Turkey-Iran and Turkey-Nakhchivan Railway Projects
9 m. | 2026-04-08The development of international transportation infrastructure has become one of the most important factors in a country’s economic competitiveness and geopolitical influence. In this context, Turkey, as a bridge between Asia and Europe, has consistently pursued a policy of expanding and modernizing its railway infrastructure. This strategy is based on both multi-billion-dollar investment programs implemented domestically and new railway projects developed in collaboration with neighboring countries, notably the Turkey-Nakhchivan railway routes.
In recent years, the railway cooperation between Turkey and Iran has gained new momentum, driven by both bilateral economic interests and a desire to participate more actively in global trade networks. Although bilateral transport relations have experienced occasional tensions over the past two decades, economic interests and a desire for cooperation have continued. During this period, rail service between Tehran and Van was suspended several times. (Due to earthquakes in Van in 2011, and due to Turkish-Kurdish clashes in 2015. The traffic, which resumed in June 2019, was suspended again in February 2020 because of the pandemic. After a five-year pause, it resumed in March 2025, but was suspended again in March of this year due to the Iran-Israel-US war.) The Islamabad-Tehran-Istanbul container train, launched in 2009 on the same basis, resumed operations on December 31, 2025, after a long pause.
In December 2025, Iranian Foreign Minister Abbas Araghchchi and Turkish Foreign Minister Hakan Fidan announced that they had reached an agreement on the construction of a new railway in Tehran. The Marand-Cheshmeh-Soraya railway transit line, initiated by Iran and planned to reach the Aralık border region of Turkey’s Igdir Province, is considered a key section of the transit route that will be put into operation in the future. The cost of constructing this line, which is approximately 200 km long, is about $1.6 billion, and construction is expected to be completed in three to four years. According to Iranian officials, this section should be developed into a full-fledged rail corridor that will provide seamless, fast, and relatively inexpensive freight transport from China to Europe.
This project is viewed as a key component of the transit system taking shape along the China-Iran-Turkey-Europe axis, serving as an alternative or complementary southern route to the Middle Corridor (Baku-Tbilisi-Kars route).
Iranian Roads and Urban Development Minister Farzaneh Sadegh stated that the southern section of the railway line, once part of the Silk Road, would be transformed into "a complete railway corridor ensuring the continuity of the network between China and Europe," enabling “the rapid and inexpensive transportation of all types of cargo with minimal delays.”
It should be noted that in 2013, China announced the Belt and Road Initiative, officially referred to as the New Silk Road. Iran is seeking to expand its infrastructure and trade with neighboring countries in an effort to revive its economy, which has been battered by years of international sanctions. Transit revenues, unlike oil exports, are less subject to external pressures. The infrastructure created as a result of the project may also stimulate the development of related sectors, such as warehousing services, customs operations, interregional transportation and so on. If the Marand-Cheshmeh-Soraya railway transit line is put into operation, it is possible that the parties may also use this line for transporting passengers in the future.
For Turkey, this cooperation serves several purposes: first, it expands transit opportunities to Asian markets, second, it provides economic benefits by boosting regional trade; and third, it strengthens Turkey’s strategic position in the South Caucasus and the Middle East.
The expectations of the population in Turkey’s eastern regions are primarily focused on the creation of new jobs, the expansion of trade, and the creation of new opportunities for the youth. At the same time, it is expected that infrastructure development and the revival of the historic Silk Road will also contribute to the region’s growing appeal to tourists.
The deepening of Iranian-Turkish cooperation in the railway sector is also driven by foreign policy factors. Particularly, Turkey’s exclusion from the agreements reached in Washington and its omission from Trump’s Path program have created a new strategic situation. Although the Iran-Turkey rail link has existed for several decades and efforts have been made in the past to expand it, current geopolitical developments are giving this cooperation new momentum. Thus, Iran’s increased activity is also linked to its emergence as a competitive transit hub in the region. Of course, it should also be noted that these proactive measures are driven not only by the need to respond to new initiatives but also represent a continuation of previously established transportation policy.
As a result, a certain convergence of interests emerged, within which the parties announced the construction of a new railway line aimed at making their territorial and transit potential more attractive, especially to China.
