UK announces 680 million for new high speed electric trains in Turkey

The construction of a 286-kilometer high-speed electric railway in southern Turkey is being supported by a €781-million (about £680 million) loan guaranteed by UK Export Finance (UKEF), the UK government’s export credit agency.

Rönesans Holding, on behalf of the Turkish Ministry of Transport, will use funds from UKEF’s Buyer Credit Facility to finish the construction of the Mersin-Adana-Gaziantep High-Speed Railway.

The deal is expected to help the Prime Minister achieve his goal of growing the UK economy by providing new prospects for multimillion-pound export contracts in the infrastructure, engineering, and project management sectors.

This bodes well for UK exporters in the long run because Rönesans Holding, one of the ten largest construction companies in Europe, intends to use the high-speed rail project to increase its contacts with the UK supply chain.

British and Turkish commercial ties are on the upswing. A revamped trade deal was announced this week, which will increase imports and exports between the UK and Turkey. The UK sold items to Turkey last year worth £8.5 billion.

The fact that UK Export Finance is backing this innovative high-speed rail system just adds to the success tale. This deal shows that the UK, which boasts the world’s first railway system, is continuing to spread its pioneering rail knowledge and technology around the globe.

To ensure that Rönesans Holding’s procurement of electronic infrastructure, ESG consultancy services, catenary, and mechanical components aligns with government requirements, the company has begun contract negotiations with UK suppliers. UK Export Finance’s (UKEF) backing of the project will aid in the further expansion of the British economy.

UKEF worked with the Italian Export Credit Agency SACE and the Austrian Export Credit Agency OeKB to obtain this landmark agreement for the Turkish rail infrastructure. J.P. Morgan, ING Bank, and BNP Paribas provided the financing.

We’re thrilled to be working with UKEF, JP Morgan, ING, and BNP to seal a deal that will forever alter the course of the high-speed railway project in Turkey.

Upgrading the existing railway line to a high quality railway line will considerably boost industrial connectivity and trade in the region, while also actively reducing negative environmental effect and giving a lower-carbon transit choice. Rönesans Holding places a premium on contributing to Turkey’s efforts to improve the country’s infrastructure and the environment.

To build the revolutionary high-speed electrified railway in southern Turkey, we partnered with British Exporters and raised €781 million. This will increase trade between Turkey and the UK and pave the way for new international partnerships.

The program’s objective is to reduce highway congestion and encourage eco-friendly modes of transportation in the area. We’re ecstatic to be entrusted with this project’s funding, and we look forward to supporting UK exporters as they bring cutting-edge goods, services, and expertise to the global market.

In place of the current railway between Mersin and Gaziantep, which uses diesel locomotives, the electrified line will provide a less carbon-intensive alternative. Project estimates show that after one year of operation, the completed route will reduce annual CO2 emissions by 157,000 tonnes.

The UK European Fund-backed project will also help Turkey achieve its aim of increasing the length of its high-speed rail network to 10,000 km by constructing a railway link greater than the distance between Cardiff and London.

The capacity of this transit link to carry trains travelling at up to 200 km/h is a major boon to regional development and progress. The high-speed rail will cut travel time from Gaziantep to Mersin, the country’s second-largest container port and a bustling metropolis of over a million people, by four hours by passing through the regional cities of Adana and Osmaniye.

Mersin, Adana, and Gaziantep are three of the area’s major, heavily industrialised cities with a deep cultural history. When this project is finished, getting from Mersin to Gaziantep will be faster and cheaper thanks to better rail connections.

When it comes to bringing together the economy, society, and ecology, this endeavour is crucial. The expansion of the country’s rail infrastructure is an important goal, and we are grateful to our trading partner UKEF for helping to fund this important project.

The basic objectives of the project are to improve rail connectivity and create a functional alternative transport system in Turkey. We are excited to continue our fruitful collaboration and launch new projects to help Türkiye progress.

Gaziantep, the eastern terminal of the railway, was in close proximity to the core of the 7.8 magnitude earthquake that struck Turkey in February 2023. Restoration efforts in Gaziantep, Osmaniye, and other hard-hit areas of southern Turkey will benefit from the UKEF-supported initiative to finish this railway.

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