WASHINGTON, December 5, 2024¡ªÄ¾¹ÏÓ°Ôº Board today approved $660 million in financing to support T¨¹rkiye¡¯s efforts to expand electric rail transportation that will help improve the efficient movement of goods across the country, boost exports, create jobs and reduce greenhouse gas (GHG) emissions.
The Eastern T¨¹rkiye Middle Corridor Railway Development Project will help expand and modernize one of the oldest and outdated sections of T¨¹rkiye¡¯s existing limited rail network. It will replace diesel-powered trains and expand connectivity between Divri?i, in Sivas province, and Kars (near the border with Georgia) in the country¡¯s northeast via a 660-kilometer, fully electrified and modern railway line. It will span four provinces and provide a significant boost to the well-being of nearly 600,000 people living along the train route as well as local firms and farms.
The Divri?i-Kars-Georgia border section is also a key element of the Trans-Caspian International Transport Route linking China, Central Asia, the South Caucasus, T¨¹rkiye, and the European Union through rail and sea. Once completed, the project will increase rail freight capacity from about 750,000 tons to 20 million tons per year, eliminating a major bottleneck in the Trans-Caspian Middle Corridor.
¡°By modernizing and expanding rail connectivity, T¨¹rkiye 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 T¨¹rkiye.
T¨¹rkiye currently relies heavily on its road freight transport system as a facilitator of economic growth, with about 95% of goods transported by road. This project will reduce travel times and logistics costs and improve connectivity between western and eastern T¨¹rkiye.
Freight transport by road is also responsible for as much as 50% of GHG emissions from the transport sector. Decarbonizing freight transport is, thus, crucial for decarbonizing T¨¹rkiye¡¯s economy and reducing emissions of Turkish industry, particularly its exporters if they are to remain competitive in global trade. Reducing the carbon footprint of Turkish exporters is particularly vital as the European Union (EU) begins imposing tariffs on carbon-intensive products from 2026. The EU market accounts for 40% of Turkish exports. It is estimated that in 2030, when the project is fully implemented, it will result in the avoidance of 72,332 tons of carbon, with the annual volume of avoided emissions growing to 245,835 tons by 2060.
The enhanced connectivity, for passengers and freight, is expected to bring considerable socio-economic benefits in the four host provinces ¨C Sivas, Erzincan, Erzurum, and Kars ¨C which lag national averages on economic well-being, including GDP per capita. The provinces are also highly exposed to extreme weather events, underscoring the need for resilient infrastructure that can withstand the impact of floods, landslides and wildfires.
¡°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.
ľ¹ÏÓ°Ôº is working with other development partners to support expansion of the Middle Corridor in T¨¹rkiye. Additional financing for the Eastern T¨¹rkiye 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 T¨¹rkiye.
