The Media Line: Turkey Says $20 Billion Iraq-Europe Trade Route Could Generate $55 Billion Over Decade  

Turkey Says $20 Billion Iraq-Europe Trade Route Could Generate $55 Billion Over Decade  

By The Media Line Staff  

Turkish Transport and Infrastructure Minister Abdulkadir Uraloglu said at a conference in Ankara that the Development Road Project linking Iraq, Turkey and Europe could contribute about $55 billion to the Turkish economy over the next decade, Anadolu Agency reported Monday.  

Uraloglu said the project would strengthen efforts to diversify international transportation networks by adding a north-south trade route to the Middle Corridor, an east-west transportation network connecting Asia and Europe.  

The proposed corridor would run about 1,200 kilometers (745 miles) from the Grand Faw Port in Basra, southern Iraq, through the country to the Ovaköy border crossing with Turkey. From there, it would connect with transportation networks extending into Europe.  

Railways and highways would form the core of the estimated $17 billion to $20 billion project, which also envisions telecommunications and energy infrastructure, including oil and natural gas pipelines. The route would pass through major Iraqi cities, including Baghdad and Mosul.  

Uraloglu said the corridor would provide an alternative transportation route between the Gulf and Europe while reducing dependence on the Strait of Hormuz. Ankara also expects the project to help integrate fragmented economic networks in the Middle East, establish Iraq as a regional trade hub and expand Turkey’s role in global transportation networks.  

Plans call for the railway to receive priority during the first phase, while the highway network would be developed in subsequent stages. The decision to prioritize rail comes as conflicts in the Middle East and disruptions to maritime traffic in the Red Sea have affected regional trade routes.  

Turkey estimates the project could create roughly 70,000 jobs annually and generate $55 billion for its economy over 10 years. Its potential annual economic value could reach $80 billion if the route is fully developed as an energy corridor for oil and natural gas.  

Baghdad and Ankara have finalized drafts of bilateral implementation agreements for the project. Efforts to secure financing have included an oil-for-financing framework and sovereign investment vehicles. 

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