In a major step toward revitalizing Iraq’s transport infrastructure, the World Bank has approved a US$930 million loan to fund the Iraq Railways Extension and Modernization (IREM) Project. The initiative aims to upgrade 1,047 kilometers of railways from the southern port of Umm Qasr to Mosul in the north, enhancing freight movement, passenger services, and economic integration across eight Iraqi governorates.
The project, part of Iraq’s broader Development Road (IDR) strategy, is designed to strengthen national and regional connectivity by linking Gulf ports to Europe via Iraq and Turkey. According to Jean-Christophe Carret, World Bank Middle East Director, the IREM Project will help reduce the country’s reliance on oil, stimulate job creation, and improve trade logistics. Enhancements will include modernizing infrastructure, expanding Iraq’s aging locomotive fleet, and refurbishing key logistics hubs such as the Baiji workshop.
Beyond infrastructure, the project promotes private sector involvement, institutional reforms, and community engagement. With full implementation, the railway system is projected to serve over 6 million tons of domestic freight and nearly 3 million passengers annually by 2037. It is also expected to create more than 3,000 construction jobs over the next seven years and up to 21,900 operational jobs annually by 2040, significantly contributing to Iraq’s economic diversification and development goals.
