External financing for Turkiye’s railway infrastructure: TCDD plan

External financing for Turkiye’s railway infrastructure is central to Turkiye State Railways (TCDD) as it moves ahead with a railway modernisation program focused on maintenance, sustainability and efficiency across the 13,900 km network, as outlined by Railway Pro. Alongside the physical upgrades, the program also includes staff training and a digital approach aimed at integrating new technologies effectively.

This is reported by the railway transport news portal Railway Supply.

Turkiye’s rail sector is framed as a core part of the national transport and logistics system. With the country positioned at the crossroads of Europe, Asia, and the Middle East, the network is expected to expand as Turkiye pursues its ambition to become a regional logistics hub and strengthen connections between key markets.

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Over the last two decades, the railway network has grown from more than 11,000 km in 2003 to almost 14,000 km in 2024, including around 2,200 km of high-speed rail lines. The roadmap continues with a target of about 17,300 km by 2028 and 28,600 km by 2050. Those longer-range goals are linked to a planned shift in transport shares, aiming to reduce road traffic from 72% to 57% and increase the market share of rail transport to 22% from 5%.

As the UIC High-Speed Rail Atlas 2024 edition notes, Turkiye has 1,720 km of high-speed lines under construction and another 2,200 km planned, with most routes concentrated in the western half of the country. By 2040, the stated objective is a high-speed network of more than 6,000 km.

External financing for Turkiye’s railway infrastructure and the TCDD project

In the longer term, railway development is not limited to building new high-speed or conventional routes. It also involves complex work to modernize and maintain existing infrastructure, requiring rapid interventions and high-performance equipment to keep operations safe. The program also connects this effort to sustainability objectives, including reduced pollutant emissions, while streamlined operations and modern technologies are presented as steps toward a safer and more environmentally friendly rail system.

Within this context, TCDD’s modernization and maintenance project is intended to address several pressures on the network. It focuses on replacing outdated equipment, improving operational efficiency and strengthening resilience to climate change risks. The project is designed to mitigate the effects of aging infrastructure, rising traffic volumes and increasing thermal stress on railway lines, while strengthening institutional capacity by integrating digital technologies into maintenance planning. In the same framework, it supports long-term sustainability, contributes to decarbonization goals, and is meant to improve Turkiye’s regional connectivity and logistical competitiveness.

Project financing and AIIB co-financing

The project implemented by TCDD is budgeted at USD 623 million, with the Asian Infrastructure Investment Bank (AIIB) co-financing USD 415 million and Turkiye contributing USD 216 million, as set out in the AIIB project document. The AIIB documents describe a 15-year loan with a five-year grace period, and implementation is anticipated for 2025–2030 through a specialized project implementation unit within TCDD.

This sits within a wider push to secure external financing for railway infrastructure projects, including railway infrastructure maintenance activities. The text notes that last year Turkiye secured USD 15 billion in external financing for railway infrastructure. In December, Finance and Treasury Minister Şimşek said international financial institutions continue to back the program, arguing that rail investments would increase competitiveness, reduce the country’s carbon footprint, and support alignment with the EU’s Carbon Border Adjustment Mechanism. He added that efforts would continue to obtain external financing on favorable terms.

Purchase of railway infrastructure maintenance equipment

A practical centerpiece of the plan is the purchase of railway infrastructure maintenance equipment to modernize the TCDD fleet. The project foresees the acquisition of 99 new units, which is expected to reduce the average age of maintenance equipment from 25.5 years to 23.6 years. It also targets a tripling of the share of equipment that complies with Stage V emission standards, supporting Turkiye’s decarbonization commitments.

Reliability improvements are also set out. The average monthly number of breakdowns per machine is estimated to decrease from 1.5 to 1.2, while delays caused by maintenance work are projected to fall from 100 to 95.27 minutes per 1,000 km traveled by train. The project also includes training and certification of TCDD staff—751 employees, including operators, mechanics and trainers—and calls for integrating all new rolling stock into the TCDD asset management system within three months of commissioning.

Overall, the project is designed to improve the efficiency, reliability and sustainability of railway infrastructure maintenance, strengthening operational resilience, supporting passenger and freight reliability, and reducing the environmental impact of maintenance activities across Turkiye’s network.

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