World Bank: Development Roadmap Will Significantly Increase Trade Within Iraq
World Bank: Development Roadmap Will Significantly Increase Trade Within Iraq
6-25-2025
Al-Maalomah/Baghdad..
The World Bank announced, on Wednesday, financing Iraq with $930 million in four sectors. While indicating that the development path will significantly increase trade within Iraq and at the regional level, it noted that the railway line along the path will benefit nearly 17 million people.
The bank stated in a statement received by Al-Maalomah Agency, that “the World Bank’s Board of Executive Directors approved financing worth $930 million to improve the performance of railways in Iraq, promote internal trade, create jobs, and support economic diversification within the framework of this financing.”
He added, “The Iraq Railways Extension and Modernization (IREM) project will modernize the railway infrastructure and services between the port of Umm Qasr in southern Iraq and Mosul in northern Iraq, contributing to reducing travel and transportation time, increasing freight volume, and improving infrastructure and sustainable transportation services and providing them to users and passengers.” He noted that “the Middle East is witnessing a significant boom in regional railway development, which enhances trade routes across the region and with the continents of Asia and Europe, contributing to enhancing connectivity services and driving economic growth in the region.”
He emphasized that “regional initiatives include the Iraq Development Road, which was announced in May 2023 with the aim of transforming Iraq into a pivotal transportation hub by linking the Gulf region with Iraq, all the way to the Turkish border and on to Europe.” He noted that “once connectivity to existing ports and infrastructure is enhanced, this road can significantly increase trade flow within Iraq and across the region.”
The bank continued, “Given that Iraq’s railway sector suffers from limited connectivity, poor repair and maintenance services, and a lack of financing, investments in the existing railway network are an essential first step towards strengthening connectivity at the national and regional levels.”
The World Bank’s Regional Director for the Middle East, Jean-Christophe Carré, stressed, according to the statement, “As Iraq transitions from reconstruction to development, enhancing trade and connectivity can stimulate economic growth, create new jobs, and reduce dependence on oil.” He added, “This project is of great importance in transforming Iraq into a regional transport hub and achieving the goals of Iraq’s development path, which are improving connectivity, diversifying economic activity, and increasing growth rates.”
The bank explained that “the Iraq Railway Expansion and Modernization Project will rehabilitate and modernize 1,047 kilometers of existing railway lines linking Umm Qasr Port to Mosul via Baghdad, in addition to supporting the modernization of the locomotive and train car fleet, renovating the maintenance workshop in Baiji, and purchasing the necessary equipment and spare parts. The project will also work to enhance private sector capital participation in the establishment of dry ports and logistics service centers that provide sustainable, highly skilled job opportunities.” It explained that “the project will enhance railway safety by implementing a comprehensive safety management system, modernizing infrastructure, improving railway crossings, implementing community awareness campaigns, enhancing emergency preparedness, and training workers.”
He pointed out that “the project will include technical assistance to improve the institutional performance of the Iraqi General Railways Company, develop an action plan to reform the railway sector, and identify opportunities for private sector participation. In addition, the project will provide training programs for Iraqi General Railways Company employees and support women’s participation in this sector. The Iraqi General Railways Company will implement the project under the supervision of the Ministry of Transport.” He explained that “to support successful and rapid implementation, an international company will be contracted within the framework of the project to manage capital expenditures and support the Iraqi General Railways Company in its efforts to build institutional capacity to manage large capital expenditure programs and manage the implementation of project contract packages.”
The bank emphasized that “the project will also prioritize active participation by citizens and local communities, and establish a community-led planning and monitoring mechanism that enables citizens to receive regular updates on work progress and provide their views and feedback on implementation. By 2037, the renovated railway line is expected to transport 6.3 million tons of domestic freight, 1.1 million tons of exports/imports, and 2.85 million passengers, including unpackaged primary commodities (such as grains or construction materials) and containerized goods (such as industrial and consumer goods).”
He explained that “the railway line will pass through eight Iraqi governorates, enhancing integration across the Republic of Iraq and benefiting nearly 17 million people. The shift in freight traffic from trucks to trains will significantly reduce damage to roads and lower annual maintenance costs.” He pointed out that “the project will provide more than 3,000 full-time jobs in the construction sector over seven years. Once railway operations and expansion work begin across the sector, the project is expected to provide 21,900 job opportunities annually.”
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