The Development Road project would enhance commercial relations between Türkiye and Iraq, and the trade volume with neighboring countries would also increase, the head of a logistics association said Tuesday, highlighting that its implementation would eventually result in a possible reduction of logistics costs.
"Significant developments are taking place in the Development Road project, which will connect the Gulf of Basra to Europe through Türkiye," International Transportation and Logistics Service Providers Association (UTIKAD) President Bilgehan Engin told Anadolu Agency (AA).
"President Recep Tayyip Erdoğan's official visit to Iraq after a 13-year hiatus is an important step for the Development Road. During this visit, a Joint Cooperation Agreement (JCA) on the Development Road project was signed between Türkiye, Iraq, Qatar and the United Arab Emirates (UAE)," he added, referring to the signing of the preliminary four-way deal on cooperation in the project, inked a day earlier.
Iraq and Türkiye signed more than 20 memorandums during Erdoğan's one-day visit to Baghdad on Monday on everything from cultural and agricultural cooperation to education and health.
Launched last year, the 1,200-kilometer (745-mile) Development Road project encompasses railway and highway lines extending from the Grand Faw port in Basra through the cities of Diwaniyah, Najaf, Karbala, Baghdad and Mosul to the Turkish border. The project aims to provide road access from the Turkish border to the Port of Mersin and onward to Europe via Istanbul.
Engin pointed out that the aforementioned visit by Erdoğan was also crucial in terms of outlining the road map for the Development Road.
He highlighted that the project, which impacts a vast region from Europe to the Gulf countries and generates mutual benefits, is an important opportunity for the convergence of history, culture, common gains and economic hinterland, describing it as the "new Silk Road."
Moreover, he evaluated the direct impact of recent geopolitical events on the logistics sector and said, "The Russia-Ukraine war, following the pandemic, Israel's attacks on Gaza, the closure of the Suez Canal and the ongoing developments in the Middle East prompt those in the sector to seek new solutions."
"Considering the crises occurring worldwide, the Development Road project can be described as a lifeline for the logistics sector," he added.
"Establishing an alternative route with the project will contribute to solving economic issues in the sector."
"The Development Road project will enhance commercial relations between Türkiye and Iraq and increase trade volume with neighboring countries," Engin explained.
"When the project is implemented, transit transportation revenues will also increase. Trade between the East and the West will significantly improve, and transit times will also shorten. Thus, the project will reduce logistical expenses," he noted.
Through the project, Iraq and Türkiye aim to reduce travel time between Asia and Europe and become transit hubs. Expecting to surpass the 67-berth Jebel Ali Port in Dubai, known as the largest container port in the Middle East, the Grand Faw Port, with its capacity of 90 berths, is planned to be completed by 2025.
The project is seen as an alternative option in possible regional conflicts or wars since China's Silk Road does not pass directly through Iraq.
Upon the completion of the project, it is estimated that shipments that currently take approximately 45 days from the Cape of Good Hope and around 35 days from the Red Sea could be completed in just 25 days.
Engin added that the Development Road project would be the beginning of an essential step for regional development and strengthening commercial, social and cultural ties, and it is anticipated to bring about new collaborations in the process.
