How Türkiye attempts to use rail to become a logistics hub

Türkiye has ambitions. It is strategically located at the crossroads of Europe and Asia, giving it plenty of opportunity to benefit from trade flows transiting its territory. Rail is set to play an important role, and while there already is momentum, there is also considerable room for growth and challenges to be overcome.
“Rail freight in Türkiye has undergone a significant transformation over the past decade”, says the Turkish Railway Transport Association (DTD). The total rail freight volume amounted to 31,7 million tonnes in 2023, up from around 26,5 million tonnes ten years prior. “Major infrastructure investments on the public side and the gradual involvement of the private sector have triggered notable momentum in the industry”, DTD explains.

Yet, Turkish rail freight remains modest in size. It only accounted for 5% of the total transport share in the country. By comparison, its 31,7 million tonnes dwarf Germany’s nearly 370 million tonnes in 2023. Poland’s rail freight volume totalled 223,5 million tonnes in 2024, and the Netherlands achieved 39,7 million tonnes. DTD concludes: “There’s clearly room for growth.”

Major infrastructure projects

And growth there may be. Türkiye has some major projects going on that could elevate the position and performance of its rail sector. It has equipped 8,000 kilometres of rail with signals and electrified some 7,100 kilometres. “Crucial advancements for environmental sustainability and operational efficiency”, says DTD.

Just as important are some large-scale infrastructure projects. Take, for example, the Baku – Tbilisi – Kars line, spanning the southern Caucasus region. Its completion has given Türkiye a key role in China – Europe rail traffic along the Middle Corridor.

But on the other side of the country, connections to Europe are also being developed. “The Halkalı-Kapıkule railway project is the most significant initiative in this context”, explains DTD. “Funded in part by the EU, the project will strengthen Turkey’s integration into the Trans-European Transport Network (TEN-T).” Once completed, the electrified double-track line will “improve both freight and passenger capacity, reduce transit time, and yield environmental benefits”. It will connect Istanbul to the EU’s southern Bulgarian border.

In February, Türkiye completed the drilling of a tunnel on the Halkalı-Kapıkule line, a major step forward in its development.

DTD also points to the Development Road, an Iraqi infrastructure project that could link Türkiye to the Persian Gulf, as a promising development. “This North-South axis will complement the East-West corridors and transform Türkiye into a multidirectional logistics intersection. Strengthening the railway components of the Development Road would allow for faster, greener, and more integrated transport with Gulf countries”, the association says.

In other words, there is plenty of track work ongoing. But also when it comes to terminals, the country is boosting capacity by quite a lot. Türkiye currently has 13 operations centres. That is set to grow by nearly 50%: 6 more are under construction. “However, site selection issues in certain locations have affected efficiency, highlighting the need for not only physical, but also strategic planning”, DTD points out.

The challenges

In order to make the most of these rail opportunities, there are still obstacles to conquer. For one, rail is not an easy sector financially. Rolling stock is expensive, and it takes a long time to pay itself back. To make matters worse, the Turkish interest rate is now 46%, meaning that cheap financing in Lira is difficult to find. A major barrier to market entry and growth, says DTD. There is a need for adequate financial support mechanisms.

At the same time, many of Turkey’s rail lines are still single-track, non-electrified, or non-signalled, the rail association explains. “Steep gradients and tight curves reduce capacity and efficiency. Furthermore, private sector access to rail infrastructure faces technical and operational constraints. Critical “last-mile” connections, particularly to ports and industrial zones, are often missing.”

And lastly, there are administrative imperfections that hinder rail freight development. Confusion over the roles and mandates of institutions, legal ambiguities and slow decision-making hinder private sector engagement. Delays in introducing fair regulations and equal market conditions also undermine competition, says DTD.

Nevertheless, DTD is optimistic about the future of Turkish rail freight. The challenges are not insurmountable, it says. “DTD is committed to being part of the solution, as a policy developer, facilitator, and strategic partner.”

Besides the Turkish enthusiasm for rail transit through its territory, there is also interest from the east. China, Iran, and Central Asian countries seem to have an open mind about developing a new corridor to Türkiye through Iran.

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