The World Bank has approved a USD 930 million financing for Iraq Railways Extension and Modernisation (IREM) Project involving 1,047 km of railways linking Umm Qasr Port southern Iraq and Mosul in northern Iraq, through Baghdad. The project is expected to be completed in 2032.
The projects is also addressing the aging fleet of locomotives and rolling stock, refurbish the Baiji maintenance workshop, and procure necessary equipment and spare parts.
“As Iraq shifts from reconstruction to development, enhanced trade and connectivity can stimulate growth, create jobs, and reduce oil dependency. The IREM project is vital for transforming Iraq into a regional transport hub and helping achieve the IDR’s goals of improved connectivity and economic diversification and growth,” said Jean-Christophe Carret, World Bank Middle East Division Director.
The project activities will also promote private capital participation in the establishment of dry ports and logistics hubs with the generation of high-skill and sustainable jobs. The IREM project will enhance railway safety through a comprehensive safety management system, infrastructure upgrades, level crossing improvements, community awareness campaigns, emergency preparedness, and staff training.
The project will also include technical assistance to improve the institutional and corporate performance of the Iraqi Republic Railways (IRR), developing a Railway Sector Reform Action Plan, and identifying opportunities for private sector involvement. Furthermore, the project will provide training for the IRR staff and support women’s participation in the rail sector.
Iraq Railways Extension and Modernisation project will reduce travel time, increase freight volumes and provide users with improved access to sustainable transport infrastructure and services. It will also improve Iraq’s railway performance, boosting domestic trade, creating jobs, and diversifying the economy.
By 2037, the revived railway line between Umm Qasr Port and Mosul is expected to carry 6.3 million tonnes of domestic freight, 1.1 million tonnes of exports/imports, and 2.85 million passengers.
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