UK government backing enables completion of a 286km electric railway in southern Turkey, connecting major cities with a high speed, lower carbon route.
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UK Export Finance (UKEF), the UK government’s export credit agency, has underwritten €781m of financing equivalent to £680m to support construction of a 286km high speed electric railway in southern Turkey.
With financing provided through UKEF’s Buyer Credit Facility, Rönesans Holding will finish construction of the Mersin Adana Gaziantep High Speed Railway on behalf of the Turkish Ministry of Transport.
The deal is expected to create new, multimillion pound export contract opportunities for the UK’s infrastructure, engineering and project management sectors, supporting the Prime Minister’s priority of growing the UK economy.
This signals key future opportunities for UK exporters, with Rönesans Holding one of Europe’s ten largest construction companies intending to use the high speed rail project to build its wider relationships with the UK supply chain.
Lord Offord, Minister for Exports, said: "The UK Turkey trading relationship is going from strength to strength. Last year, UK exports to Turkey reached £8.5 billion, and this week we announced plans for an updated trade deal that will further boost exports and imports between our countries.
"UK Export Finance’s backing for this transformative high speed railway adds to this success story. This deal shows that the UK, home to the world’s first railway system, still moves full steam ahead with its export of railroad innovation and expertise."
UKEF’s backing which has been given on the condition that UK exporters supply to the project will support continued economic growth in the UK, in line with the government’s priorities; Rönesans Holding has already engaged with UK suppliers to negotiate contracts for electronic infrastructure, ESG consultancy services, catenary and mechanical components.
In replacing the current railway, which relies on diesel locomotives, the electrified line will provide a lower carbon alternative to existing routes between Mersin and Gaziantep. Project forecasts suggest that the completed route will save 157,000 tonnes in CO2e emissions in its first year alone.
The UKEF backed project will also contribute directly to Turkey’s objective of increasing high speed railway coverage to 10,000km, by creating a rail link greater than the distance between Cardiff and London.
Able to carry trains travelling up to 200 km/h, this transport link is a major step forwards for regional infrastructure and growth.
The high speed railway will reduce the travel time from Gaziantep via regional cities Adana and Osmaniye to Mersin by four hours; Mersin is the second largest container port in the country and a thriving city of over one million people.
Gaziantep, the railway’s eastern terminus, was near the epicentre of the 7.8 magnitude earthquake which struck Turkey in February 2023.
The UKEF backed project for completing this railway will also contribute to reconstruction in Gaziantep, Osmaniye and other areas of southern Turkey severely damaged in this disaster. ■