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By John Lee.

Iraq has launched the second phase of a project to develop commercial exchange yards at its land border crossings with neighbouring countries. According to the Ministry of Transport, the initiative is part of government efforts to increase non-oil revenues and strengthen governance and automation at border facilities.

Murtada al-Shahmani, Director General of the General Company for Land Transport, said the company has completed development work at the commercial exchange yards at Arar and Shalamcheh, with work now under way at Zurbatiya, Al-Sheeb, Al-Munthiriya, and Rabia'a crossings. The goal is to bring all border trade yards to a unified standard.

Al-Shahmani added that the company has established an integrated automation system linking the commercial exchange yards electronically to the company's headquarters in Baghdad, enabling real-time monitoring of operations at border crossings. The system includes live camera feeds allowing head office staff to oversee workflow and the performance of government employees at border offices, as well as automating financial and electronic procedures.

(Source: Ministry of Transport)

By Nadim Kawach, for Arabian Gulf Business Insight (AGBI). Any opinions expressed here are those of the author(s) and do not necessarily reflect the views of Iraq Business News.

Iraq to Start Work on First Rail Link to Iran

Iraq is preparing to start work on its first direct railway link with Iran after completing key design work on the long-delayed project.

The project to construct the 32km rail line from the southern Iraqi oil hub of Basra to the Iranian border town of Shalamcheh was awarded to Spain's Imathia Group in 2024 but was held up by domestic upheavals in Iran and Iraq and the presence of hundreds of mines dating back to the 1980-1988 conflict between the two countries.

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By John Lee.

The Minister of Transport, Wahab Al-Hussni, received the Spanish Ambassador, Alicia Rico, in Baghdad in what was described as her first official meeting with an Iraqi minister in the current government, following her earlier meeting with the Prime Minister Ali al-Zaidi.

The discussions focused on the Basra-Shalamcheh railway project, which has been awarded to Spain's Imathia Group, and which is currently facing a number of operational constraints identified during a recent field visit by the Minister to Basra.

According to the Ministry of Transport, Al-Hussni instructed coordination with the Governor of Basra to address outstanding issues, including the removal of encroachments on land designated for the project.

He also directed relevant departmental units within the Ministry to introduce additional facilitation measures related to contractual implementation, aimed at accelerating project delivery timelines.

The Minister said the project represents the first railway initiative in Iraq involving a Spanish contractor in this sector, describing it as a pilot experience that could expand bilateral cooperation in future infrastructure schemes.

Ambassador Alicia Rico expressed satisfaction with the meeting and welcomed the minister's direct instructions to remove administrative and logistical obstacles, describing them as a positive signal for successful project implementation.

She added that the Spanish contractor will demonstrate strong commitment to delivering the project to a high standard, forming the basis for broader future cooperation between the two countries.

(Source: Ministry of Transport)

By John Lee.

The Iraqi Ministry of Transport has announced increased interest from international companies in investing in Iraq's strategic transport initiatives.

Aided by improved investment conditions and government policies, 2025 is expected to see exceptional foreign direct investment activity, according to the Ministry.

Key opportunities include the Grand Faw Port project, with 11 shortlisted companies vying for operational contracts, and major upgrades to Baghdad International Airport. Plans for a Karbala-Najaf monorail and various airport projects are also underway.

Notable projects include:

• Mosul International Airport: Executed by Turkey's TAV - 77 Insaat JV, a joint venture between Turkish contractors TAV Construction, and 77 Construction (77 Insaat).
• Nasiriyah International Airport: Built by a Turkish company. A consulting contract was also signed with the Turkish company Kiklop Design Hertz Insaat for designs and consulting, and an annex to the contract for construction with the China State Construction Engineering Corporation (CSCEC).
• Al Faw Grand Port: South Korea's Daewoo is leading the project with support from Italian, Dutch, and Turkish consultants.
• Development Road Project: Managed by US-based Oliver Wyman (financial consultancy) and BTP (Italian engineering consultancy).
• Basra-Shalamcheh rail line: Built by Spain's Imathia.
• Sawa-Hijama rail line: Built by Iran's "Boland Payeh" / "Balandbayeh".

The Ministry seeks to transform Iraq into a global economic hub by connecting the Middle East and Europe through infrastructure linking the Grand Faw Port to Turkey, leveraging Iraq's natural resources and strategic position.

(Source: Ministry of Transport)

By John Lee.

Minister of Transport, Razzaq Muhibis Al-Saadawi, announced a detailed strategy to revitalize Iraq's railway network, emphasizing the ministry's commitment to restoring and upgrading its infrastructure.

