border do you refer?
      On Egypt side of border, it will meet with the same political instability of Egyptian government.
      On Israel side of border, it will have to run through Hamaslandia .. uh .. Gaza Strip.

  • Raymond in DC

    As a layman, the idea of unloading, mounting on rail, traveling the rail distance, then reloading on ship seems inefficient and costly. But if the Chinese are supporting the project with their own money, they must know more than me.

    A more obvious project, which makes sense even to me, would involve transporting Arab oil through Israel, avoiding both the Straits of Hormuz and the Suez Canal. I see two routes: The first would follow the path of the old British oil line that went from Iraq through Transjordan to Haifa. The second would run from the Arab countries of the Persian Gulf to Jordan’s Aqaba. From there, oil would feed into an existing pipe running from Eilat to Ashdod. It was built to carry oil from Iran back in the days of the Shah.

    • Maybe in a perfect world this would work. In today’s Arab world this is just a passing daydream!

  • Hi there this is kind of of off topic but I was wanting to know if blogs use WYSIWYG editors or if
    you have to manually code with HTML. I’m starting a blog soon but have no coding skills so I wanted to get guidance from someone with experience.
    Any help would be enormously appreciated!

  • Joseph Kelly

    When Chinese do business with Israel it is profitable for both parties, which it should be.

    When the EU and the USA do business with Israel, they secretly fund post Zionists and Israel’s mortal enemies. Could this be because they are influenced by lucrative petro dollar contracts coming their way, making them confused with morality?

    This is why Europe now and soon the USA will lose their hegemony to Asia in particular and China more specifically.

Leave a Reply

Please note: comments may be published in the Algemeiner print edition.


Current day month ye@r *

More...

  • Book Reviews Jewish Identity Surviving the Holocaust by Hiding Their Faith (REVIEW)

    Surviving the Holocaust by Hiding Their Faith (REVIEW)

    “Jews Out!” was just the name of a child’s game that three little girls played in World War II Europe. But all is not as it seems because the three girls were Jewish, but hiding their true identities. In award-winning author R. D. Rosen’s riveting non-fiction work, Such Good Girls, “Jews Out!” wasn’t a game; it was a struggle for survival. The girls, Sophie, Flora, and Carla, grew up at a time and a place that did not allow them [...]

    Read more →
  • Music Personalities Twenty Years On, the Real and Radical Legacy of Rabbi Shlomo Carlebach

    Twenty Years On, the Real and Radical Legacy of Rabbi Shlomo Carlebach

    JNS.org – “He was part hippie, part yippie, part beatnik, and part New Age,” wrote Elli Wohlgelernter in a Jerusalem Post eulogy in 1994, following the Oct. 20 passing of Rabbi Shlomo Carlebach. Twenty years later, more robust accounts of Carlebach’s life have come to the surface. Earlier this year, Natan Ophir published the book Rabbi Shlomo Carlebach: Life, Mission & Legacy. This past summer, Rabbi Shlomo Katz’s The Soul of Jerusalem hit the shelves. But even the authors will admit [...]

    Read more →
  • Blogs Music Beatlemania Invades the Gaza Strip (SATIRE)

    Beatlemania Invades the Gaza Strip (SATIRE)

    As Hamas loses its grip on power in the Gaza Strip as a result of war, poverty and disillusionment, the Islamist terrorist group has developed an ingenious way to raise the moral of the 1.7 million Palestinian Arabs it was elected to serve. While currently focused on delivering a rocket into every Israeli home, Hamas has not left its own people behind. To gently wipe away the tears of children strategically placed inside kindergartens as human shields, the Hamas Interior Ministry has [...]

    Read more →
  • Arts and Culture Spirituality/Tradition Removing Jesus’ Jewish Identity From Artwork

    Removing Jesus’ Jewish Identity From Artwork

    In a strong statement that challenges the historic divide between Christianity and Judaism, Pope Francis recently proclaimed, “Inside every Christian is a Jew.” But if you look at Renaissance artworks that depict Jesus, you will not find any evidence of a Jew inside the Christianized Jesus — even though the Gospels in the New Testament tell us that Jesus was Jewish to the core. Getting that point across to the public is a daunting task, as I learned in interviews I [...]

    Read more →
  • Music Personalities Recycling His Roots

    Recycling His Roots

    JNS.org – Having started his career playing on his family’s pots and pans, Jewish musician Billy Jonas has maintained this homemade performance ethic while spreading his messages of simple living and environmentalism to a shared home throughout the world. After beginning in the kitchen, Jonas soon moved to the music room, where he picked up the piano, guitar, and trombone. These days, the multi-talented multi-instrumentalist plays on with pretty much anything he can find, including cans, bottles buckets, and other recycled-object [...]

    Read more →
  • Book Reviews Personalities Jewish Renewal Movement Founder’s Insights Form a New Guide for Senior Living

    Jewish Renewal Movement Founder’s Insights Form a New Guide for Senior Living

    JNS.org – Sara Davidson’s The December Project is a new book that should be read by all senior citizens, and by those who hope to live a long life, for it raises a question that most of us have not been taught how to answer: What should we do in that final stage of our lives? Many of us continue working past the traditional retirement age of 65, not because we need the money and not because we find the [...]

    Read more →
  • Book Reviews Jewish History Why the Holocaust Occurred in Germany, and Why So Few Resisted (REVIEW)

    Why the Holocaust Occurred in Germany, and Why So Few Resisted (REVIEW)

    It’s hard to make a new contribution to the field of Holocaust studies,  but German historian Götz Aly accomplishes just that in Why the Germans, Why the Jews? His premise is that the origins of the Holocaust were rooted in the specific anti-Semitism found in Germany in the decades and centuries before World War II. Aly (who is not Jewish) seeks to prove his theory by studying only pre-Holocaust history, and tracing how the German people’s envy and hatred of [...]

    Read more →
  • Arts and Culture Blogs Looking at Anti-Israel Celebrities and Their Brands

    Looking at Anti-Israel Celebrities and Their Brands

    JNS.org – During the current conflict in Gaza a number of celebrities have voiced their opinions in support of either the Israeli or Palestinian positions. But others—be it during Operation Protective Edge or at other times—have gone further than simply supporting the Palestinians by actively supporting the Boycott, Divestment and Sanctions (BDS) movement against Israel, making false accusations about the Jewish state, ignoring Israel’s position on the conflict, or justifying the actions of the terrorist group Hamas. Many of these [...]

    Read more →



Sign up now to receive our regular news briefs.