OPINION - The Development Road is gaining momentum

By Burak Elmali

- The author is a researcher at TRT World Research Center

ISTANBUL (AA) - The Development Road Ministers' Summit in Istanbul on August 29 marked a pivotal moment in the advancement of the Türkiye-Iraq Development Road Project, highlighting critical considerations in its implementation. During a press conference with his Iraqi counterpart, Razzaq Muhibis Al-Saadawi, Turkish Minister of Transport and Infrastructure, Abdulkadir Uraloglu, underscored the project's significance—not only as a viable alternative to global supply chains but also as a key initiative for integrating with other connectivity projects and fostering regional prosperity.

- What is the significance of this quadrilateral meeting between the ministers of Türkiye, Iraq, UAE, and Qatar?

During Türkiye's President Recep Tayyip Erdogan's visit to Iraq in April, one of the key agreements reached was the formation of a Council of Ministers to manage the construction and operation of the Development Road. The inaugural meeting of this council, held in Istanbul, marked a significant milestone, establishing the framework for this mechanism. It also set forth a roadmap for how the involved parties will institutionalize the project's funding and operations. Chief among these steps is the proposal to create a common funding system to which all stakeholders can easily send their funds for the project. With the first phase of the Development Road set to be completed and operational by 2025, concrete steps and operational details are beginning to take shape, bringing this ambitious initiative closer to reality.

- Strategic advantages

Since Oct. 7, Israel's war in Gaza has escalated, fueled by actions from Iran-backed groups, leading to spillover effects across the region. The Yemeni Houthis' active threats against maritime shipping in the Red Sea add another layer of complexity, effectively shutting off access to the Suez Canal or dramatically inflating costs due to exorbitant risk premiums by insurance companies.

Even without the threat of an attack, a ship navigating the Development Road from the Great Faw Port is expected to save 15 days in transit time. Meanwhile, vessels rerouting from the Bab-el-Mandeb Strait to the Cape of Good Hope face an additional 10-day delay, driving up logistics costs by 30%. These rising costs inevitably translate into higher prices for consumers.

On the other hand, the much-touted the India-Middle East-Europe Economic Corridor (IMEC) project, seen as a counter to China's Belt and Road Initiative (BRI) and a product of the United States (US)-China competition, has yet to deliver any concrete results. The war in Gaza has only added to the uncertainty surrounding the project's Arabian Peninsula leg, leaving it in a state of deep uncertainty. In this context, the Development Road is rapidly becoming an indispensable reality, offering a vital alternative for the flow of goods from Asia to European markets.

When it comes to the security concerns surrounding the Iraqi segment of the Development Road, there is no denying the potential threats posed by PKK terrorism and disruptive actions from pro-Iran militias. However, the dynamics are shifting. The PKK terrorism is now a significant issue for Baghdad too, and Iraq has made substantial efforts to build a partnership with Ankara. Given the commitment to coordinated counterterrorism efforts, these security concerns are well within reach of being resolved.

Moreover, the socio-economic stakes for Iraq are high. The diverse ethnic groups along the project’s route and the financial benefits it promises for the Iraqi economy make this project far more than just another infrastructure endeavor. Iraq’s keen interest in these economic gains suggests it will take more decisive and effective steps to address security issues than other projects like China-Pakistan Economic Corridor (CPEC), which faces significant challenges due to the deteriorating security environment caused by the violent actions of Baloch separatists. Therefore, the Development Road stands as a project that Iraq simply cannot afford to let falter.

- Interconnectivity between the Development Road and other trade corridors

Following the meeting, Minister Uraloglu highlighted the complementary relationship between the Development Road and other trade routes. When considering the long distances between resources and markets, there are clear opportunities for integrating different connectivity projects. For instance, the Development Road and the Middle Corridor could work together as a complementary duo, facilitating China's access to European markets. However, the geopolitical dynamics can vary with other projects. Take the CPEC, for example. Given the ongoing Baluchistan Liberation Army (BLA) attacks and Pakistan's current financial challenges, the project's near-term success seems unlikely. Yet, a route linking Gwadar Port with the Great Faw Port in the Persian Gulf could be feasible. For this to happen, the successful completion of the CPEC's Xinjiang-Gwadar road and rail connections is necessary.

* Opinions expressed in this article are the author’s own and do not necessarily reflect the editorial policy of Anadolu