AIIB backs Istanbul rail crossing project with up to U.S. $1.5 billion in Türkiye

Traders Union
All News
Financial Institutions
AIIB backs Istanbul rail project

Highlights

AIIB and Türkiye signed the first phase of a financing package worth up to U.S. $1.5 billion for the $8.27 billion Istanbul North Rail Crossing Project.
The 127 km double-track corridor will connect Çayırova and Çatalca, reducing rail freight travel time from 13 hours to 3.6 hours and linking major airports.
AIIB’s investment targets climate mitigation, cutting 16 million tonnes of CO2e over the project’s lifetime, and is co-financed by multiple multilateral institutions.

Financing package and rail corridor scope

As announced by AIIB, the Asian Infrastructure Investment Bank and the Republic of Türkiye have signed the first phase of a financing package worth up to U.S. $1.5 billion for the Istanbul North Rail Crossing Project, known as INRAIL.

The funding supports construction of a new high-capacity rail corridor linking the European and Asian sides of Istanbul through the Yavuz Sultan Selim Bridge. The project is designed to expand cross-Istanbul rail capacity, improve freight and passenger transport efficiency and reinforce Türkiye’s role as a strategic transport gateway between Asia and Europe.

Once completed, the line is expected to provide about 127 kilometers of double-track, electrified and fully signalized railway connecting Çayırova on Istanbul’s Asian side with Çatalca on the European side. Passenger trains are expected to run at speeds of up to 160 kilometers per hour, while freight services are expected to operate at 80 to 120 kilometers per hour. The corridor is also set to link Istanbul Airport, Sabiha Gökçen Airport and Türkiye’s high-speed rail network.

Transport impact and multilateral backing

AIIB says the project complements the existing Marmaray corridor and allows freight and passenger operations to be separated, which is expected to strengthen the resilience and efficiency of Türkiye’s rail network. Rail freight travel time between Çayırova and Çatalca is projected to fall from about 13 hours to 3.6 hours, while public transport travel time between Istanbul Airport and Sabiha Gökçen Airport is expected to drop from around 120 minutes to 65 minutes.

The project is also projected to reduce greenhouse gas emissions by about 16 million tonnes of carbon dioxide equivalent over its operating period. AIIB says its financing primarily supports climate mitigation, with additional adaptation benefits tied to stronger infrastructure resilience and Türkiye’s transition to a lower-carbon transport system.

With a total project cost of about U.S. $8.27 billion, INRAIL ranks among AIIB’s largest transport investments in Türkiye. The bank is co-financing the project with the World Bank, the Asian Development Bank, the Islamic Development Bank, the European Bank for Reconstruction and Development, and the OPEC Fund for International Development.

In our earlier coverage of British Columbia’s funding for the Kootenays’ Advancing Critical Metal Tech Alley initiative, we explained how the province is supporting the buildout of a critical-metals hub focused on recycling, processing, technology development and commercialization. We also noted the program’s goal of attracting investment, creating jobs and strengthening rural economic resilience through value-added critical-metals production.

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.