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CASE STUDY Bridging regions and markets in the east of Türkiye (2025) A new electrified railway moves people and products
OPEC Fund financing: €150 million
Total project cost: €2.7 billion
Along Türkiye’s eastern border, limited rail infra structure has long been a barrier to development — restricting access, reducing competitiveness and raising the cost of logistics. Closing these gaps is key to ensuring inclusive and sustainable growth, especially among remote communities. Responding to this demand, the OPEC Fund provided a €150 million loan to support the Kars- Iğdır-Aralık-Dilucu High Standard Electrified Railway Project, working with the Government of Türkiye and a group of international co- financiers for a total project cost of €2.7 billion. The project is building a 224 km electrified double-track railway with modern signaling
enabling speeds of up to 160 km/h. Once com pleted, the line will carry 2 million tonnes of freight and 650,000 passengers annually, cutting costs and lowering greenhouse gas emissions by moving traffic from road to rail. Minister of Transport Abdulkadir Uraloğlu said: “We are not merely laying the foundation of a railway line, but also beginning the construction of a bridge connecting Türkiye, Azerbaijan and Armenia — a steel international link that will further strengthen the socio-economic ties between Asia and Europe.”
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