One of the key components of Turkey’s regional strategy is the establishment of a rail link to Nakhchivan, which is to be implemented via the Kars-Iğdır-Aralık-Dilucu railway. This 223.6-kilometer-long project is expected to transport 5.5 million passengers and 15 million tons of cargo annually, making it one of the leading logistics projects in the South Caucasus.
Although estimates of the project’s total cost vary, it is estimated to be approximately 110 billion liras (about $6.05 billion), underscoring its scale and strategic importance. The Turkish Ministry of Finance and Treasury has secured €2.4 billion in external financing to implement this program.
This route is designed to ensure uninterrupted connectivity between Turkey, Nakhchivan, and Azerbaijan. About 80 kilometers of railway modernization work has already been completed in Nakhchivan, and plans are in place to build a new section approximately 20 kilometers long. The project was originally scheduled to be completed in 2029. The construction is carried out by Kalyan Holding, a company known in Turkey for its pro-government views. However, a key section of the project, a 43-kilometer-long line running through the Meghri region of Armenia, is still under discussion, which significantly affects the timeline for the entire project.
The project includes:
- 6 stations
- 5 tunnels
- 3 viaducts
- 10 bridges
- 144 underpasses
- 27 overpasses
- 480 drainage channels.
Turkish Transport and Infrastructure Minister Abdulkadir Uraloğlu, commenting on statements made by Azerbaijani officials, said at a press conference on March 22 of this year: “If construction activities begin on the Armenian side this year, the construction of the lines is expected to be completed within 5 years.”
Official statements from Turkey indicate that the country is determined to continue implementing this project, viewing it as the foundation for transport integration among Turkic states. In this context, it is presented not only as an economic project but also as a political one aimed at strengthening ties within the Turkic “geopolitical and cultural sphere.”
According to the Turkish Minister, this project, which is part of the Middle Corridor, will significantly reduce the time it takes to transport goods between Europe and Asia, making rail transport more popular than sea transport. The projected operating income over 30 years is expected to reach 135 billion lira ($3.15 billion), 3 billion lira in accident savings ($67.5 million), 2.1 billion lira in climate savings ($47.25 million), 3.5 billion lira in time savings ($78.75 million), and 4 billion lira in road maintenance savings ($90 million). Overall, over 30 years, the revenue is projected to reach 147.6 billion lira ($3.321 million).
It is worth noting that according to data from the Turkish State Railways, the country’s railway network currently spans 13919 km, of which more than 2200 km are high-speed and fast rail lines. Ankara plans to increase this figure to more than 17700 km by 2028, significantly expanding both conventional and high-speed rail lines. Expanding the railway network and establishing new transport links will enhance Turkey’s transport independence, help reduce its political dependence on the outside world, and create new economic opportunities both domestically and abroad.
The construction of the Turkey-Iran and Turkey-Nakhchivan railway is taking place against a backdrop of international competition and geopolitical shifts. Although Turkish authorities assure that these projects, in particular the operation of the Turkey-Nakhchivan railway, will not overshadow the traditional Baku-Tbilisi-Kars route, the goal is to reduce dependence on a single route and create alternative logistic routes.
Russia’s and Iran’s concerns about these projects stem primarily from the potential for their regional influence to be limited. Russia, which has controlled a significant portion of the region’s transport routes for many years, may lose some of its influence, while Iran is concerned that the new corridors could reduce the volume of transit cargo passing through its territory. At the same time, China may view these projects as an additional opportunity within the Belt and Road Initiative.
Railway connections between Turkey and Iran, as well as between Turkey and Nakhchivan, represent not only infrastructure projects but also multifaceted strategic initiatives that combine economic, political and geopolitical objectives. On the one hand, they promote regional economic integration, improve logistics efficiency and foster socioeconomic development, on the other hand, they shift the balance of power in the South Caucasus and the region as a whole.
In this context, Turkey is seeking not only to diversify its transit routes but also to strengthen its position in the region further, gradually emerging as a major logistical and geopolitical player capable of exerting significant influence on the shaping of transport and trade flows between Asia and Europe.