China’s $60 Billion Railway Investment in Turkey: A Game-Changer for Eurasian Trade
In a bold move to strengthen its global infrastructure footprint, China has expressed interest in modernizing Turkey’s railway network with a staggering investment of around US$60 billion. This ambitious project, revealed by Burak Daglioglu, president of Turkey’s governmental promotion office Invest in Turkey, could reshape Eurasian trade dynamics by offering European freight shippers an alternative route to bypass Russia amid the ongoing war in Ukraine.
The proposed upgrades, shared with Hong Kong-based SCMP, include the electrification of existing lines, the construction of new domestic routes, a bridge in Istanbul, and a high-speed rail line connecting Istanbul to Ankara. These developments are seen as a critical component of China’s Belt and Road Initiative (BRI), which aims to enhance connectivity between Europe and Asia.
Turkey, one of the earliest supporters of the BRI, formalized its collaboration with China in 2015 through a memorandum of understanding. The goal was to synchronize the BRI with Turkey’s Middle corridor Initiative, a strategic effort to position the country as a central hub for Eurasian trade.
China’s state-owned CRRC Zhuzhou Electric Locomotive, which already operates a factory in Turkey, is expected to play a important role in the upgrades. The company made headlines last year by introducing Istanbul’s fastest metro train. Daglioglu expressed confidence in China’s involvement,stating,“They are interested in the projects… Provided that they are offering a competitive bid on the tender,they are welcome to join. There is huge potential for railway investments.”
The project will also involve an open tender process, inviting other contractors to submit bids. This approach ensures openness and competition, perhaps attracting global players to contribute to Turkey’s rail modernization.
Beyond railways, China has shown growing interest in Turkey’s technology sector, especially in electric vehicles and energy projects. As of mid-2024, Chinese investments in Turkey totaled US$6 billion, spread across 1,300 companies.
Tourism is another area of collaboration between the two nations. In 2024, 300,000 Chinese tourists visited Turkey, a slight increase from the previous year but still below the pre-pandemic figure of 500,000 in 2019. Ankara is actively working to expand its tourism partnership with chinese provinces to attract more visitors. “we would like to grow our collaboration in the tourism and cultural activities fields as well,” Daglioglu added.
Turkey’s Vision: A Central Hub for Eurasian Trade
Table of Contents
Turkey is strategically positioning itself as a key rail hub for Eurasian trade, particularly as European shippers seek alternative routes to bypass Russia. The modernization of its railway network, supported by China’s investment, could significantly enhance Turkey’s role in global trade logistics.
| Key highlights | Details |
|—————————————-|—————————————————————————–|
| Total Investment | US$60 billion |
| Key Projects | Electrification of lines, new domestic routes, Istanbul bridge, high-speed rail |
| BRI Integration | Synchronized with Turkey’s Middle Corridor Initiative |
| Chinese investments in Turkey (2024) | US$6 billion across 1,300 companies |
| Chinese Tourists in Turkey (2024) | 300,000 |
This partnership underscores the deepening economic ties between Turkey and China, with the potential to transform Turkey into a pivotal player in global trade and infrastructure development. As the project progresses, it will be engaging to see how this collaboration shapes the future of Eurasian connectivity.
Russia’s Role in China-EU Rail Cargo Transit Amid Growing Demand for Alternatives
The China-Europe rail freight network remains a critical artery for global trade, but the ongoing war in Ukraine and geopolitical tensions have sparked a search for alternative routes. while over 90 percent of railway traffic between China and Europe still relies on the Northern Corridor, which passes through Russia and Belarus, challenges such as EU sanctions and Russian counter-sanctions have raised concerns about the reliability of this route.
Russia’s Role in Rail Cargo Transit
Despite these challenges, Russia has continued to facilitate rail cargo transit through its territory. Moscow has clarified that while some shipments from China destined for the EU faced additional checks, these instances were not frequent.Most shipments that underwent extra scrutiny have since been cleared for delivery beyond Russia’s customs borders.
Operators in Italy, for instance, raised concerns last year that containers traveling on the China-Europe rail route were halted in Russia for inspections to ensure they did not contain goods under the country’s embargo list. However, Russia has maintained that it imposes extra inspections only when deemed necessary, ensuring that most cargo moves smoothly.
According to reports, transit deliveries of rail cargo from China to the EU via Russia increased in 2024 compared to 2023. However, the capacity of Russian railways has proven insufficient to meet the growing demand for rail traffic between China and Europe.
The Rise of the Middle corridor
As Europe seeks to reduce its dependence on Russia, attention has shifted to the Middle Corridor, a shorter route that extends from China through Central Asia, the Caspian Sea, the southern Caucasus, and Turkey to Europe. Turkey,in particular,is positioning itself as a viable alternative through this corridor.
Jayant Menon, a senior fellow at the ISEAS-Yusof Ishak Institute, explained that a rail connection through Turkey could offer a quicker and more reliable route for the China Railway Express to reach Europe. Though, Menon also warned that turkey’s rail infrastructure remains a “weak link” in the broader network between China and Europe. Any disruption in this route could compromise the entire system.
Key challenges and Opportunities
| Aspect | Northern Corridor | Middle Corridor |
|————————–|——————————–|——————————-|
| Route | China → Russia → Belarus → EU | China → Central Asia → Turkey → EU |
| Dependence on Russia | High | Low |
| Infrastructure | Established but strained | Developing, with weak links |
| Geopolitical Risks | Sanctions and inspections | potential disruptions in Turkey |
While the Northern Corridor remains the dominant route, its reliance on Russia poses significant risks, especially amid ongoing geopolitical tensions. the Middle Corridor, though shorter, faces its own challenges, particularly in terms of infrastructure development.
