Development Road Project: Türkiye’s pivot for regional economic integration

In late May, an infrastructural project worth £13.54 billion ($17 billion) was launched by Iraq, which mainly aims to strengthen regional cooperation.

Announced by Iraqi Prime Minister Mohammed Shia al Sudani at a one-day conference in Baghdad, attended by officials from the Gulf Cooperation Council (GCC), Türkiye, Iran, Syria and Jordan, the project, called Development Road, is designed to connect Asia to Europe.

Starting from the Grand Faw Port on the Gulf in Iraq, it will end at the Mersin Port in Türkiye, where it also enters the European landmass. It will span 1,200 kilometres (745 miles) with railway, motorways, pipelines and road infrastructure. Offering an alternative to the heavily congested Suez Canal, it will provide a direct travel route from the Gulf to Türkiye.

The trade ministers from the two countries met in late August this year to discuss the bilateral economic and trade relations, including the Development Road project on the agenda.

Following the August 29 meeting with Turkish trade minister Omer Bolat and his large business delegation, Iraqi PM al Sudani said, "We are pleased with Türkiye's serious intent in the Development Road project, since Turkish companies have significant potential to realise the development of Iraq and an important role to play in our infrastructure projects."

As both countries emphasise the importance of extending cooperation, here’s why the Development Road can be an opportunity for the entire region.

Regional connectivity through Türkiye

Offering an alternative to the heavily congested Suez Canal, the project will provide a direct travel route from the Gulf to Türkiye, linking it to Basra, Baghdad and Mosul in Iraq. It will also ease the possible passage from Iraq to Türkiye, shortening the distance for the movement of goods and people.

After the first phase, planned to last five years, 3.5 million tonnes of goods are expected to be transported along this route. It is expected to increase to 7.5 million tonnes after the second phase of the three-phased construction. According to official sources from the Iraqi government, the construction works will start next year and continue until 2050.

Following the meeting with the Iraqi PM on March 21, President Erdogan expressed Türkiye’s determination to work together on the project. “We know that other brotherly countries take a close interest in this project that will strengthen regional cooperation, enhance our trade and consolidate our social relations,” he said at the joint press conference.

Bilateral trade volume between the two countries reached £19.24 billion ($24.2 billion) in 2022, and is expected to rise further, as both countries are willing to expand cooperation.

Gateway to Europe

After a long decade of conflict in Iraqi territories, many roads and rail networks are in poor condition, increasing trade costs and impeding its integration into the regional and global markets.

During al Sudani's Ankara visit on March 21, Turkish President Recep Tayyip Erdogan had said the project would help Iraq open up to Europe and the world.

When the project is realised, it will be the shortest route linking the Gulf to Europe. Other Gulf countries, as well as Jordan and Iran, will also be connected to Europe, thanks to the road project passing through Türkiye.

Türkiye as energy hub

Having rich oil and natural gas reserves, Iraq deals with problems in the transportation and marketing of its resources due to maritime border problems with Kuwait.

Umm Qasr Port, located in the city of Umm Qasr, is Iraq’s only deep water port. Crude and goods pass through this port, which is heavily congested and faces other problems, including the small width of the inlet leading to the port, which hinders access to the Gulf waters. The road project offers an attractive alternative.

Türkiye has already been playing a critical role in transportation of energy resources of the Caucasus and Russia to the energy-hungry European markets. Through the route, it will now become a transit to carry energy resources of the Gulf to Europe, connecting Iraq to international markets over land. Eventually, it will not only provide a low-cost route for Iraqi oil and natural gas, but to Iranian and Qatari oil and gas as well.

Türkiye already has oil and natural gas pipelines and transmission lines passing through the region. The Iraq-Türkiye crude oil pipeline, carrying oil produced in Iraq’s Kirkuk — which is locally administered by the Kurdish Regional Government — to Türkiye’s Ceyhan, and the Eastern Anatolian Natural Gas main transmission line, carrying Iranian natural gas to Türkiye, are two projects Türkiye initiated that have been completed.

However, the Iraqi one has not been operational since March 25, after the International Chamber of Commerce’s (ICC) rule of arbitration, considering the Iraqi federal government’s claim that the move is illegal. In the latest high-level meeting on August 29, the resumption of Iraqi Kurdish oil exports through Ceyhan port in Türkiye has also been on the agenda.

Through the new project, the Iraqi government envisions high-speed trains on the route, linking local industry hubs and energy pipelines that facilitate the energy trade.