China is exploring opportunities to invest in Turkey's railway network, with proposed upgrades estimated at $60 billion, according to a report by the South China Morning Post (SCMP). The improvements aim to create a faster, more efficient freight route to Europe that bypasses Russia, as the ongoing conflict in Ukraine disrupts traditional transport corridors.
Key developments under consideration include railway electrification, new domestic routes, a bridge in Istanbul, and a high-speed rail line connecting Istanbul to Ankara. A. Burak Daglioglu, president of the Turkish governmental agency Invest in Turkiye, told SCMP that Chinese firms, including equipment maker CRRC Zhuzhou Electric Locomotive, have shown interest in the projects. The company, which operates a factory in Turkey, recently introduced the country’s fastest metro train in Istanbul.
The upgrades are part of a broader effort to strengthen Turkey’s position as a transit hub for the China-Europe Railway Express, which has seen substantial growth, with 1.9 million 20-foot equivalent units of cargo transported in 2023 compared to just 1,400 in 2011, according to market research firm Statista. However, experts cited by SCMP note that Turkey remains a “weak link” in the network due to infrastructure limitations, emphasizing the need for significant investment to realize its full potential.
Turkey’s railway projects will involve an open tender process, with Daglioglu noting that competitive bids from Chinese companies are welcome. Jayant Menon, a senior fellow at Singapore’s ISEAS-Yusof Ishak Institute, highlighted in the SCMP report that a Turkish route offers a viable alternative for European shippers who are wary of routes passing through Russia.
In addition to infrastructure, China has invested in Turkey’s technology and energy sectors, with Chinese investment reaching $6 billion across 1,300 companies as of mid-2024, according to Invest in Turkiye. Tourism is another area of growing cooperation, with Chinese tourist numbers rebounding post-pandemic to 300,000 in 2024, though still below pre-pandemic levels.
