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Established in 2006 as a Community of Reality

Welcome to the Neno's Place!

Neno's Place Established in 2006 as a Community of Reality


Neno

I can be reached by phone or text 8am-7pm cst 972-768-9772 or, once joining the board I can be reached by a (PM) Private Message.

Established in 2006 as a Community of Reality

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    Turkish Minister of Transport: The development road will cost $20 billion

    Rocky
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    Turkish Minister of Transport: The development road will cost $20 billion Empty Turkish Minister of Transport: The development road will cost $20 billion

    Post by Rocky Thu 09 May 2024, 5:13 am

    Turkish Minister of Transport: The development road will cost $20 billion

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    The opening step in an agreement that will directly impact global maritime trade and the economy in the Middle East took place in Baghdad on April 22, as the transport ministers of Turkey, Iraq, Qatar and the UAE signed the “Development Road Memorandum of Agreement,” which is considered the first stage in this huge project. .
    The agreement promises huge investments by combining highways and railways from Basra to the Turkish border. This will allow ships coming from China and other Asian countries to deliver their goods to Europe with ease.
    This interview with Turkish Minister of Transport Abdulkadir Oraloglu discusses the details of the project, its impact on the region, the start date of work, and the date of its completion.
    What is the financial size of the “Development Road” project? And what does it cost?
    First, let's do a brief evaluation of the project. Through the "Development Road" project that we are implementing, based on Turkey's strategic location and growing global trade, we will provide land and rail transportation from the Al-Faw port being built in Iraq to London, which will provide uninterrupted transportation to all European countries. Through the "Development Road" project, which we regard as the New Silk Road, we will further strengthen the economic and geopolitical situation of our country. By implementing this project, we will significantly reduce the travel time between Asia and Europe via Türkiye.
    Starting from Al-Faw Port, the project will shorten time by approximately 15 days compared to ships traveling to Europe via the Suez Canal, by linking Al-Faw Port to the Turkish border via a 1,200-kilometre railway and highway, and the project will open a new door for regional trade.
    The Development Route project not only provides a transportation corridor at an affordable cost and in a short period of time, but also complements the existing transportation corridors as it connects the East-West corridors with the North-South direction, directly contributing to the global trade system and contributing to the development and growth of all participating countries.
    By implementing the Development Road Project, we will significantly reduce the travel time between Asia and Europe via Türkiye
    The length of the railway from our country to Europe via this corridor is 2,088 km. Construction work continues on part of the 130-kilometre-long corridor, while the remaining part will be put out to tender.
    As for the land road, it will be 1,912 km long, in addition to a new 320 km long highway between Sanliurfa and Ovaköy.
    Regarding the financial aspect, at the moment, if I give a certain number, I may be inaccurate. However, we expect a cost of between $8 billion and $15 billion in the early stages, and may reach $20 billion. But of course, the exact numbers will emerge as the project progresses. Regarding financing, we agreed in principle to obtain loans mainly from international financing companies.
    What are the expected benefits for Turkey, Iraq, Qatar, the UAE, and the countries of the region in general?
    It is known that in the 21st century, especially in China, industries and production of raw materials in Southeast Asian countries have increased simultaneously with the increase in the volume of trade with Europe. For this reason, the trade corridors between Asia and Europe are once again among the most important trade corridors in the world.
    In this context, there are 3 main trade routes: northern, central and southern.
    The northern route begins in East Asia and passes through Russia to reach Europe.
    The southern one passes through the Suez Canal and reaches Europe via the Mediterranean Sea.
    The central one, whose focal point is Turkey, starts from Southeast Asia and goes beyond the Caspian Sea to reach Europe via our country.
    In addition, Turkey occupies a vital position on the central and southern tracks, and is precisely located in the middle of the northern and southern tracks that extend from the Caucasian countries and Russia to Africa. Thanks to the flight time of about 4 hours, 67 countries with a population of about 1.4 billion people and a trade value of about 8.6 trillion dollars can be reached from our country. In short, our country's importance in international transport and trade is demonstrated by its geographical location and all its advantages.
    In addition to geographical advantages, our country's policy always focuses on mutual benefit. We can see clear examples of this in Africa, in the countries of the Turkish Republics, and in the Middle East.
    The Prime Minister, Mr. Muhammad Shiaa Al-Sudani, and the Turkish President, Mr. Recep Tayyip Erdogan, sponsored in Baghdad today, Monday, the signing ceremony of a four-way memorandum of understanding between Iraq, Turkey, Qatar, and the Emirates, aimed at joint cooperation on the strategic “development road project,” in the presence of members of the Turkish and Iraqi delegations. Ministers and advisors. Website of the Iraqi Prime Minister
