Under the leadership of Prime Minister Mohammed Shia Al-Sudani, Iraq’s Higher Committee for the Development Road project has approved the creation of a specialized company to manage the $17 billion strategic initiative.
During a recent meeting attended by senior Iraqi officials and representatives from Oliver Wyman, a prominent New York-based international consulting firm, the Prime Minister instructed the Iraq Development Fund to establish the company tasked with overseeing the project’s execution.
Al-Sudani also directed Oliver Wyman to coordinate a joint meeting with Iraqi and Turkish officials to finalize the project’s governing regulations and framework.
A Strategic Corridor Linking Asia to Europe
The Development Road project aims to establish a road and rail corridor connecting the Al-Faw Grand Port in southern Iraq to the Turkish border, ultimately serving as a vital trade and transport route between Asia and Europe. Given its strategic importance, the project has attracted interest and support from regional, Arab, and European countries, many of which have expressed a willingness to contribute financially or assist with construction.
In April 2024, Iraq, Turkey, the United Arab Emirates, and Qatar signed a quadripartite agreement under the direction of Turkish President Recep Tayyip Erdoğan and Iraqi Prime Minister Al-Sudani, aiming to strengthen cooperation and establish the frameworks necessary for implementation.
The project is envisioned as a catalyst for regional integration, economic growth, and global connectivity, fostering deeper partnerships between the East and the West.
Regional Collaboration Expands
In November 2024, Iraqi Transport Minister Razzaq Al-Saadawi announced that Turkey had formed a regional council involving Bulgaria, Hungary, and Serbia to facilitate European connection with Iraq’s Development Road.
He also confirmed that Iraq’s Ministry of Transport has completed initial designs and begun work on final plans for the railway component of the project.
Project Features and Economic Impact
The Development Road project includes:
A railway system for freight transport, with an initial capacity of 3.5 million tons and a second-phase capacity of 7.5 million tons
A highway for land transportation
Pipelines for energy transport across the corridor
Once completed, the project is expected to:
Boost international trade
Create significant employment opportunities
Open new investment channels for Iraq and its neighboring countries
Reinforce Iraq’s position as a logistics and transit hub in the region
Source: IraqiNews.com
