The World Bank approves 660 million US dollars to expand Türkiye’s low-carbon railway network

Recently, the World Bank approved a US $660 million loan to support Türkiye X10CrMoVNb9-1 steel to expand its low-carbon railway network. The core content of the project is to replace the existing diesel locomotive with electric drive, and build a 660km long fully electrified railway to connect Divrigi and Kars in eastern Türkiye, and extend to the border with Georgia. This railway is not only important for Türkiye's domestic transportation, but also will connect with the trans Caspian international transport corridor, connecting the markets of China, Central Asia, the South Caucasus and the EU, which has important regional economic strategic significance.

After the completion of the project, Türkiye's railway freight capacity will be increased from the existing 750000 tons/year to 20 million tons/year, which will solve the transportation bottleneck of the current cross Caspian Sea intermediate corridor. At present, Türkiye's X10CrMoVNb9-1 steel transport system relies heavily on roads, and about 95% of goods are transported by roads, which also makes the transport sector's greenhouse gas emissions account for 50% of the country's total emissions. Therefore, improving the efficiency of railway transportation and promoting decarbonization have become the key to Türkiye's green economy transformation.

In addition, as the EU plans to impose tariffs on carbon intensive products from 2026, reducing carbon emissions is particularly important for Türkiye. At present, the EU market accounts for 40% of Türkiye's exports, and this change may have a profound impact on Türkiye's export competitiveness.

According to Mysteel, Türkiye released the "Green Agreement Action Plan" in 2021, which points out the way for green and resource efficient transformation. As an important measure, Türkiye plans to launch the carbon emission trading system in 2025 to further promote green development. Through the implementation of this railway project, Türkiye will not only improve its transport capacity and reduce carbon emissions, but also enhance its competitiveness in global green trade and promote regional economic integration. It is estimated that after the completion of the project, Türkiye X10CrMoVNb9-1 steel can reduce carbon emissions by about 72300 tons per year, and by 2060, the annual carbon emissions will be reduced to 245800 tons. With the advancement of the project, Türkiye is expected to become the pioneer of global low-carbon transportation and promote the further development of international logistics cooperation.