    This project has invaluable value for us, and it is valuable for other countries that participated in its signing. There is a significant increase in the volume of trade globally, and thus an increase in transportation as well. In any case, new routes and additional capacity will be needed, and of course more attractive options will become more suitable.
    We expect a cost ranging between $8 billion and $15 billion in the early stages, and may reach $20 billion
    Regarding the benefits to other countries, the Development Road Project will be an international transportation corridor, but it is not just a transportation, energy or communications project, it is also a development project par excellence, as its name suggests.
    To give you a clear example: we opened the Istanbul-Izmir Highway, and we say that we reduced the travel time from 8.5 hours to 3.5 hours. If we had not opened the road, the increased number of cars and traffic would have made this trip take 11.5-12 hours a day.
    We have overcome this increase in travel time thanks to the new highway. But was this increase in flight the goal? of course not. The highway was built on the path of 12 industrial zones, making it a logistics and production center.
    This applies exactly to the path of development. Besides the importance of transportation, all countries along the path will have enormous production potential, labor force and industry, and thus will develop faster. This will contribute directly to our employment rates, as well as production.
    How will this project, implemented as an alternative, impact global maritime trade lanes?
    In the context of the transformation that began in global supply chains with the “Covid-19” pandemic and the acceleration of the process of change in the logistics map of the region in which we live after the Russian-Ukrainian war that began in 2022, and the security crisis in the Red Sea region increased due to the war between Israel and Palestine since October/ October 2023 Due to the difficulty of commercial ships passing through the Suez Canal. This route became unpopular with international shipping companies, and they began heading instead to the Cape of Good Hope.
    The ships depart from China, pass through the Cape of Good Hope, and arrive in London in about 45 days instead of 35 days. This means an increase of approximately 30% in costs, which is a significant and significant time difference.
    In addition, insurance costs for ships using this route have increased significantly. Therefore, if we had completed the development road project today, the time period of 45 days would be reduced to 25 days, which would also reduce costs.
    Security is the most important aspect of the project. There are security risks in Iraq. How will these risks be overcome?
    Following my visits to Iraq, I noticed that it is determined to become a stable country. Strong steps are being taken towards confirming that he exists and decides. Cooperation with Türkiye to eliminate terrorism on its territory is of great value.
    During our last visit, this was already one of the agenda items, as they aspire to become a safe country and aim to develop their country and people with their own resources. Of course, these security problems will continue in a certain way, but they will certainly diminish.
    Frankly, our expectations are that the projects we have implemented will also contribute to the security process. Despite the delicate balance that the current Prime Minister of Iraq maintains due to the current changes, we believe that he can take clear initiatives. They have also clearly demonstrated their will on the path of development. Therefore, I believe that security risks related to the path of development can be overcome.
    Through this project, does Iran support Iraq's efforts to become a fully independent state?
    As I mentioned earlier, we in Türkiye build our relations with our neighbors on the basis of mutual profit. Of course, we can negotiate with countries that wish to join. So far, I have not felt any real obstacles from Iran regarding the project.
    The United States had previously announced its support for the India Corridor project, which passes through Israel. Will you provide support for this project?
    The most important outcome of the G20 summit held in India was the announcement of a plan to create a railway and port network linking India to the Middle East and the Middle East to Europe, called the IMEC Corridor.
    It is a corridor that starts from India and passes through the Arabian Peninsula and passes through 4 countries. But it is not an actual project, but rather a response. As His Excellency the President pointed out, there can be no corridor without Türkiye. For us, IMEC does not have a strong base. Of course, competition between countries will certainly affect us.
    With the implementation of the project, significant commercial interactions will occur in a wide area from the Gulf of Basra to the Turkish border. What do you expect about the political and social impacts in the region?
    One of the main drivers for the emergence of the “Development Road” project was the construction of Al-Faw Port, and it was an influential factor in accelerating the pace of work on the project. But what is most important to us is Iraq’s view of Türkiye in this regard and their view of this project.
    During our recent visit to Iraq, which we made accompanied by His Excellency the President, the Prime Minister, Mr. Muhammad Shiaa Al-Sudani, was eagerly waiting for the work to begin, saying, “If you bring the equipment, let us begin.” There was great enthusiasm, of course due to the political and social implications that this project would have for their countries. Of course, this project will have major impacts on Iraq's stability and economic and social development.
