World Bank Backs $2 Billion Mega Rail Project to Transform Istanbul into Global Logistics Superhub

At the core of the project is the construction of a 127-kilometre electrified, high-capacity railway line, designed to provide a new overland crossing of the Istanbul Strait.

In one of the largest transport infrastructure investments in Türkiye’s history, the World Bank has approved a $2 billion loan for the Istanbul North Rail Crossing Project (INRAIL)—a landmark initiative set to eliminate a critical bottleneck at the Bosphorus and dramatically expand rail connectivity between Europe and Asia.

The project anchors a broader $6.75 billion coordinated financing effort involving six major multilateral development banks, positioning INRAIL as a flagship example of global cooperation in infrastructure development.

A Strategic Rail Link Bridging Continents

At the core of the project is the construction of a 127-kilometre electrified, high-capacity railway line, designed to provide a new overland crossing of the Istanbul Strait.

The line will:

• Utilize the rail-ready Yavuz Sultan Selim Bridge

• Bypass congested urban areas of Istanbul

• Connect Istanbul’s two major airports to each other and the national rail network

• Integrate with key international freight corridors

“This is more than building a bridge—it is about bridging continents,” said Humberto Lopez, World Bank Country Director for Türkiye.

Unlocking a Major Trade Bottleneck

Currently, rail corridors passing through Istanbul—including the Trans-Caspian (Middle Corridor), Türkiye–EU corridor, and Iraq Development Road—face severe capacity constraints at the Bosphorus.

INRAIL is expected to:

• Increase rail freight capacity from 3 million tons to up to 50 million tons annually

• Deliver a more than 15-fold increase in throughput

• Improve travel time, reliability, and predictability for freight

This transformation is critical as global trade routes shift and demand grows for faster, more resilient logistics connections between Europe, Central Asia, and the Middle East.

Climate-Resilient, Future-Ready Infrastructure

Approximately half of the railway alignment will run through tunnels, reducing exposure to climate-related risks such as:

• Extreme heat

• Flooding

• Strong winds

• Wildfires

The project also supports Türkiye’s broader goal of shifting freight and passenger traffic from road to rail, helping to reduce emissions and improve transport sustainability.

Economic Impact: Jobs, Growth, and Investment

The project is expected to generate significant economic benefits, including:

• Up to 414,000 better-paying jobs

• Around 99,000 new jobs created

• Increased productivity across manufacturing, agriculture, and services sectors

INRAIL is also designed to stimulate private sector investment in logistics and transport services by improving infrastructure reliability and capacity.

Boosting Women’s Participation in Transport

In a notable inclusion effort, the project will introduce:

• Internship programmes for female university students

This aims to increase women’s participation in the traditionally male-dominated transport and infrastructure sectors.

A $8.3 Billion Global Financing Effort

With a total estimated cost of $8.3 billion, INRAIL is being delivered through an unprecedented multilateral financing collaboration.

Key partners include:

• World Bank (lead financier and coordinator)

• Asian Development Bank (ADB)

• Asian Infrastructure Investment Bank (AIIB)

• European Bank for Reconstruction and Development (EBRD)

• Islamic Development Bank (IsDB)

• OPEC Fund for International Development

Together, these institutions are expected to contribute $6.75 billion, complemented by funding from the Government of Türkiye.

The World Bank is also implementing a streamlined procurement approach, aimed at accelerating project delivery and reducing administrative complexity.

Strengthening Türkiye’s Role as a Global Logistics Hub

By removing one of the most critical chokepoints in Eurasian rail networks, INRAIL is set to:

• Enhance Türkiye’s position as a key transit hub

• Improve connectivity between Europe, Asia, and the Gulf region

• Strengthen regional trade integration and supply chain resilience

The project aligns with Türkiye’s long-term development strategy, which prioritises infrastructure investment, trade facilitation, and economic diversification.

The Istanbul North Rail Crossing Project represents a transformative leap for Türkiye’s transport infrastructure and its role in global trade. By combining large-scale investment, advanced engineering, and international collaboration, INRAIL is poised to redefine how goods and people move across continents—unlocking new economic opportunities for Türkiye and the wider region.