The Asian Infrastructure Investment Bank (AIIB) has approved financing of up to USD1.5 billion for the Istanbul North Rail Crossing Project (INRAIL), marking one of the bank’s largest transport infrastructure investments in Türkiye. The financing agreement, signed with the Republic of Türkiye, represents the first phase of AIIB’s support for the transformative rail corridor that will enhance connectivity between Europe and Asia via Istanbul.
The project is expected to remove one of Türkiye’s most significant rail transport bottlenecks while strengthening the country’s position as a strategic logistics gateway linking Asia and Europe.
Transforming Cross-Bosphorus Rail Connectivity
The Istanbul North Rail Crossing Project will introduce a 127-kilometre double-track, electrified and fully signalised railway connecting Çayırova on Istanbul’s Asian side with Çatalca on the European side.
A key feature of the project is the utilisation of the Yavuz Sultan Selim Bridge, providing a dedicated rail corridor across the Bosphorus and complementing the existing Marmaray railway tunnel.
The new railway will support:
- Passenger trains operating at speeds of up to 160 km/h
- Freight trains operating between 80 and 120 km/h
- Direct integration with Türkiye’s national high-speed rail network
- Improved connectivity to both Istanbul Airport and Sabiha Gökçen Airport
The new corridor is expected to significantly improve both passenger mobility and freight logistics across one of the world’s busiest metropolitan regions.
Freight Capacity Set for Major Improvement
One of the primary objectives of the INRAIL project is to separate freight and passenger rail operations, increasing overall network capacity and operational resilience.
According to AIIB, the project is expected to reduce freight rail journey times between Çayırova and Çatalca from approximately 13 hours to just 3.6 hours.
Passenger travel between Istanbul’s two international airports using public transport is also expected to improve substantially, with journey times decreasing from approximately 120 minutes to around 65 minutes.
These improvements are expected to strengthen logistics efficiency while supporting the continued growth of Türkiye’s role within the Middle Corridor, the strategic trade route connecting Asia and Europe.
AIIB Highlights Strategic Importance
Konstantin Limitovskiy, Chief Investment Officer for Region 2 at AIIB, described the project as one of the institution’s most significant connectivity investments.
He said the Istanbul North Rail Crossing Project demonstrates how sustainable, technology-enabled infrastructure can remove long-standing transport constraints while creating lasting economic opportunities and improving regional integration.
Türkiye Sees Project as Strategic National Investment
Kerem Dönmez, Director General of Foreign Economic Relations at Türkiye’s Ministry of Treasury and Finance, stated that the project represents one of the country’s most important transport investments.
He noted that the new railway will strengthen logistics competitiveness, support greener transport, reinforce the Middle Corridor and deliver long-term economic value for both Türkiye and neighbouring regions.
The financing also reflects continued confidence from international financial institutions in Türkiye’s infrastructure development programme.
Climate and Sustainability Benefits
Beyond transport improvements, the project is expected to deliver substantial environmental benefits.
AIIB estimates that the railway could reduce greenhouse gas emissions by approximately 16 million tonnes of CO₂ equivalent over its operational life through the modal shift from road transport to rail.
The investment also incorporates climate resilience measures aimed at improving the long-term reliability of Türkiye’s transport infrastructure.
Multilateral Financing Partnership
With an estimated total project cost of approximately USD8.27 billion, the Istanbul North Rail Crossing Project represents one of Türkiye’s largest ongoing railway infrastructure programmes.
Alongside AIIB, financing is being provided by several international development institutions, including:
- World Bank
- Asian Development Bank
- Islamic Development Bank
- European Bank for Reconstruction and Development
- OPEC Fund for International Development
The collaborative financing structure demonstrates strong international support for expanding sustainable rail infrastructure across Türkiye.
RailBays Insight
The Istanbul North Rail Crossing Project is one of the most strategically important railway developments currently underway in the region. By introducing a dedicated rail corridor across the Bosphorus, the project will relieve pressure on the existing Marmaray route, increase freight capacity, improve passenger mobility and strengthen Türkiye’s ambition to become a leading intercontinental logistics hub.
For the wider railway industry, the project also highlights the growing role of multilateral development banks in financing large-scale sustainable transport infrastructure that supports regional connectivity, economic development and decarbonisation.
Source : AIIB Press Release
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