Key Developments in Iraq's Railway Network:

1. Reopened Lines After Long-Term Closures:
   • Baghdad-Fallujah Line: Reopened after a 5-year suspension.
   • Silo Al-Sharqat Line (Mosul): Reopened after 30 years of inactivity.
   • Baghdad-Samarra Line: Rehabilitated with a total length of 120 km.
   • Sawa-Hujama Line: Achieved 100% completion and will be inaugurated soon.
2. Reviving and Expanding the Network:
   • The ministry has initiated efforts to restore 12 railway lines.
   • Upgrades are underway for stations, workshops, and overall infrastructure, supported by a comprehensive modernization plan for the railway sector.
3. Key Projects Underway:
   • Basra-Shalamcheh Line:
     • Designed for passenger transport between Iraq and Iran.
     • Aims to provide a safe, efficient travel option, particularly during large-scale religious pilgrimages.
     • Expected to boost religious tourism, student exchange, and medical travel, reducing travel time and costs.
   • Ongoing efforts to resolve land-use conflicts along the route.
   • Project awarded to Imathia, a Spanish company, following the tender process, with a contract signed with the Iraqi General Railways Company.

The Ministry of Transport's strategy focuses on creating a modern, interconnected railway network that enhances economic activities, facilitates safe and affordable travel, and supports tourism and trade. Projects like Basra-Shalamcheh underscore the ministry's dedication to strengthening regional ties and providing efficient transportation solutions.

The minister reiterated the government's full support for these initiatives, emphasizing their role in modernizing Iraq's transportation infrastructure and meeting the needs of its citizens.

(Source: Ministry of Transport)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani met on Friday with a delegation from Consultrans, a Madrid-based company specialising in railway projects; Consultrans is part of the Imathia Group.

The Prime Minister emphasized the importance of Spanish companies investing in Iraq, highlighting the confidence Iraqi authorities have in Spanish firms, as reflected in the two previous contracts signed with Imathia.

During the meeting, discussions focused on the company's proposal to extend the planned Najaf-Karbala railway line to Baghdad, in addition to ongoing projects under their contracts, including the Basra-Shalamcheh railway line and a memorandum of understanding for the Mehran-Kut-Karbala railway line.

(Source: Media Office of the Prime Minister)

By John Lee.

The Iraqi Cabinet has approved the minutes of the technical committee of the Iraqi Railways Company tasked with negotiating with the Spanish company Imathia for the construction of the Basra-Shalamcheh railway line.

A statement from the Prime Minister's Office said, "the contract will be finalized, considering the Legal Department's remarks, and the negotiation period was extended by 60 days."

Madrid-based Consultrans, a division of Imathia specialising in "engineering, architectural, strategic consultancy and information and technology projects for the transport sector", was among a group of Spanish companies that met with Prime Minister al-Sudani last December.

(Source: PMO)

By John Lee.

Iraqi Prime Minister Mohammed Shia Al-Sudani laid the foundation stone for the new rail link between Basra and the Iranian city of Shalamcheh (Shalamjah) on Saturday.

This project aims to facilitate the movement of pilgrims and passengers between Iraq and Iran. The ceremony was attended by Iran's First Vice President, Mohammad Mokhber.

During his address at the event, Prime Minister Al-Sudani expressed his gratitude to Iran's Vice President and the accompanying delegation. He praised the exceptional efforts made by various government officials, including the Minister of Transportation and the Governor of Basra, as well as advisors, committees, and ministries, in advancing this significant project.

Highlighting the importance of the railway project, Al-Sudani emphasized its role in transporting pilgrims and visitors to holy shrines from Iran and Central Asian countries. He also noted its significance in enhancing Iraq's infrastructure and economic growth. He mentioned that discussions and agreements regarding the project had been ongoing for years, with completion plans solidified between Iraq and Iran in 2021.

Al-Sudani further explained that the railway connection through the Shalamjah border crossing is part of a broader network intended to transport pilgrims and visitors to the holy shrines, eventually reaching the provinces of Najaf and Karbala.

In response, Mohammad Mokhber conveyed greetings from Iran's President, Ibrahim Raisi, to Prime Minister Al-Sudani. He commended Iraq's development plans across various sectors and affirmed Iran's support for Iraq's economic and developmental success.

(Source: Media Office of the Prime Minister)

From Amwaj Media. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Deep Dive: Will Iran-Iraq rail ambitions turn into reality?

After repeated delays, Iran and Iraq in April agreed to relaunch efforts to connect the Iranian border town of Shalamcheh with the southern Iraqi city of Basra via a new stretch of railway.

The project is part of both countries' use of rail to expand infrastructure and secure their regional positions.

However, construction has been held up by technical challenges.

On the other hand, progress has been held up as alternative competing routes have emerged.

The full article can be viewed here (registration required).

By John Lee.

Iraq's Council of Ministers has approved measures to expedite the construction of the new railway connection between Basra and the Iranian city of Shalamcheh.

The approved actions include facilitating the transfer of land ownership to the Ministry of Transportation, ensuring necessary facilities are provided.

Additionally, the General Company for Iraqi Railways, under the Ministry of Transportation, has been authorized to hand over designated land sites, including minefields and the location of the bridge on the Shatt al-Arab, to the Iranian railways, initiating the process of mine clearance.

Furthermore, the Basra Governorate has been assigned the responsibility of removing obstacles along the railway track, "addressing any transgressions or conflicts that impede the smooth progress of the project."

(Source: Media Office of the Prime Minister)