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There is huge scope for the improvement of Iraqs rail network, which in 2004 was running at just 10 per cent of its capacity. The situation has improved markedly since then. The 310-mile Baghdad-Basra line has started carrying passengers again, thanks to improvements in security. The Transport Ministry plans to reopen the western minerals railway by the end of 2009. The line is a strategic link between Baghdad and a number of major industrial sites. It runs from Akashat near the Jordanian border to the main AlQaim (Syrian border) Baghdad line and connects to several fertiliser and concrete plants in Anbar province. The Ministry is assessing the safety of a key bridge which has been rebuilt following bomb damage. This line is also the first stage of a proposed rail link between the Bayji and Anbar oil refineries. The first major rail construction project to take place in Iraq since 2003 will be a 285km railway line around Baghdad, connected to the countrys main rail network. The $5.6 billion project will take six years to complete. The Ministry of Transport will invite large international companies to participate in this project, whose objective is to allow transit freight cargoes to by-pass Baghdad, freeing up transport capacity within the city, improving safety and reducing environmental damage. The project also includes the construction of freight yards and specialized storage facilities outside the city. At the end of March, French, German and American companies presented offers the Baghdad city authority to build a city metro. The government has said that it will allocated 2.1 billion from the state budget to finance the 41 station underground network. Austrian and Russian companies have proposed a scheme to the Kurdistan Regional Government for the construction of a rail network to link the three provinces within the Iraqi Kurdistan region. Upgrades are planned for railway lines between Basra and Umm Qasar and between Baghdad and Mosul in the north and Rabia, near the Syrian border. New railway lines have also been proposed from Bayji to Aleppo in Syria and from Mosul to Turkey. These lines could eventually form part of the long term programme to link most GCC countries by rail and to connect the Gulf railway network to Turkey, Jordan, Iran and the Causasus via Iraq.
Better security and growing economic activity mean the volume of freight and frequency of travel by individuals is increasing rapidly. Every part of Iraqs transport system requires investment as accelerating demand for air, sea port, road and rail freight services puts mounting strain on existing capacities. Transport, whether of people or goods, was one of the sectors which suffered most under the conditions of violence and instability which characterised the years immediately after the fall of the Saddam regime. But now it is a sector of great opportunities. With a budget of just 313 million for the coming year, Transport Minister Amer Abdul-Jabbar Ismail says he is eager to involve private investors. We dont have enough money for our projects, so we will have to go to outside investors for funding, he told Agence France Presse in January this year. The Ministry of Transport is responsible for the management, planning and policy of the countrys transport system, except for highways which are the responsibility of the Ministry of Construction and Housing. There are a number of state organisations which manage individual parts of this system. These include: Iraqi Civil Aviation Authority General Company of Iraqi Ports General Company of Iraqi Railways
State Commission for Roads and Bridges Priority developments in the sector include Improving the facilities at the main airports including at Baghdad and Basra Building a new deepwater port at El Faw Revamping the railway network Upgrading the countrys roads
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We need international companies to come and help us develop and upgrade our transport infrastructure. The opportunities are here, and we will do what we can to help our partners succeed. Amer Abdul-Jabbar Ismail, Transport Minister
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Road freight
There are extensive opportunities available to the private sector in the road transport sector. Most road freight is already carried out by private companies. The Ministry of Transport is exploring the potential for setting up rapid transit bus network, which would include dedicated bus lanes in major cities. Repairs to both roads and bridges which were damaged in the 2003 conflict have been extensive and are ongoing.
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Contacts: For general information about investment opportunities in Iraq or the investment process, please visit the Iraqi National Investment Commission website at www.investpromo.gov.iq or email at info@investpromo.gov.iq.
