All aboard, Iraq plans to steam into a new future

Few countries in the Middle East have suffered more from conflict and worked harder for its end than Iraq.

Ravaged by war with Iran, the dictatorship of Saddam Hussein, the US-led invasion of 2003 and then the grim experience of Daesh, the Iraqi nation knows the true meaning of suffering and resilience.

Earlier this year the anniversary of the Iraq war and the toppling of Saddam triggered a spurt of media coverage.

For the most part, the tone was of admiration for the Iraqi people’s capacity for endurance, speckled with pity and regret. That, and continuing concern about Iranian influence in Iraq’s national politics.

Successive governments in Baghdad have resisted pressures to confront their powerful neighbour and former foe and instead have sought to play a role of reconciliation with the Arab world. 

This has been Iraq’s policy for years and, while the credit for peace-making is shared with others, the fruits of that policy are now becoming visible.

For its part, Iraq has long planned the renewal of national infrastructure it clearly needs to reinvigorate its economy.

This ambition for Iraq to take its proper place in the economic networks of the region has been given fresh impetus by a new government led by Prime Minister, Mohammed Shia Al Sudani, who took office last autumn.

If it survives legal appeal, the recent judgement on oil exports from the Kurdish Autonomous Region being subject to national control should strengthen Iraq as a unitary state.

But Al Sudani’s most ambitious move is to promote the “Development Road” – a long-planned road and rail artery pumping new life into the economy. It would span the length of the country, from Rabia, on the northern border with Turkey, to the new commercial port of Al-Faw, on the Gulf, in the south.

With transport and logistics increasingly recognised as a key sector in the global economy, al-Sudani wants to make Iraq a transportation hub for goods and people linking the Gulf, Turkey and Europe. 

There is an echo here of China’s “Belt and Road” initiative, which aims to see 130 countries across Asia, Europe and Africa connected to China through new land and sea infrastructure. 

The 750-mile Development Road also evokes memories of the original Berlin-Baghdad railway, which started construction in 1903 and was only finished in 1940. The basis of that German imperial project was the Kaiser’s desire to connect directly with the Ottoman world, and beyond it Iran, with a line running through Turkey, Syria and Iraq.

At the outbreak of WW1 the railway was still 600 miles short of Baghdad, but had completed the branch running through Damascus to the Hejaz, serving the pilgrimage route to Medina.  By then imperial rivalries had embroiled the project, and the last stretch was only completed in the 1930s by an independent Iraq.

An updated concept of the original plan is now being pitched to investors.  Attending the recent launch of al-Sudani’s Development Road in Baghdad were the regional states which could most benefit from the new infrastructure – Kuwait, Qatar, the UAE, Saudi Arabia, Jordan, Iran and Turkey. 

It is too soon to expect pledges of co-investment in the project, which has a headline cost of $17bn. Though Qatar has indicated its potential support and is already a major investor in infrastructure in Turkey,

Planners and policy-makers will be thinking hard about the proposal. Economists will be examining the commercial case for a land route which seeks to avoid the shipping route through the Suez Canal. For shipments at scale, sea transport to and from the well-established facilities in northern Europe, or on to India and further East, will remain unbeatable on cost. 

Some reassurance has come from the World Bank which has spoken in support of the project and World Bank involvement in funding (and thus supervision) will also bring comfort to investors.

While Syria probably offers a less expensive route to a Mediterranean port, Iraq rightly sees Turkey as an important economic partner, with complementary strengths and opportunities for collaboration.

Relations have been bedevilled for years by Turkish encroachment on Iraqi sovereign territory in pursuit of its fight against Kurdish separatists – a problem Baghdad has been working patiently to resolve. 

But the creation of economic and communications infrastructure for the benefit of shared prosperity is a courageous and necessary step for both countries to take. 

Yes, there will be security concerns. Nothing can be taken for granted.  But the long game has to be played, and the prize is immeasurable for a country that has suffered so much.

James Watt
James Watt
James Watt is a former UK ambassador to Lebanon, Jordan and Egypt.