Work on USD 20 bn GCC-Europe trade route to begin in mid-2025

Work on a USD 20 bn regional trade route connecting the Gulf to Europe through Iraq will start in mid-2025, INA reported on Thursday, citing statements by Iraq’s Transport Minister Razzaq Al Saadawi during a press conference in Istanbul.

ICYMI- Al Saadawi’s statements come after a quadripartite meeting between counterparts from Turkey, Qatar and the UAE on updates on the planned project which is set to facilitate trade movement between the two regions via road and rail. The meeting in Turkey was the first since Turkish President Recep Tayyip Erdogan visited Baghdad in April for the first time in over a decade.

Background: The UAE, Iraq, Turkey, and Qatar signed a preliminary agreement in April to work together on the Road Development project in Iraq, which aims to connect a significant commodities port on Iraq's southern coast — the Grand Faw Port — to Turkey's border via rail and road networks. The Iraqi Transport Ministry inked an agreement in July with consulting firm Oliver Wyman to help market the project, supervise investments, and provide economic advisory services for strategic government projects.

Ironing out the details: “The first phase of the strategic Road Development project will be implemented in mid 2025 after finalizing detailed designs for the project,” Al Saadawi said. He said the project’s railway track was 100% complete, while the expressway was 75% complete.

A topographic survey for the project was also finalized, he added.

Benefit for all: The project will help ensure a strong economy and diversified revenues for Iraq, serving the whole region and the world, Al Saadawi said. He said work on completing the requirements for the project between the four parties was going well. “The Road Development project will support the sustainability of global trade by diversifying international trade corridors,” Bloomberg reported, citing statements by Turkey’s Transportation Minister Abdulkadir Uraloglu to TRT television on Friday. “Turkey will strengthen its economic and strategic advantages by creating a reliable and effective trade corridor between Asia and Europe,” Uraloglu added.

What’s next: The next quadripartite meeting will be held in Baghdad within two months, Al Saadawi said, without providing further details.

IN PORT NEWS-

Iraq is looking to increase the handling capacity at Umm Qasr port to 1.5 mn containers annually on the back of a sector overhaul by the country’s transportation ministry, INA reported. “The Umm Qasr port will be expanded with additional phases under a plan to raise its capacity to 1.5 mn containers annually. The plan will also include oil ports and smaller ports…,” Iraq Railways Company Director General Yunus Jawad told INA. The national railway operator would need USD 3 bn to upgrade and develop its railways in line with the country’s Iraq Road Development project. Part of the funds would be acquired through loans from the World Bank while the remainder would be financed from the federal budget, Jawad said.