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Analysis

Dry Canal, Iraq’s Costly Project to Link Persian Gulf to Europe

Tuesday 15 August 2023
Dry Canal, Iraq’s Costly Project to Link Persian Gulf to Europe

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Alwaght- In recent years, competition among West Asian countries for a bigger role in East to West trade corridors has been growing. 

In this competition, one of the countries that is seeking a toehold in the competitive regional markets through a new initiative is Iraq that is joining the race with its Dry Canal project as part of a broader initiative called Development Route (DR). 

The DR initiative was first raised by Iraqi Prime Minister Mohammed Shia al-Sudani during his Turkey visit in March. Through this project, Iraq actually aspires to become an Asia-Europe transportation hub through developing Al-Faw Grand Port. Al-Faw is a port city in Basra province south of Iraq and is one of the main Iraqi ports on the Persian Gulf coast. 

Before his Turkey visit, al-Sudani had written in an article that said: “The Al-Faw Grand Port project includes the Dry Canal, which passes through Diwaniyah, Najaf, Karbala, Baghdad and Mosul by a highway and a railway, and extends to the Turkish border and then Port of Mersin.” 

On January 27, the official Iraqi news agency, citing Yunus Khalid Al-Kaabi, director of the Public Railway Company, confirmed that the Dry Canal project is very vital and of particular importance, and is among the government's strategic projects. 

This port project is under construction by South Korea’s Daewoo company. The project’s area is more than 20 square miles and includes industrial areas, housing projects and tourist attractions and has cost more than $4.83 billion so far. The project is slated to launch by 2025. 

Ambiguity in connection to New Silk Road 

This massive national project that the government of al-Sudani is seriously pursuing has been a source of controversies, among them the doubts some politicians and lawmakers cast on the remarks by government officials about the geoeconomic effects of Dry Canal. 

Amid the intense competition of transit projects among rivals for involvement in China's Road and Belt Initiative (RBI), al-Sudani claims that the Dry Canal project will increase Iraqis share in RBI and does not conflict with it. 

Meanwhile, some members of parliament and economic experts have questioned the government's claim and argue the project will set up an obstacle ahead of Iraq's participation in the Chinese megaproject. In this regard, Hassan Salem, a member of the Sadequn parliamentary block repeatedly criticized the government's development project that connects to Europe through Turkey and says that it dashes the Iraqi people's hope to link to the RBI project that is designed by China and Iran. 

In a statement published by his office, Salem describes the Dry Canal project as a “killer” of the development in Iraq, though his warning was rejected by the government officials, advisors, and the interior ministry. 

In a letter signed by 148 other lawmakers, Salem called on the PM to activate the economic pact with China through completion of Al-Faw Grand Port and fast connection of Iraq to RBI. 

“The New Silk Road was announced by President Xi Jinping of China in 2013. This project is formally known as Road and Belt Initiative and covers 130 countries and its goal is to develop sea and ground infrastructures for a better connection among China, Europe, and Africa through Iran,” his letter read. 

At the same time, the Ministry of Transportation disagrees with this claim and says it refutes all these doubts with evidence. 

After the ministry's statement in rejection of his doubts, Salem insisted and, quoting the Chinese ambassador in Iraq, he once again lashed out at the government. 

“A couple of days ago, they denied the Silk Road and now they falsely trumpet that Chinese ambassador told them that Dry Canal complements the Road and Belt Initiative. Is not there any advisor to tell the prime minister that Chinese ambassador warned us and tried to make us understand that the Road and Belt Initiative is a priority,” he said. 

Bumpy road 

In the middle of questions about if al-Sudani’s corridor would be beneficial to the Iraqi economic interests, an important issue is the difficulties and many obstacles that the project faces. 

Despite the substantial significance of this futuristic project for the Iraqi government, it faces a series of security and political challenges that prevent its completion. 

While the Iraqi government has announced 2029 as the year for the operation of the project, a report by Arab Gulf States Institute in Washington (AGSIW) suggests that the completion of the project is impossible before 2038, with a cost of more than $20 billion. 

Farhan Al-Fartosi, the head of General Company for Ports of Iraq, told to the Turkish Anadolu news agency last year that he expects the construction of Al-Faw Grand Port to be completed by 2025 and its rail corridor by 2029 at most.

Certainly, funds to this project are one of the multiple problems of the Iraqi government which is trying to solve by injecting foreign investment into the project. For this purpose, Baghdad has bet on captivating the attention of the Persian Gulf states and by claiming to quickly connect the Persian Gulf to Turkey and Europe. 

In the other hand, observers claim that security and political instability in Iraq may put the project at stake. According to AGSIW, the success of the project depends on the region's security conditions, and ISIS and PKK terrorist groups may disrupt its implementation. 

There is a question facing the Iraqis after elaboration on the Dry Canal project: Is not it more consonant with Iraqi interests to connect Persian Gulf and then Turkey and Europe by railway through Iran and also participation in RBI as a cheaper and more secure alternative? 

While the Iraqi government has to go a long way and spend several years of time and huge funds to connect to Europe, especially at a time the rivals are reaping the interests of quick incorporation in the RBI, Baghdad only needs to put on its agenda development of the project of Shalamcheh-Basra railway to Persian Gulf. 

Tags :

Iraq Dry Canal Project Silk Road Railway Iran Persian Gulf

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