GeoEconomic Disinformation: Israel is not going to import goods through a land bridge between Dubai and Haifa ports
Trucknet Enterprise, an Israeli shipping data platform, reported Tuesday an agreement in principle for cooperation with the UAE-based Puretrans (based in the Free Economic Zone), which works in cooperation with Dubai Ports and specialises in logistics, freight and transportation brokerage. As part of the agreement, the parties will cooperate so that cargo shippers and transport service providers can make use of the Trucknet platform to optimise transport between Dubai and Haifa ports for distance and cost. Specifically, Trucknet services for users of the supposed land bridge route will include automation of cargo transportation, real-time tracking of trucks and the status of shipments, emissions calculations for each shipment and more.
The story has been widely shared by many as evidence of the UAE offering a lifeline to Israel as it struggles to use the red sea to import necessary items from Asia after Yemen imposed a sea embargo on Israeli ships passing through the red sea. An investigation by MENA Unleashed reveals that this story is fake and incorrect.
First, Truknet is a data platform not a cargo shipping company. Second, Puretrans has no online profile and does not seem to have any public activities or record. This may have to do with its location in the Free Economic Zone, but such a company based on our investigation does not exist. Third, Truknet seems to be manipulating its stock price which has risen 22% since the announcement after falling 85% since IPO in 2021. The company is capitalising on Israelis anxiety about the Yemeni siege and the growing insurance premium shipping companies have to pay to get their ships. Lastly, there is no need for trucks destined to Israel to reach Haifa port. Hence, the claim is illogical as trucks will unload sooner before reaching Haifa in the west of the country.
Israel is currently seeking to establish an international alliance to protect its ships in the red sea. However, since the siege targets only Israel, it is uneconomic for other countries to get involved as the cost of protecting Israeli ships will be high and not beneficiary to other countries with the military maritime power to do so. However, Israel is arguing that the Yemen embargo is an international one and linked to Somali piracy. Houthis have threatened that such an alliance will be targeted and will not change its determination to pressure Israel to end its war on Gaza. They have also threatened the UAE and Saudi of renewed attacks in case of complacency with Israel.
Houthis in Yemen have been attacking Israeli ships by drones and torpedoes in solidarity with the Palestinian people in Gaza. As a result, Israelis have seen severe delays to their shipments and significantly higher costs to goods. As the crisis prolongs, there are fears shipping companies will stop altogether from taking cargo to Israel as economic feasibility diminishes. Currently, many ships are being re-routed to lengthier routes which is significantly reducing the economic case for doing business with Israel. Israeli companies and think tanks have urged the government to take part in offering guarantees to insurance companies to reduce the business risk and cost for dealing with Israel.
The theoretical land bridge is part of the India – Middle East – Europe Economic Corridors announced earlier this summer by Biden and endorsed by Israel, Saudi Arabia, and the UAE which aims to enable land trade between India and Israel through Saudi and the UAE. The IMEC feasibility has been since questioned by many and MENA Unleashed most popular story has been about that which you can visit here https://menaunleashed.substack.com/p/the-clash-of-corridors-with-maps