The Future of China-Europe Rail Freight
As demand for rail freight between China and Europe continues to grow,the development of alternative routes like the Middle Corridor will be crucial. Turkey’s role in this corridor could be transformative,but significant investments in rail infrastructure will be necessary to ensure its reliability.
For now, russia remains a key player in the China-Europe rail freight network, but the search for alternatives underscores the need for diversification in global trade routes.
What’s next for the China-Europe rail freight network? As geopolitical dynamics evolve, the balance between the Northern and Middle Corridors will shape the future of this critical trade route. Stay tuned for updates on how these developments unfold.
China’s $60 Billion Railway Investment in Turkey: A Game-Changer for Eurasian Trade and geopolitics
In a strategic move to bolster its global infrastructure influence, China has announced plans to invest approximately $60 billion in modernizing Turkey’s railway network. this aspiring project, revealed by Burak Daglioglu, president of Turkey’s governmental promotion office Invest in Turkey, aims to reshape Eurasian trade dynamics by offering European freight shippers an alternative route to bypass Russia amid the ongoing war in Ukraine.
The proposed upgrades include electrifying existing lines, constructing new domestic routes, building a bridge in Istanbul, and developing a high-speed rail line connecting Istanbul to Ankara. These initiatives are a key part of China’s Belt and Road Initiative (BRI), which seeks to enhance connectivity between Europe and Asia. Turkey, an early supporter of the BRI, formalized its collaboration with China in 2015 through a memorandum of understanding, aligning the BRI with Turkey’s Middle Corridor Initiative to position the country as a central hub for Eurasian trade.
To explore the implications of this monumental investment, World Today News Senior Editor Clara Bennett sits down with dr. Emre Karahan, an expert on international trade and infrastructure development, to discuss the project’s potential impact on global trade, geopolitics, and regional economies.
Clara Bennett: Dr. Karahan, this $60 billion investment is staggering. How does this project fit into China’s broader global infrastructure strategy, particularly the Belt and Road Initiative?
Dr. Emre Karahan: This investment is a cornerstone of China’s BRI, which aims to create a vast network of trade routes connecting Asia, Europe, and Africa. By modernizing Turkey’s railway network, China is not only enhancing its infrastructure footprint but also strengthening its geopolitical influence in a region that serves as a critical bridge between East and West. Turkey’s geographic position makes it an ideal partner for China’s vision of seamless Eurasian connectivity.
Clara Bennett: turkey has been a vocal supporter of the BRI for nearly a decade. How does this railway project align with Turkey’s Middle Corridor initiative, and what benefits does Turkey stand to gain?
Dr. emre Karahan: The Middle Corridor Initiative is Turkey’s strategic effort to become a central hub for Eurasian trade, bypassing traditional routes that pass through Russia. This railway project dovetails perfectly with that vision. By upgrading its rail infrastructure, Turkey can attract more freight traffic from Europe and Asia, boosting its economy and solidifying its role as a key logistics hub. Additionally, the project will create jobs, stimulate local industries, and enhance Turkey’s overall competitiveness in global trade.
Clara Bennett: with the war in Ukraine prompting European shippers to seek alternative routes, how important is this project in the context of shifting trade dynamics?
Dr. Emre Karahan: It’s highly significant. The Northern Corridor, which passes through Russia and Belarus, has become increasingly unreliable due to geopolitical tensions and sanctions. The Middle Corridor, facilitated by Turkey, offers a viable alternative. By investing in Turkey’s railways, China is not only diversifying its trade routes but also providing European shippers with a more stable and efficient option. This could lead to a fundamental shift in how goods are transported between Europe and Asia.
Clara Bennett: China’s involvement in Turkey’s rail modernization will likely involve its state-owned CRRC Zhuzhou Electric Locomotive, which already operates in turkey. How vital is this collaboration for both countries?
Dr. Emre karahan: CRRC’s involvement is crucial. The company has already demonstrated its capabilities in Turkey, such as introducing Istanbul’s fastest metro train last year. This project will allow CRRC to further establish its presence in the region while transferring valuable technology and expertise to Turkey. For China, it’s an opportunity to showcase its engineering prowess and strengthen its economic ties with Turkey.
Clara Bennett: Beyond railways, China has shown growing interest in Turkey’s technology sector, electric vehicles, and energy projects. How do these investments complement the railway initiative?
Dr. Emre Karahan: These investments are part of a broader strategy to deepen economic ties between the two countries. The railway project serves as the backbone, enhancing connectivity and trade logistics, while investments in technology, EVs, and energy create additional avenues for collaboration. Together,they position Turkey as a multifaceted partner for China,fostering long-term economic growth and innovation.
Clara Bennett: what challenges might this project face, and how can they be addressed to ensure its success?
Dr. Emre Karahan: One major challenge is ensuring the project remains obvious and competitive, given its scale and the involvement of multiple stakeholders. The open tender process, as mentioned by Burak Daglioglu, is a positive step in this direction. Additionally, geopolitical risks, environmental concerns, and financing hurdles must be carefully managed.Collaboration between governments, private sector players, and international organizations will be key to overcoming these challenges and ensuring the project’s success.
Clara Bennett: Thank you,Dr. Karahan, for your insights. It’s clear that this $60 billion railway investment has the potential to transform not only Turkey’s infrastructure but also the future of Eurasian trade.
This partnership underscores the deepening economic and strategic ties between Turkey and China, setting the stage for a new era of global trade and connectivity. As the project unfolds, it will undoubtedly be closely watched by governments, businesses, and analysts alike.
