Iraq secures USD 930 mn for rail upgrades: The World Bank has greenlit USD 930 mn in funding for the Iraq Railways Extension and Modernization (IREM) project, seeking to revamp the country’s rail sector and boost its connectivity, according to a statement. The project is set to revamp over 1k km of rail lines — connecting the northern and southern parts of the country, supporting the replacement of the aging fleet and rolling stock, refurbishing maintenance facilities, and raising capital for ports and logistics hubs.

The end goal(s): The IREM project aims to boost the rail line’s containerized and bulk cargo capacity to reach 6.3 mn tons of freight domestically and 1.1 mn tons of trade commodities by 2037, targeting a passenger capacity of about 2.9 mn. The project is set to generate about 21.9k jobs annually by 2040 due to expected multi-sector growth.

Who’s doing what: Iraq’s national rail operator Iraqi Republic Railways (IRR) will carry out the project under Iraqi Transport Ministry oversight, and an international firm will be recruited as a CAPEX management agent to help the IRR enhance its capacity to manage large capital expenditure programs and oversee contract execution.

The rationale(s): The rehabilitated rail lines aim to make cross-country travel faster, raise freight capacities, and widen access to transport. They come as part of a country-wide effort to revive Iraq’s logistics sector through multiple initiatives — including regional ones like the Iraq Development Road, which seeks to connect Iraq’s logistics hotspots like the Grand Faw Port to Turkey via rail and road. The project would also serve as a strategic pivot away from Iraq’s dependence on trucks, which is set to lower road maintenance costs.

ICYMI- Ankara earmarked USD 17.9 bn tp develop railway links for the project last year. The UAE, Iraq, Turkey, and Qatar inked a preliminary agreement last year to collaborate on the project.

What they said: "The IREM project is vital for transforming Iraq into a regional transport hub and helping achieve the [Iraqi Development Road’s] goals of improved connectivity and economic diversification and growth," World Bank Middle East Division Director Jean-Christophe Carret said.

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