Iran–Iraq Railway: Strategic gateway for $20 bn trade

28 September 2025, 15:58

MNA

Extending rail connectivity from China through Iran to Iraq opens opportunities for linking with Central Asia, which would have a generational impact on trade in West Asia, an economic expert says.

Mohammad Javad Shahjouee, an expert in Iran’s rail transport sector, in an interview with Mehr News Agency, underscored the strategic importance of the Shalamcheh–Basra railway, describing it as a pivotal project to deepen economic and social cooperation between Iran and Iraq.

The railway is not just about connecting two countries, Shahjouee said in an interview, adding, “This route plays an important role in the evolution of regional trade and international communications to the benefit of both countries.”

From Iran’s perspective, he explained, the priority of the project lies in passenger transport, as reflected in agreements reached between the presidents of both countries. However, the implications extend far beyond bilateral travel. This path will provide a new channel for linking multiple nations and reshaping the dynamics of regional commerce, he noted.

According to current estimates, he said, annual trade between Iran and Iraq could soon reach $20 billion. Existing road and rail networks are insufficient to handle such a volume, Shahjouee underlined, stressing the need for investment in new infrastructure as a necessity.

Emphasizing the Islamic Republic of Iran’s policy of expanding comprehensive connectivity with neighboring countries regarding other connectivity projects between Iran and Iraq, he added, “Iran is pursuing the development of the North-South corridor towards Russia through the eastern, western, and Caspian Sea waterways.”

He went on to say that China intends to use the Iran-Iraq route to export goods to Europe and Africa. Accordingly, the development of the railway connection between China and Iran can also be a basis for strengthening Iraq’s connections with China and Central Asia. New projects such as the Shalamcheh-Basra, Herat-Mazar-e-Sharif railways, and the establishment of an integrated railway network from China to Iraq via Iran play an important role in regional trade.

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