The Asian Infrastructure Investment Bank (AIIB) and the Republic of Türkiye have signed the first phase of the AIIB’s financing package amounting in total to up to USD1.5 billion for the Istanbul North Rail Crossing Project (INRAIL), a major rail investment designed to strengthen cross-Bosphorus (Istanbul Strait) connectivity and reinforce Türkiye’s role as a strategic transport gateway between Asia and Europe.
The financing will support the construction of a new high-capacity rail corridor linking the European and Asian sides of Istanbul via the Yavuz Sultan Selim Bridge. The project directly tackles one of Türkiye’s most critical intercontinental rail bottlenecks by expanding cross-Istanbul rail capacity, improving the efficiency of freight and passenger transport, and accelerating a shift from road to rail.
Once completed, the project will deliver approximately 127 kilometers of double-track, electrified, and fully signalized railway connecting Çayırova on Istanbul’s Asian side with Çatalca on the European side. The line will support passenger services operating at speeds of up to 160 kilometers per hour and freight services at 80–120 kilometers per hour. It will also create seamless connectivity between Istanbul Airport, Sabiha Gökçen Airport, and Türkiye’s high-speed rail network.
“The Istanbul North Rail Crossing Project represents a strategic investment in Türkiye’s transport future and one of AIIB’s most significant connectivity operations to date,” said Konstantin Limitovskiy, Chief Investment Officer, Region 2, AIIB. “By removing a longstanding structural bottleneck for freight and passenger transport, the project demonstrates how sustainable, technology-enabled and connected infrastructure can generate lasting economic opportunities while strengthening regional integration and resilience.”
By complementing the existing Marmaray corridor and enabling the separation of freight and passenger operations, the project will strengthen the resilience and efficiency of Türkiye’s rail network. It is expected to reduce rail freight travel time between Çayırova and Çatalca from around 13 hours to 3.6 hours, while passenger travel time between Istanbul Airport and Sabiha Gökçen Airport by public transport is also expected to be nearly halved, from around 120 minutes to 65 minutes.
“The INRAIL Project represents one of Türkiye's most strategic transport investments, reinforcing our vision of establishing an integrated, resilient and sustainable transport network that strengthens connectivity both within our country and across the wider region," said Kerem Dönmez, Director General of Foreign Economic Relations at the Ministry of Treasury and Finance. "This financing reflects the confidence of our international development partners in Türkiye's economic fundamentals and project implementation capacity. The project will strengthen the competitiveness of the Middle Corridor, enhance logistics efficiency, support greener transport, and create long-term economic value for Türkiye and the region. We highly value our partnership with AIIB and the broader multilateral development bank community in advancing sustainable and inclusive growth.”
INRAIL is also projected to reduce greenhouse gas emissions by approximately 16 million tonnes of carbon dioxide equivalent over its operating period. AIIB’s financing will contribute primarily to climate mitigation, with additional adaptation benefits through enhanced infrastructure resilience, supporting Türkiye’s transition to a lower-carbon and more resilient transport system.
With a total project cost of approximately USD8.27 billion, the project is among AIIB’s largest transport investments in Türkiye and a cornerstone of a broad-based multilateral development bank partnership. AIIB is co-financing the project alongside the World Bank, the Asian Development Bank, the Islamic Development Bank, the European Bank for Reconstruction and Development and the OPEC Fund for International Development.
About AIIB
The Asian Infrastructure Investment Bank is a multilateral development bank dedicated to financing “Infrastructure for Tomorrow,” with sustainability at its core. AIIB began operations in 2016, now has 111 approved members worldwide, is capitalized at USD100 billion, and is AAA-rated by major international credit rating agencies. AIIB collaborates with partners to mobilize capital and invest in infrastructure and other productive sectors that foster sustainable economic development and enhance regional connectivity.
