Iraq's Al-Faw Port: A $4.9B dream set to revive trade and open doors to opportunities
Shafaq News/ Iraq’s Al-Faw Grand Port, a $4.9 billion mega-project onAl-Faw Peninsula in Basra, is poised to revolutionize the nation’s economy. Setto realize the country’s dream in 2025, the port will not only generate over150,000 jobs but also become a driving force behind Iraq’s economictransformation. As a flagship element of the Development Road initiative, itpromises to diversify the economy and reduce reliance on oil, ushering in a newera of opportunity for Basra and beyond.
About Al-Faw Grand Port
The foundation stone for Al-Faw Port was laid on April 5, 2010. Thisstrategic project, with an estimated cost of approximately 4.6 billion euros(about $4.9 billion), is projected to have a capacity of 99 million tonsannually, positioning it as one of the largest ports in the Gulf and the tenthlargest worldwide.
Being one of the most significant projects within the Development Roadinitiative, the port has sparked substantial debate across Iraq, especially dueto repeated delays in its completion. Members of Parliament have accusedsuccessive governments of making compromises with neighboring countries thatultimately slowed down the port's development to benefit competing regionalports. Additionally, the project suffered a major setback after the unexpectedsuicide of the technical director from South Korea's Daewoo Corporation, thecompany contracted to execute the project.
About Development Road Project
Iraq’s Development Road project, officially launched during TurkishPresident Tayyip Erdogan's visit to Baghdad in April, is set to become acornerstone of regional trade and economic growth. Earlier, Iraqi PrimeMinister Mohammed Shia Al-Sudani stated that the vital Road project "willtransform Iraq from a landlocked country to an open one."
The project features a 1,275-kilometer (792-mile) rail and road networkdesigned to streamline the movement of goods between Europe and the Gulfregion. It is anticipated to significantly reduce trade costs between China andEurope, with energy playing a crucial role due to Iraq's substantial oilreserves.
Iraq holds approximately 10% of global oil reserves and contributes 5%of global production. This strategic advantage is expected to enhance theproject's impact on regional trade.
The investment budget for the project is estimated at $17 billion, with$6.5 billion allocated for highways and $10.5 billion designated for anelectrified railway.
In addition to transforming regional trade dynamics, the Road Project isforecasted to create 100,000 jobs in its first phase and potentially up to onemillion jobs upon completion.
Iraq's Most Prominent Project
On September 14, Al-Sudani underscored the importance of increasingresearch and awareness about Al-Faw Port and the Development Road projects, andthe opportunities they will bring. He stressed that these two projects arevital to Iraq's economic future, highlighting their role as “key pillars inexpanding the non-oil economy.”
Earlier, the PM announced the completion of five berths, marking a majormilestone in the first phase of Al-Faw Port project, describing the port as"Iraq's most prominent project and a project for the people."
At the handover ceremony of the berths from the executing Koreancompany, Al-Sudani acknowledged the "significant challenges" hisgovernment faced in initiating the crucial Development Road project, describingAl-Faw Grand Port as a transformative project that will “reshape Iraq'shistorical geographical position.”
During a maritime tour in which he reviewed the key projects at Al-FawPort in Basra, Al-Sudani began his tour with the five berths. He then reviewedother projects, starting with the container yard and the wharf wall, which hasreached 100% completion. He also visited the submerged tunnel, which is 58.47%complete and is one of the most essential projects within the Development Roadinitiative.
The PM was briefed on the progress of the navigation channel for theGrand Port, which is now 77.41% complete. He concluded his visit by reviewingthe construction of the road connecting the Port to the highway, marking thestart of the strategic Development Road. This project has reached a 92.42%completion rate.
Minister of Transport Razzaq Muhaybis also spoke at the ceremony,stating, "Al-Faw Port and the Development Road are the gateway to economicgrowth in Iraq and the region."
Al-Faw Port: Beating Heart of the Development Road
Al-Faw Port is poised to play a crucial role in the Development Roadproject, according to Maitham Al-Safi, spokesperson for the Iraqi Ministry ofTransport. "The strategic port will be the lifeline and beating heart ofthe Development Road…It will allow Iraq to have direct access to the sea andbenefit from its waters," he said in an interview with Shafaq News Agency.
