Economy Update – Baghdad
The Ministry of Transport has announced the initiation of discussions regarding various conflicts and coordination efforts related to the development road project across three governorates.
The development road project spans 1,200 kilometers and is designed to facilitate the transportation of goods and travelers, as well as include rail services. It will connect the Paw Port in Basra Governorate to Turkish territory.
Estimated to cost $17 billion, the project allocates $10.5 billion for the procurement of modern electric trains and $6.5 billion for extending the railway line. The first phase is slated for completion in 2028, while the final phase is expected to conclude in 2050.
The concluding phase of the project, set for completion in 2025, will detail bridges, buildings, and stations, after which implementation will be opened to bidding companies.
Progress and Project Insights
“We are committed to adhering to the timeline set for the development road project, engaged with an Italian consulting firm specializing in engineering and design, alongside another consultancy firm,” stated Mettham Al-Safi, spokesman for the Ministry of Transport.
Al-Safi further noted that “the preliminary design stages have been successfully completed, and we have now entered the detailed design phase, where continuous progress focuses on constructing structures, bridges, and key locations along the development road.”
He remarked that “recent meetings involving the Minister of Transport, several governors, and an adviser to the Prime Minister addressed ongoing governmental and civil conflicts in Muthanna, Salahuddin, and Karbala, with further discussions anticipated in additional provinces.”
Project Pathways and the Grand Faw Port
Concerning railway and ground operations, Al-Safi highlighted that the detailed designs show significant advancements and that field teams are actively studying the project routes.
On the Grand Faw Port project, Al-Safi confirmed that work is progressing well, with the five sidewalks from the executing company completed and the first components of the submerged tunnel ready. This critical connection links the Paw Port to Umm Qasr and complements the 26 km access road toward Safwan, marking a pivotal component of the development road project.
“Current achievement rates in the container yard at the Paw Port have exceeded 86%, while road construction has reached over 97%. Several bridges are nearing completion,” Al-Safi added. “Navigational drilling operations are ongoing, and we aim to finalize port projects according to schedule, targeting the completion of the first phase of the Grand Faw Port project by 2025.”
A railway connection spanning 112 kilometers will link this new port line to existing railway networks.
Coordination with the Kurdistan Region
Al-Safi emphasized that coordination with the Kurdistan Region remains strong and is part of the broader initiative undertaken by the Iraqi government.
“The Kurdish community is an integral part of the Iraqi nation, and as such, their interests are taken into account in this project,” he explained, asserting that decisions will be guided by technical considerations provided by advisory firms.
The project is being executed by 15 companies, with anticipated annual revenues projected to reach $4 billion.
