The "Development Road": A EUR 16 bln Iraqi Project to Link the Gulf to Europe

At the end of May 2023, Iraq announced a EUR 16 billion megaproject aimed to link the Southern part of the country to the European rail and road networks. The project, dubbed “Development Road,” aims to connect the Grand Faw Port located in Southern Iraq to Turkey, and then connect into European transit networks.   

The ultimate goal of the project is to transform Iraq into a regional transit hub. This ambitious initiative is expected to reduce travel time between Asia and Europe, effectively competing with the Suez Canal.

According to the plan detailed in the proposal, Iraq is to build 1,200 kilometres of dual-track railway networks, 15 train stations and a new highway to facilitate the transportation of passengers and goods originating from Grand Faw Port, currently under construction. Farhan al-Fartousi, director general of the General Company for Ports of Iraq, said "The Development Road is not just a road to move goods or passengers. This road opens the door to the development of vast areas of Iraq." 

The estimated cost of the project is set at around EUR 16 billion. The Development Route is expected to generate annual revenues of EUR 3.7 billion and create no fewer than 100,000 jobs.

The project will encompass a variety of areas, including the implementation of a high-speed rail network capable of transporting goods and passengers at speeds of up to 300 kilometres per hour. It also involves establishing connections to local industry hubs as well as the potential construction of oil and gas pipelines. The Grand Faw Port is also to undergo expansion to accommodate the increased cargo volume associated with the project.

Iraqi Prime Minister Mohamed Shia al-Sudani announced the project during a special summit held in Baghdad that brought together transport ministry representatives from the Gulf Cooperation Council (GCC), Syria, Jordan and Iran as well as representatives from the European Union and the World Bank. The proposal was presented in the hope of garnering investments from its neighbours and international players. "We see this project as a pillar of a sustainable non-oil economy, a link that serves Iraq's neighbours and the region, and a contribution to economic integration efforts," Sudani said. 

This ambitious proposal to develop passenger transportation between Iraq and Europe is not new. In the early 20th century, a similar route was established as a direct express route from Baghdad to Berlin to transport passengers and goods. The project was only completed in the 1940s.   

Ravaged by more than a decade-long war, Iraq is endeavouring to attract foreign direct investments to rebuild its road and main energy infrastructure facilities. By developing the project, Iraq also attempts to join China’s Belt and Road Initiative, which will link about 70 countries in Asia, Africa and Europe.