Al-Safi highlighted the project's extensive scope, which includes thedevelopment of several key infrastructure components. "There are prospectstied to this giant project, which consists of five other projects that representthe port’s infrastructure, most notably the five berths, which have beencompleted at 100%," he stated.
The road connecting Al-Faw Port to the city of Umm Qasr is nearlycomplete, with a 92% progress rate. The ministry spokesperson also emphasized theimportance of the submerged tunnel, describing it as an architectural marvel."The ten sections of the tunnel project have been immersed in the tunnelbasin in preparation for being moved to the Khor Al-Zubair Canal and placed intheir designated trench, thereby completing the connection of the road linkingthe port to Umm Qasr and then to Safwan," he explained.
Progress on other major components of the port is also well underway.The navigational channel is 77% complete, while the container yard has reached88%. The breakwater and port entrance projects are fully completed.
Moreover, Al-Safi emphasized the strategic significance of Al-Faw Port."The importance of the Port aligns with the anticipated benefits, as thisproject is designated for large and medium cargo loads…It will serve as a linkbetween Asia and Europe, as part of the larger Development Road project,"he said. "The port is one of the components of this project, whichincludes the railway and roadway, all representing the three main components ofthe Development Road."
The port's international importance is reflected in the number of visitsfrom foreign delegations. "There are field visits from Turkey to the port,as well as from specialized committees from advanced foreign countries withexpertise in port operations. Additionally, there are ongoing visits from Araband Asian delegations to observe the port’s progress," Al-Safi noted.
Looking forward, he stressed the port’s potential impact on Iraq’seconomy. "The port will be a key pillar in diversifying Iraq’soil-dependent rentier economy.”
Al-Safi concluded by outlining the port's future development plans,stating, "The port will be dedicated to future development projects,including the establishment of the largest industrial zone in the Middle Eastin alignment with global technological advancements…The port’s coastlines willalso be utilized for tourism and other purposes."
Achieving Iraq's Dream
Dr. Shukr Mahmoud Al-Amiri, Head of the Financial and AdministrativeCommittee in the Basra Provincial Council, underscored the significance of thefive completed berths at Al-Faw Port. "The receipt of these five berths isof strategic importance to Iraq and marks the beginning of achieving its dreamof having an independent port overlooking the Arabian Gulf, with a deep draftcapable of receiving giant ships," Al-Amiri said.
He explained that this phase, which includes five berths with a totallength of 1,750 meters, will be followed by the installation of necessaryequipment and the arrival of specialized companies to oversee operations.
Other ongoing works include the submerged tunnel, navigation channel,dredging, reclamation, and the container yard. "These projects arescheduled for completion by 2025, and by the end of next year, the port mayopen in its first phase to receive ships, operating with five berths," henoted.
Al-Amiri added that the Ministry of Transport could then continue withthe construction of the remaining berths. The port is set to have a total of 99berths, distributed over three phases, with full completion planned for 2038."Operations can begin with the five berths, with further support addedgradually," Al-Amiri confirmed.
Al-Faw Port spans 54,000 dunams, and the ongoing development is expectedto attract a diverse workforce across multiple sectors.
Artery of Iraq's Economy
Al-Faw Grand Port project is expected to create notable jobopportunities and play a central role in the country’s economy.
Al-Amiri affirmed that "the port is planned to create 200,000 jobopportunities if it operates at full capacity," adding that the BasraProvincial Council has agreed to prioritize Iraqi workers. However, foreignworkers will be allowed, but only if they are specialists, with general laborreserved for Iraqis.
In turn, Sabih al-Hashemi, head of the Iraqi Businessmen Association inBasra, called the port "an important economic milestone" and a vitaladdition to Iraq’s overall economic resources, describing it as "a vitalport that will serve as the artery of Iraq's economy."
Al-Hashemi also predicted that the port would generate at least 150,000job opportunities for Basra residents and people from other Iraqi provinces,including the Kurdistan Region. He expressed hope for "acceleratedcompletion and attention from the concerned authorities."
