21.6 C
Iraq
Thursday, October 30, 2025

Al Busttan Signs Contract with TotalEnergies for Ratawi Development

Al Busttan has signed a major contract with TotalEnergies to support the Ratawi oil field redevelopment in Iraq. The deal marks a significant step...
HomeEconomyIraq Begins First Phase of Development Road

Iraq Begins First Phase of Development Road

Iraq announced plans to start the first phase of the Development Road project. Prime Minister Mohammed Shia al-Sudani directed the Transport Ministry to prepare for work on the $17 billion plan. The first step will focus on rehabilitating the al-Faw–Fishkhabur railway.

Additionally, Al-Sudani stressed the project’s importance for linking Iraq to trade routes across the region and the world. He pointed out that many partners outside the Middle East have shown strong interest in joining.

Officials reviewed railway designs to improve efficiency and cut delays. They also discussed funding for the initial section in next year’s budget. Key connection points along the planned route received close attention during the talks.

The World Bank expressed readiness to support the project. This includes funding the first stage and helping modernize Iraq’s railway network. Such backing adds to the project’s potential and credibility.

At the southern end, the Development Road starts from the Grand Faw Port. The port will become the largest in the Middle East. Workers are building five berths, a 62-kilometer access road, a submerged tunnel, and a container yard. They plan to finish all of these before the end of 2025.

Iraq’s recent entry into the UN-backed TIR Convention has already brought faster cargo movement. Transit times between Europe and the Gulf have been cut in half. This progress adds more weight to the Development Road’s economic promise.

The full Development Road will stretch for 1,200 kilometers. It will serve both freight and passenger transport. The route will run from the Grand Faw Port in Basra to Turkiye, and then connect to Europe. A combination of rail and highway links will make the route faster and more reliable.

The project aims to reduce travel times between Asia and Europe. It will also raise Iraq’s income from transit services. In addition, it will boost industrial activity and encourage new cities and towns to grow along the corridor.

Iraq’s move to start the Development Road project shows a clear vision for the future. It combines infrastructure growth with economic ambition. The work will connect Iraq more closely to global markets while supporting local development.