WASHINGTON, DC, March 31, 2026-The World Bank approved a $2 billion loan for the Istanbul North Rail Crossing Project (INRAIL), a transformative investment that will strengthen railway connectivity across the Istanbul Strait (Bosphorus) and reinforce Türkiye's role as a key logistics hub linking Europe, Asia, and the Middle East. The approval of this loan leads the coordinated effort by six Multilateral Development Banks to provide $6.75 billion in financing for INRAIL.
The project will finance the construction of a 127-kilometer, electrified, high-capacity railway line that will provide a new overland rail crossing of the Istanbul Strait. Using the rail-ready Yavuz Sultan Selim Bridge and bypassing the Istanbul metropolitan area, INRAIL will significantly increase freight and passenger rail capacity, reduce logistics costs, connect Istanbul's two airports to each other and to the national rail network, and improve the reliability of critical national and intercontinental transport corridors, including the Trans-Caspian, Türkiye-EU, and Iraq Development Road corridors.
"This project is a strategic and transformational investment for Türkiye," said Humberto Lopez, World Bank Country Director for Türkiye. "By removing a critical rail bottleneck at the Istanbul Strait and enhancing the resilience and efficiency of rail infrastructure, Türkiye is boosting its competitiveness and reinforcing its role as a logistic hub. Indeed, the project will accelerate growth, contribute to job creation and more sustainable transport. And INRAIL will also generate benefits for the wider region as it will connect to other international corridors such as the Middle Corridor allowing merchandise to move between Europe and Central Asia, and the Development Road allowing traffic between Europe and the Gulf through Iraq. Indeed, this is more than building a bridge, it is about bridging continents."
Türkiye's major rail corridors passing through Istanbul, including the Transcaspian Transport Corridor (TCTC) or Middle Corridor, the Iraq Development Road, and the Türkiye-EU corridor are essential for trade and economic growth but currently face a critical bottleneck at the Bosphorus. INRAIL will resolve this constraint, enable uninterrupted, high-capacity rail operations and strengthen business continuity in the face of natural hazards. About half of the alignment will run through tunnels, reducing exposure to extreme heat, flooding, strong winds, and wildfires.
Once operational, rail freight capacity across Bosphorus is expected to rise from around 3 million tons per year to up to 50 million tons - a more than fifteen-fold increase that will significantly improve travel times, reliability, and predictability for freight operators.
"INRAIL will increase the quality and quantity of railway infrastructure across a key link, increasing the competitiveness of rail transport in the entire country," said Daniel Pulido, World Bank Task Team Leader. "By doing so, it will help Türkiye achieve its goal of shifting more passengers and freight from trucks to rail and enable long-term private sector investment in logistics and transport services."
INRAIL is expected to generate up to 414,000 better-paying jobs - including up to 99,000 new jobs - across communities along Türkiye's national and international rail corridors, and will positively impact manufacturing, agriculture, and services sectors. It will also expand opportunities for women in the transport sector through an internship program for female university students.
With a total estimated cost of approximately $8.3 billion, INRAIL is being delivered through a coordinated international financing effort. The World Bank is leading project preparation and financing, working closely with the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), European Bank for Reconstruction and Development (EBRD), Islamic Development Bank (IsDB), and the OPEC Fund for International Development, which together are expected to provide financing of approximately $6.75 billion to complement counterpart funding from the Government of Türkiye. As lead IFI, the World Bank is mobilizing development finance, coordinating co-financing arrangements and applying a single, streamlined procurement approach to simplify implementation.
The Istanbul North Rail Crossing Project aligns with Türkiye's national development priorities and long‑term transport strategies. The World Bank remains committed to supporting Türkiye in building sustainable, resilient infrastructure that promotes inclusive growth and strengthens regional integration.
