Iraq has launched a USD 17 bn project to link Grand Faw Port in Iraq’s southern Basra province to Turkey in the north through rail and road infrastructure, Reuters reports. The project’s launch was announced at the Development Road Conference in Baghdad this weekend, according to the Iraqi News Agency. By significantly reducing travel time between Asia and Europe, this project aims to compete with Egypt’s Suez Canal and to revitalize the country’s economy following years of war and crisis.

The details: The project will involve high-speed trains that can transport goods and passengers at speeds of up to 300 km per hour, while the road network is anticipated to facilitate the transportation of some 5-6 mn containers and mns of passengers annually, Bloomberg reports. This plan also includes establishing connections to local industrial hubs and incorporating an energy component that may involve oil and gas pipelines, according to Reuters.

The timeline: The project will be completed in three stages, with the first stage slated for completion in 2028, the second in 2038, and the third in 2050, according to Bloomberg. The project could after 2028 be expanded to become a “new window for exporting gas and crude oil from Iraq and neighboring countries to Turkey and Europe to meet future energy consumption requirements,” government spokesperson Basim Al Awadi told reporters, according to the business information service.

Iraq aims to secure financing from neighboring countries for the project, which is expected to generate around USD 6 bn in annual revenue, Al Awadi said. Some USD 10.5 bn will be allocated towards the construction of 1.2k km of rail infrastructure and the procurement of new trains. The remaining USD 6.5 bn will be allocated for 1.2 km of highways, according to Bloomberg.

The Grand Faw port is crucial to the project: The government plans to make the first phase of the port — which was planned over 10 years ago — operational by mid-2025, Iraqi Transport Minister Razzak Al Saadawi said at the presser announcing the project (watch, runtime: 00:52). The port is currently halfway finished, Director General of the General Company for Ports of Iraq Farhan al Fartousi said, according to Reuters.

The project represents a major shift from Iraq’s current outdated transportation system: Iraq’s train service currently has only a few operational routes, including “slow oil freight” and one overnight passenger train that makes the 500 km journey from Baghdad to Basra in 10 to 12 hours, Reuters writes.

What’s next: “In the next stage, the GCC will study the mechanism of benefiting from this project,” the Undersecretary of Qatar’s Transport Ministry Hamad Issa said, INAreports.

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