For information about specific sectors and opportunities, or to arrange a visit, please contact the National Investment Commission through one of the contacts below. Telephone (English): + 964 7901 970 107 Telephone (Arabic): + 964 7704 435 146 Email (English): m-hussein@investpromo.gov.iq Email (Arabic): a.alwan@investpromo.gov.iq
Al-Muthanna
Basra
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Basra
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Al-Faw
Iraqi Airways is overhauling its ageing fleet and has already placed substantial orders with international companies worth 3.8 billion. In March 2008, the Finance Ministry ordered 40 aircraft from
Boeing on behalf of Iraqi Airways. The first planes will be delivered in 2013. The Ministry will own the aircraft to prevent Kuwait Airways seizing them in compensation for damages incurred in the 1990 invasion.
In 2008 Iraqi Airways also ordered ten new aircraft from Canadas Bombadier. The first CRL900 was delivered to Erbil in October 2008. Transport minister Amir AbdulJabbar is considering the lease of civilian aircraft from Turkey.
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Seaports
Iraq has five ports on its short Gulf coastline. Two of the main sea ports Khor az-Zubayr and Umm Qasr are located on the Khor az-Zubayr channel, south of Basra city. Al-Faw is located at the mouth of the Shat alArab. There are also two river ports on this waterway which runs inland to the city.
Baghdad International Airport
On 24 March United Nations Development Programme (UNDP) officials presented the Iraq Civil Aviation Authority (ICAA) with the inaugural draft of a Civil Aviation Master Plan. This plan for the development of Iraqs airports and civil aviation may include outsourcing airport management to private operators.
the Ministry of Transport is currently evaluating different partnership proposals to develop and enhance airport traffic and services. 11 airlines are already using the airport.
Austrian Airlines now provides scheduled service to both Erbil and Sulaymaniyah airports.
Others
Emirati Joptir and Iraqi Airways flew the first scheduled international civilian flight since 1991 to Mosul airport from Dubai on 27 February. The airport facilitated travel for Iraqi pilgrims to Saudi Arabia during the 2007 Hajj season. Iraqi Airways currently provides limited flights to Baghdad. The mayor of Diwaniya has invited expressions of interest from international companies to build an airport to the east of the city, which is 180km south of Baghdad at a cost of approximately 175 million.
Record numbers of vessels have been docking at Iraqs ports in recent months, according to the stateowned General Company for Ports of Iraq (GCPI), which owns and runs all the countrys ports. Shipping traffic rose 46 per cent during February. 100 vessels docked during the month compared to the average of 75. The increase in traffic follows a successful campaign by the Iraqi security forces in 2008 to regain control of Umm Qasr, Iraqs only deep-sea commercial port, from local militias. All the port facilities suffer from ageing infrastructure and lack of storage facilities and as a result operate well below their design capacities
cent of its 10 million t/yr capacity. It has 22 operational berths including two roll-on roll-off, one grain silo and two container berths. The remaining 17 berths are all general break cargos. Additionally, there is a sugar berth operated by the Ministry of Industry & Minerals. The container berths have a stated capacity of 15 containers per hour or 120 containers per 8-hour shift. In November 2008 GCIP invited international shipping companies to tender for three-year contracts to manage two container berths at Umm Qasr. An international operator may be brought in to manage the lessdeveloped South Port area with general cargo, bulk, and container facilities under a Long Term Concessionary Agreement. A separate tender could then be used to select a management company to improve the operation of the relatively well-developed North Port area with container, general cargo, and passenger operations, under a shorter contract.
Airlines
An increasing number of airlines now fly to Iraq and their number will increase. The transport minister has said that airlines that want to open routes to Iraq will be given immediate approvals. Iraqi Airways, the national flag carrier is rapidly expanding it scope of operations. Air France-KLM has agreed to help it set up commercial flights to Europe and other international destination. The national flag carrier is planning to add scheduled flights to Bahrain, Germany, India and Qatar.
Warehousing
New warehousing capacity is needed at all ports to handle forecast increases in cargo. Additional crane and offloading machinery is also required, while much of the existing associated infrastructure needs repair and refurbishment.
Umm Qasr
In the past three years Umm Qasr has operated at an average of 67 per