World Bank Greenlights $930 Million Investment to Revitalize Iraq's Railway Infrastructure

According to a recent report from the World Bank, a significant investment of $930 million has been greenlit for the Iraq Railways Extension and Modernization initiative. This project focuses on upgrading the extensive 1,047 km railway line that connects the southern port city of Umm qasr with Baghdad and Mosul.

The primary goal here is to enhance the current rail system, boosting its capacity while cutting down travel times. This upgrade aims to increase freight transport volumes and provide better access to lasting transportation options.

A variety of key tasks will be undertaken, such as refurbishing existing tracks where necessary, implementing European Train Control System (ETCS) technology, maintaining locomotives and rolling stock, revamping the Baiji workshop facilities, and acquiring essential maintenance tools and spare parts.Additionally, a safety management framework will be established that includes improvements at level crossings along with community awareness initiatives focused on emergency preparedness and staff training.

This initiative also encompasses technical support aimed at enhancing how Iraqi Republic Railways operates. Part of this effort involves crafting a reform action plan for the railway sector while exploring ways to divest non-essential assets. The project seeks to attract private sector investment for developing dry ports and logistics hubs and also providing training opportunities for IRR personnel—especially encouraging female involvement in this traditionally male-dominated field.

The implementation will fall under IRR’s jurisdiction with oversight from the Ministry of Transport. An international firm is set to be appointed as an agent responsible for managing capital expenditures effectively.

If all goes according to plan by 2037,projections suggest that this railway could handle around 6.3 million tonnes annually in domestic freight alongside approximately 1.1 million tonnes in exports/imports—including goods like grain and construction materials—as well as accommodating about 2.85 million passengers each year.

The World Bank highlighted that ther’s a growing revival of rail systems across the Middle East which is crucial for strengthening trade routes both regionally and internationally—linking Asia with Europe—to foster economic growth within these areas. They noted that Iraq’s rail network currently faces challenges such as poor connectivity due to disrepair coupled with insufficient funding; thus making investments like these vital steps toward improving both national infrastructure and regional links.

“As Iraq transitions from merely rebuilding towards genuine development,” remarked Jean-Christophe Carret, Director of Middle East Division at World Bank after board approval on June 24th,“enhanced trade connections can spur economic growth while creating job opportunities—ultimately reducing reliance on oil.”