World Bank approves $660 million for electric railway development in Türkiye

The World Bank has approved $660 million in funding to aid Türkiye's efforts to develop electric railway infrastructure, with a focus on modernizing the Divriği-Kars railway segment.

Announced on December 5, 2024, the financing will support the electrification and modernization of a 660-kilometre stretch of railway connecting the provinces of Sivas, Erzincan, Erzurum, and Kars, Caliber.Az reports citing the World Bank's announcement.

“By modernizing and expanding rail connectivity, Türkiye can make progress towards several strategic goals, including boosting local economies and creating jobs in underserved areas, contributing to the country’s objective of becoming a logistics hub and decarbonizing the transport sector,” said Humberto Lopez, World Bank Country Director for Türkiye.

The initiative is part of the Trans-Caspian International Transport Route (TMTM), also known as the Middle Corridor, which links China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, Türkiye, and European destinations.

The project will replace diesel trains with electric ones along the Divriği-Kars segment, enhancing regional connectivity and benefiting an estimated 600,000 residents. Local businesses and agricultural enterprises are also expected to gain significantly from improved transport efficiency.

Upon completion, the freight capacity on this corridor is projected to increase dramatically, from approximately 750,000 tonnes to 20 million tonnes annually. This upgrade aims to eliminate a major bottleneck along the TMTM route.

Additionally, the project is set to deliver substantial environmental benefits. By 2030, carbon emissions are expected to decrease by 72,332 tonnes annually, rising to a reduction of 245,835 tonnes by 2060.

The total estimated cost of the railway modernization is $800 million, with the World Bank providing a significant portion of the funding.

The World Bank is working with other development partners to support the expansion of the Middle Corridor in Türkiye. Additional financing for the Eastern Türkiye Middle Corridor Railway Development Project is being provided by the Islamic Development Bank and Asian Infrastructure Investment Bank, to supplement sizable financing from the Government of Türkiye.

“By improving climate-resilient connectivity to economically-lagging regions, the project has the potential to significantly benefit women, youth and vulnerable communities by creating jobs and providing improved access to markets,” said Murad Gurmeric, one of the World Bank Project Team Leaders.

Founded in 1944 and headquartered in Washington, D.C., the World Bank operates in over 120 countries, offering financial assistance and strategic advisory services. Beyond development financing, it conducts research on global issues like poverty, environmental sustainability, and economic growth, helping countries address complex challenges with data-driven insights.

By Tamilla Hasanova