Iraq unveiled a $17 billion transit initiative connecting the Middle East and Europe

Iraq unveiled an ambitious initiative on Saturday aimed at transforming itself into a pivotal regional transportation centre by enhancing its road and rail infrastructure, creating vital connections between Europe and the Middle East. The $17 billion undertaking, named the "Route of Development," is slated to cover the entire length of the country, spanning 1,200 km from its northern border with Turkey to the southern Gulf.

Prime Minister Mohamed Shia Al-Sudani introduced the project during a conference attended by representatives from the Transport Ministries of Iran, Jordan, Kuwait, Oman, Qatar, Saudi Arabia, Syria, Turkey, and the United Arab Emirates. Despite being rich in oil, Iraq has grappled with the aftermath of war and widespread corruption, resulting in deteriorating infrastructure. The country's roads, marked by potholes and insufficient maintenance, currently face challenging conditions. Moreover, the routes from Baghdad to the north traverse areas where sporadic attacks still occur due to remnants of the Daesh group.

“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,” Al-Sudani said. While further discussions are required, any country that wishes “will be able to carry out part of the project,” the Iraqi parliament’s transport committee said, adding the project could be completed in “three to five years.”

“The Route of Development will boost interdependence between the countries of the region,” Türkiye’s ambassador to Baghdad Ali Riza Guney said.

Al-Sudani has prioritized the reconstruction of Iraq's road network and the modernization of its struggling electricity infrastructure. The development of the road and rail corridor is envisioned to leverage Iraq's strategic geographic location, aspiring to establish the country as a central hub for the movement of goods and people between the Gulf, Turkey, and Europe. Initiatives are underway to expand capacity at the commercial Port of Al-Faw on the Gulf's shores, where cargo will be unloaded before embarking on the new road and rail connections. The comprehensive project also entails the construction of approximately 15 train stations along the route, including in major cities such as Basra, Baghdad, Mosul, and up to the Turkish border. The Gulf, predominantly bordered by Iran and Saudi Arabia, serves as a crucial shipping zone, particularly for transporting hydrocarbons extracted by regional countries.

Despite the grand vision, Zyad Al-Hashemi, an Iraqi consultant specializing in international transport, expressed scepticism about the plan, citing a lack of "fluidity." “Customers prefer to transport their goods directly from Asia to Europe, without going through a loading and unloading process,” that would see containers moved between ships and road or rail, he said. The transportation sector plays a pivotal role in the global economy, and Iraq's announcement aligns with other international megaprojects, such as China's "Belt and Road Initiative," introduced in 2013 by President Xi Jinping. The ambitious Chinese initiative aims to connect 130 countries across Asia, Europe, and Africa through comprehensive land and sea infrastructure, facilitating greater access to China.