KfW IPEX-Bank
The Role of European Export Credit Agencies in Financing Rail Infrastructure Development in Türkiye
This article first appeared in the Railway-News Magazine Issue 3 2023.
Rail is set to play a significant role in Türkiye’s transition to a low-carbon future, as it works towards reducing greenhouse gas emissions by 41% through 2030 and becoming net zero by 2053.
Compared with other modes of transport, such as road and air, rail is one of the most environmentally sustainable, which is why the Turkish government has made the development of the country’s rail sector a priority.
Plans include increasing the share of railways in transportation to 6.2% by 2053, up from just one percent today, which will reduce the environmental impact of transportation in Türkiye, improve safety, increase capacity and reduce travel times.
A particular area of focus is high-speed rail (HSR). Electrically powered, it’s possible for HSR networks to run entirely on renewable energy sources, such as solar and wind power, which will dramatically help Türkiye to reduce its CO2 emissions.
Developing Türkiye’s High-Speed Rail Infrastructure
Türkiye currently has approximately 8,000 miles of railway network, 770 of which make up the country’s existing HSR network. The first HSR line began operating in 2009, and the government plans to have almost 3,500 miles of HSR line operational by 2025.
This is no small task however, particularly because of Türkiye’s topography, which requires the building of expensive tunnels and viaducts in order to provide the long, straight and smooth paths high-speed trains need to operate.
Capital is also a challenge for the country, which like many others, faces economic difficulties post-pandemic. Furthermore, Türkiye must still rebuild after February’s 7.8-magnitude earthquake near the Türkiye-Syria border, which means large infrastructure investments like railway building might not be considered as important as the reconstruction of houses and ensuring communities have access to electricity and clean water.
Large-scale infrastructure investments also need support from the international market, which can take time to arrange, and require certain environmental and social prerequisites. Such roadblocks have slowed progression down, but mindsets are again refocusing on the development of Türkiye’s high-speed rail infrastructure and the benefits it will bring.
