The World Bank has approved a two billion dollar loan for Türkiye’s Bosphorus rail connection (INRAIL). The sea strait is currently a major bottleneck for rail traffic between Europe and Asia. In total, international institutions are gearing up to provide 6.75 billion dollars in financing.
International support for the project is substantial. The total cost is projected at 8.3 billion dollars, and Turkiye can count on some seven billion dollars in foreign financing. Earlier in March, the European Bank for Reconstruction and Development also launched a project to provide 500 million euros in funding for INRAIL.
The World Bank explains that its loan will help to pay for the construction of a 127-kilometer, electrified, high-capacity rail line across the Bosphorus strait. INRAIL will also bypass the Istanbul metropolitan area, significantly improving capacity along the route.
A transformative project for Türkiye
INRAIL will be a highly impactful project for transport and the broader economy of the area, says the World Bank. “This project is a strategic and transformative investment for Turkey. By eliminating the critical railway bottleneck in the Bosphorus strait, it will enhance the resilience and efficiency of railway infrastructure, increasing Turkey’s competitiveness and strengthening its role as a logistics hub”, the Bank quotes its Türkiye Country Director, J. Humberto Lopez, as saying.
“Indeed, the project will accelerate growth, create jobs, and contribute to more sustainable transportation. Furthermore, INRAIL will benefit the wider region by enabling the transport of goods between Europe and Central Asia, connecting to other international corridors such as the Middle Corridor and the Development Route, which provides traffic between Europe and the Gulf via Iraq. In fact, this is much more than just building a bridge; it’s about connecting continents.”
In total, rail freight capacity across the Bosphorus should grow from 3 million tonnes annually to 50 million tonnes.