Recently, the development of the Iraqi highway and railway project is shifting from the early planning stage to the detailed design and financing mechanism improvement stage. This planned traffic corridor of about 1200km starts from Dafa'ao Port near Basra in the south and extends northward to the border of Türkiye. The core works include railway lines and parallel expressways, and supporting construction of bridges, stations, technical facilities and related transportation infrastructure. The overall investment estimate for the project is approximately 17 billion US dollars, which is not yet the amount of a single construction contract that has been signed. From the port of Great Fao on the Persian Gulf to the border of Türkiye, a major transportation artery that runs through the north and south of Iraq is moving from blueprint to reality.

A thousand two kilometer transportation corridor

The project plans to build a transportation corridor of about 1200 kilometers, starting from the Port of Great Faio near Basra in the south and extending to the border of Türkiye in the north. The core project includes railway lines and parallel highways, with highways planned as dual carriageways and railways catering to both freight and passenger needs. Engineering design covers lines, bridges, stations, and supporting facilities, as well as the construction of supporting bridges, stations, technical facilities, and related transportation infrastructure. After the completion of this corridor, it will connect the southern ports of Iraq with the northern border, forming a north-south land transportation corridor, which is of great significance for the post-war infrastructure reconstruction and regional connectivity in Iraq. At present, the project has shifted from early planning to detailed design and financing mechanism improvement stage. Subsequent construction will be carried out based on financing implementation, contract signing, and phased implementation arrangements. The specific sub contract amount, construction quantity list, and commencement time are still to be officially announced.

Exploration of crude oil payment financing

In October 2026, Iraq and Türkiye will continue to discuss the establishment of a special financing fund to explore the cooperation mechanism of paying the project construction costs with crude oil. If this financing arrangement is implemented, it will provide a stable source of funding for the project and also reflect Iraq's attempt to explore diversified financing models in post-war reconstruction. The first phase of the project plans to provide financial support through World Bank loans, and the participation of the World Bank will provide credit endorsement and financing guarantees from multilateral financial institutions for the project. The simultaneous progress of financing arrangements and detailed engineering design has become a key link in whether the project can enter the substantive construction stage. The overall investment estimate for the project is about 17 billion US dollars, which is not yet the amount of a single construction contract that has been signed. The specific financing structure and funding rhythm still need to be further clarified. Keywords: infrastructure news and information, international, infrastructure, transportation

The phased implementation is yet to be clarified

The project has shifted from early planning to detailed design and financing mechanism improvement stage, with engineering design covering lines, bridges, stations, and supporting facilities. The subsequent construction will be carried out according to the implementation of financing, contract signing, and phased implementation arrangements. The specific sub contract amount, construction quantity list, and commencement time are still to be officially announced. The overall investment estimate for the project is approximately 17 billion US dollars, which is not yet the amount of a single construction contract that has been signed. From the perspective of regional pattern, this transportation corridor will strengthen the land connection between Iraq and Türkiye, provide new channel options for trade exchanges between the Gulf region and Europe, and also echo Iraq's overall strategy of promoting the construction of the Great Franco Port. With the gradual clarification of financing mechanisms and the deepening of design work, the project is expected to enter substantive construction in the subsequent stages, injecting new momentum into Iraq's infrastructure reconstruction and regional connectivity.Editor/Gao Xue