Global Courant
ANKARA
The UK government announced on Monday that it is funding the construction of a high-speed electric railway in southern Turkey.
The announcement came from UK Export Finance (UKEF), the UK government’s export credit agency, which has committed €781m ($872m or £680m) for the project. The construction will enable Turkish conglomerate Rönesans Holding to complete a 286-kilometer (177 mi) electrified railway connecting the southern provinces of Mersin, Adana, Osmaniye and Gaziantep.
The railway is expected to reduce CO2 emissions by over 150,000 tonnes per year.
The deal is expected to open up new multi-million pound export contract opportunities for the UK’s infrastructure, engineering and project management sectors.
Mehmet Şimşek, Minister of Treasury and Finance, underlined the importance of Mersin, Adana and Gaziantep due to their highly industrialized and deep-rooted cultural heritage.
Şimşek emphasized that this project will reduce the transportation costs and shorten the travel time between Mersin and Gaziantep.
Şimşek said, “In this respect, this project is very important for economic, social and environmental integration.”
“The most important aim of the project is to improve the railway connection in Turkey and to create a sustainable alternative transportation scheme. We look forward to continuing our fruitful cooperation with new projects for Turkey’s development.”
Export Minister Malcolm Offord said: “UKEF’s support – given on the condition that British exporters supply the project – will support continued economic growth in the UK in line with government priorities; Rönesans Holding has already contacted British suppliers to negotiate contracts for electronic infrastructure, ESG consulting services, catenary and mechanical components.”
Erman Ilıcak, President of Rönesans Holding, commented, “By upgrading the existing railway line to a high-standard railway line, we will actively reduce the negative environmental impact while offering a lower carbon travel alternative and significantly improving the region’s industrial connectivity and trade.”
John Meakin, JP Morgan’s head of global export and agency finance, said: “This transport link, capable of carrying trains at speeds of up to 200 km/h (124 mph), is an important step forward for regional infrastructure and growth.”
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