World Bank: +$900M for Iraq railway

Shafaq News/ The World Bank has approved a $930 million loan to revamp Iraq’s outdated railway network.

The Iraq Railways Extension and Modernization (IREM) Project will upgrade more than 1,000 kilometers of track, linking Umm Qasr Port in the south to Mosul via Baghdad, the Bank stated, adding that the project, spanning eight provinces, is expected to reduce travel times, increase freight capacity, and strengthen national integration.

While years of neglect have left Iraq’s rail system largely obsolete, the World Bank noted that the funding will cover track rehabilitation, procurement of new trains, construction of maintenance depots, and development of logistics centers—critical steps to attract private investment and generate long-term jobs.

Safety and sustainability are key pillars of the initiative. Plans include a nationwide safety system, upgraded level crossings, and emergency response training. The project also aims to boost female participation in the railway workforce.

According to the Bank, the initiative will support structural reforms at Iraqi Republic Railways, help shape a national rail strategy, and promote public-private partnerships to enhance transparency and governance. Iraq’s Ministry of Transport will oversee the rollout, with international firms managing contracts and compliance.

By 2037, the upgraded network is projected to carry 6.3 million tons of domestic freight, 1.1 million tons of international cargo, and nearly 3 million passengers annually. Shifting freight from road to rail is expected to cut highway maintenance costs and benefit more than 17 million people.

The construction phase alone is expected to generate over 3,000 full-time jobs in the first seven years, with railway operations supporting up to 22,000 jobs annually by 2040.