International Financing To Liberalize The Railway Sector
Economic 07/09/2025 Dr. Maytham Adham Al-Zubaidi In a remarkable move aimed at modernizing the transportation sector and boosting economic growth in Iraq, the World Bank has approved $930 million in financing for an ambitious project to expand and modernize Iraq's railway network.
This project falls within the "Development Road," which seeks to transform Iraq into a regional logistics hub linking the Gulf region to Europe via Turkey.
However, the importance of this project goes beyond simply improving infrastructure;
it represents a qualitative leap in
liberating the railway sector from monopoly,
enhancing competitiveness, and
opening the door to vital private sector participation.
The project encourages the establishment of dry ports and logistics centers in cooperation with the private sector, creating a new competitive environment and giving national and foreign companies the opportunity to enter the modern transportation system.
This transformation not only reduces costs, but also improves efficiency and creates competition in terms of quality and service.
Improving rail transport means
opening up markets to producers and consumers,
reducing shipping time and costs, and
enhancing competitiveness as a lever for economic development domestically and regionally.
Shifting a significant portion of road freight to rail will also
break the dominance of certain groups of companies that control the land transport sector,
creating a more equitable and competitive market balance.
The renewed railway line is expected to transport about (6.3) million tons of goods and more than (2.85) million passengers by 2037, which will enhance the connection between the governorates and drive economic activity across the country.
In addition, the project does not neglect the social aspect of job creation and sustainable development.
It is expected to provide more than 3,000 direct jobs during the construction phase,
in addition to approximately 22,000 job opportunities annually by 2040 in the field of operations and support services.
The project also includes specialized training programs for railway sector workers, with special attention paid to the participation of women.
The World Bank's railway modernization project in Iraq, if implemented properly and thoughtfully,
will not merely be a technical financing exercise,
but rather a genuine structural reform aimed at building a more open and diversified economy based on partnership, competition, and transparency.
As Iraq enters a new phase of development after years of challenges, this initiative represents a turning point in building a competitive, sustainable, and equitable infrastructure. https://alsabaah.iq/117161-.html