    As His Excellency the President always says, “The road leads to production.” The farmer sells his crops, the tourist travels, the industrialist exports, and the carrier transports materials. Thanks to the road, investment comes, industry develops, the country grows, the economy flourishes, and jobs are secured. Everyone takes his profit through legitimate means. So, the road is the pillar of the economy, production and industry, just like energy, technology and innovation.
    Moreover, the “Development Road” project will generate an economic boost and provide significant job opportunities during the construction phase. As you know, construction is one of the driving force sectors of the economy in the development process, feeding up to 150 side sectors such as cement, ceramics, furniture, glass and logistics. Therefore, the construction sector represents undeniable strategic importance for the economies of the partner countries with this project. As I mentioned previously, we are talking about a cost of up to $8 billion in the first phase, and perhaps exceeding $15 billion or $20 billion.
    There is another point that makes us a little proud of our status as Turkey. The experience of Turkish construction contractors that they gained over the past 22 years in implementing many large projects within the framework of public-private partnerships, as well as implementing many huge projects for which they were responsible, contributed to accelerating the implementation of new projects in our country with greater success and in less time. Today, Turkish contracting companies that built projects inside and outside the country have raised it to a level where Turkish engineering leads the world. Today, we see roads, airports and metro lines built by Turkish contractors in many countries from Europe to Africa and from the Turkish Republics to the Arabian Peninsula.
    Within the framework of the "Development Road" project, there is no one who can complete this work more quickly than us. This is clear. Moreover, it is important that we participate in the project more, and be major parties in it, and this will certainly help Turkish companies to implement these projects. But of course, local companies that can carry out this work according to their capabilities will participate, including Iraq in the first place and then the rest of the partner countries.
    Is there a timetable for project implementation? When are full texts expected? When does work start? When will it be implemented?
    As you know, on April 22, we signed the “Minutes of Development Road Project Agreement” with the Ministers of Transport of Iraq, Qatar and the UAE, headed by His Excellency the President.
    If we talk about our specific situation, the projects are in the completion stages. In the previous months, we met with our Iraqi counterpart, Mr. Reda Muhaibis Al-Sadafi, in Ankara and made very important decisions. We agreed to open mutual offices in the two countries. There will be an office for Turkey in Baghdad and an office for Iraq in Türkiye, both of which will handle work related to the development path only.
    Our Iraqi partners decided to talk to contracting companies with experience and success in the field of railways, roads and ports.
    We also agreed to advance our consulting phase by establishing a joint company. It was discussed at the last meeting we attended, but we have a busy agenda. We also generally agreed on a certain structure for obtaining loans from international financial institutions for project financing, as I mentioned earlier.
    I cannot specify a specific start date for the project, but we will start as soon as possible. Our goal is to complete the development road project by 2030 and make services available there.
    It is also important to mention the Zengezur Corridor Project.
    I can't give a specific start date for the project, but we will start as soon as possible. Our goal is to complete the development road project by 2030 and make services available there.
    We believe that its opening, as well as the BTK line in the Middle Corridor, are of vital importance for strengthening our country's position in the Middle Corridor. In addition to the Baku-Tbilisi-Kars railway line, the Zangzur corridor will further support the development of the central corridor. With its implementation, the distance between Azerbaijan and Turkey will shrink. In the long term, goods heading from the Caspian Sea to the port of Baku will arrive via this corridor directly to Turkey, and it is expected to be shorter than the BTK line.
    Thus, we will provide an alternative to Georgia, which relies on the ports of Poti and Batum to transport goods to Europe via the BTK line. After the completion of the Kars-Igder-Delugu railway line project in our country, it will become possible to transport goods entirely via railway on the Baku-Turkey-Europe line. In addition, the Zangzur corridor will be a third alternative after the Baku-Tbilisi-Kars railway project and roads passing through Iran.
    In addition to increasing the tonnage to be transported annually, this will also have a positive economic impact on Armenia. Transforming the region into a commercial and energy hub will contribute to the stability and prosperity of neighboring countries. For these reasons, we believe that Armenia will support the project.
    I want to emphasize once again that the supply chains of the future will be based on resilience and environmental responsibility. Turkey is ready to lead this transformation through cooperation with its international partners. Together, we can shape the future of global trade and build a more prosperous, sustainable and inclusive world.
    We will remain committed to building an integrated international transportation network not only within Türkiye but also on the international stage.


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