A Turkish investment official has revealed that China is interested in helping Ankara modernize its railway network with an investment of around US$60 billion. The project could provide European freight shippers with an alternative route to bypass Russia amid the ongoing war in Ukraine.

Burak Daglioglu, president of Turkey’s governmental promotion office Invest in Turkey, shared details of the proposed upgrades to Hong Kong-based SCMP. 

These upgrades 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. 

The development of Turkey’s rail infrastructure is viewed as a key component in China’s Belt and Road Initiative to connect Europe and Asia. 

Turkey was among the first nations to back the Belt and Road Initiative (BRI). In 2015, Turkey and China formalized their collaboration through a memorandum of understanding, aiming to synchronize the BRI with the Middle Corridor Initiative. 

China’s state-owned CRRC Zhuzhou Electric Locomotive, which already operates a factory in Turkey, is expected to play a role in the upgrades. The company made its mark in Istanbul last year by introducing the city’s fastest metro train.  

According to the report, other contractors will also be invited to submit bids in an open tender process scheduled to begin soon.

Daglioglu expressed confidence in China’s interest, stating, “They are interested in the projects… As long as they are offering a competitive bid on the tender, they are welcome to join. There is huge potential for railway investments.” 

In addition to rail investments, China has also shown interest in Turkey’s technology sector, particularly 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 growing collaboration between the two nations. Daglioglu noted that 300,000 Chinese tourists visited Turkey in 2024, a slight increase from the previous year but still below the pre-pandemic figure of 500,000 in 2019. 

Ankara is working to expand its tourism partnership with Chinese provinces to raise awareness and attract more visitors.

“We would like to grow our collaboration in the tourism and cultural activities fields as well,” Daglioglu added. 

Turkey Aims To Establish Itself As A Key Rail Hub For Eurasian Trade 

Turkey is positioning itself as a central hub for Eurasian trade, particularly as European shippers search for alternatives to Russia due to the ongoing war in Ukraine. 

Despite the increasing interest in alternative paths, the China-Europe rail freight network still heavily depends on the route passing through Russia. More than 90 percent of the railway traffic between China and Europe uses the Northern Corridor, which goes through Russia and Belarus. 

However, EU sanctions and retaliatory counter-sanctions imposed by the Kremlin have presented challenges. 

For instance, operators in Italy 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 that fell under the country’s embargo list.

Moscow has explained that while some transit cargo 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.

In fact, Russia has continued to facilitate rail cargo transit through its territory in a standard manner, without imposing extra inspections on shipments unless deemed necessary. 

According to the reports, the 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. 

Consequently, there has been increasing focus on developing the Middle Corridor, where Turkey is positioned to play a crucial role.

The Middle Corridor is a much shorter route compared to the Northern Corridor, extending from China through Central Asia, the Caspian Sea, the southern Caucasus, and Turkey to Europe.

As Europe also seeks to reduce its dependence on Russia, Turkey is eager to present 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. 

Despite this potential, Menon warned that Turkey’s rail infrastructure remains a “weak link” in the broader network between China and Europe. He added that any disruption in this route could compromise the entire system. 

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