Türkiye launches railway upgrades to bypass Russia, boost Europe-Asia freight trade

Türkiye is undertaking a $60 billion railway modernization project, aimed at creating a new trade corridor between Asia and Europe while bypassing Russian territory.

The upgrades, which include electrification, high-speed rail, and critical infrastructure, have attracted interest from China, signaling Ankara’s ambitions to solidify its role as a major transit hub.

The railway expansion, spearheaded by Türkiye’s investment promotion office, Invest in Türkiye, seeks to enhance connectivity with Europe amidst disruptions caused by the ongoing conflict in Ukraine.

The modernization effort is expected to position Türkiye as a central player in the global supply chain, offering a faster and safer alternative for freight transport.

Major infrastructure investments

Key components of the railway project include a high-speed rail line between Istanbul and Ankara, new domestic routes, and a bridge in Istanbul to connect Asia and Europe more seamlessly. The initiative will also focus on modernizing existing lines and electrifying the network to improve efficiency and capacity.

China’s CRRC Zhuzhou Electric Locomotive, which already has a factory in Türkiye, has been instrumental in recent advancements, including introducing Istanbul’s fastest metro train. As the tender process for the upgrades begins, other contractors, including Chinese firms, are expected to participate.

Strategic geopolitical and economic implications

China views Türkiye’s railway modernization as a key opportunity to strengthen the China Railway Express system, part of its Belt and Road Initiative. By establishing a secure freight corridor across Türkiye, China can circumvent the war-affected routes near Russia and Ukraine, ensuring the uninterrupted flow of goods to Europe.

Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute, highlights that the nearly three-year Russia-Ukraine war has made direct routes unreliable, increasing the appeal of alternatives through Türkiye. This development aligns with Türkiye’s broader economic goals and China’s strategic interest in securing robust trade routes.

Transforming regional trade dynamics

Türkiye’s railway investments are expected to reshape the landscape of Europe-Asia trade. The enhanced network will reduce transit times, lower costs and ensure greater reliability, boosting Türkiye’s economic prospects while meeting the needs of European freight shippers seeking alternatives to Russian routes.

This massive infrastructure push underscores Ankara’s vision of becoming a global logistics hub, leveraging its geographic position at the crossroads of continents. With international partnerships and significant funding, Türkiye aims to redefine trade and logistics in a rapidly changing geopolitical environment.