Shafaq News/ Iraq’s Al-Faw Grand Port, a $4.9 billion mega-project on Al-Faw Peninsula in Basra, is poised to revolutionize the nation’s economy. Set to realize the country’s dream in 2025, the port will not only generate over 150,000 jobs but also become a driving force behind Iraq’s economic transformation. As a flagship element of the Development Road initiative, it promises to diversify the economy and reduce reliance on oil, ushering in a new era of opportunity for Basra and beyond.

About Al-Faw Grand Port

The foundation stone for Al-Faw Port was laid on April 5, 2010. This strategic project, with an estimated cost of approximately 4.6 billion euros (about $4.9 billion), is projected to have a capacity of 99 million tons annually, positioning it as one of the largest ports in the Gulf and the tenth largest worldwide.

Being one of the most significant projects within the Development Road initiative, the port has sparked substantial debate across Iraq, especially due to repeated delays in its completion. Members of Parliament have accused successive governments of making compromises with neighboring countries that ultimately slowed down the port's development to benefit competing regional ports. Additionally, the project suffered a major setback after the unexpected suicide of the technical director from South Korea's Daewoo Corporation, the company contracted to execute the project.

About Development Road Project

Iraq’s Development Road project, officially launched during Turkish President Tayyip Erdogan's visit to Baghdad in April, is set to become a cornerstone of regional trade and economic growth. Earlier, Iraqi Prime Minister Mohammed Shia Al-Sudani stated that the vital Road project "will transform Iraq from a landlocked country to an open one."

The project features a 1,275-kilometer (792-mile) rail and road network designed to streamline the movement of goods between Europe and the Gulf region. It is anticipated to significantly reduce trade costs between China and Europe, with energy playing a crucial role due to Iraq's substantial oil reserves.

Iraq holds approximately 10% of global oil reserves and contributes 5% of global production. This strategic advantage is expected to enhance the project'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 an electrified railway.

In addition to transforming regional trade dynamics, the Road Project is forecasted to create 100,000 jobs in its first phase and potentially up to one million jobs upon completion.

Iraq's Most Prominent Project

On September 14, Al-Sudani underscored the importance of increasing research and awareness about Al-Faw Port and the Development Road projects, and the opportunities they will bring. He stressed that these two projects are vital to Iraq's economic future, highlighting their role as “key pillars in expanding the non-oil economy.”

Earlier, the PM announced the completion of five berths, marking a major milestone 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 Korean company, Al-Sudani acknowledged the "significant challenges" his government faced in initiating the crucial Development Road project, describing Al-Faw Grand Port as a transformative project that will “reshape Iraq's historical geographical position.”

During a maritime tour in which he reviewed the key projects at Al-Faw Port in Basra, Al-Sudani began his tour with the five berths. He then reviewed other projects, starting with the container yard and the wharf wall, which has reached 100% completion. He also visited the submerged tunnel, which is 58.47% complete and is one of the most essential projects within the Development Road initiative.

The PM was briefed on the progress of the navigation channel for the Grand Port, which is now 77.41% complete. He concluded his visit by reviewing the construction of the road connecting the Port to the highway, marking the start 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 economic growth 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 Road project, according to Maitham Al-Safi, spokesperson for the Iraqi Ministry of Transport. "The strategic port will be the lifeline and beating heart of the Development Road…It will allow Iraq to have direct access to the sea and benefit from its waters," he said in an interview with Shafaq News Agency.

Al-Safi highlighted the project's extensive scope, which includes the development of several key infrastructure components. "There are prospects tied to this giant project, which consists of five other projects that represent the port’s infrastructure, most notably the five berths, which have been completed at 100%," he stated.

The road connecting Al-Faw Port to the city of Umm Qasr is nearly complete, with a 92% progress rate. The ministry spokesperson also emphasized the importance of the submerged tunnel, describing it as an architectural marvel. "The ten sections of the tunnel project have been immersed in the tunnel basin in preparation for being moved to the Khor Al-Zubair Canal and placed in their designated trench, thereby completing the connection of the road linking the 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 reached 88%. 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 this project is designated for large and medium cargo loads…It will serve as a link between Asia and Europe, as part of the larger Development Road project," he said. "The port is one of the components of this project, which includes the railway and roadway, all representing the three main components of the Development Road."

The port's international importance is reflected in the number of visits from foreign delegations. "There are field visits from Turkey to the port, as well as from specialized committees from advanced foreign countries with expertise in port operations. Additionally, there are ongoing visits from Arab and Asian delegations to observe the port’s progress," Al-Safi noted.

Looking forward, he stressed the port’s potential impact on Iraq’s economy. "The port will be a key pillar in diversifying Iraq’s oil-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 East in alignment with global technological advancements…The port’s coastlines will also be utilized for tourism and other purposes."

Achieving Iraq's Dream

Dr. Shukr Mahmoud Al-Amiri, Head of the Financial and Administrative Committee in the Basra Provincial Council, underscored the significance of the five completed berths at Al-Faw Port. "The receipt of these five berths is of strategic importance to Iraq and marks the beginning of achieving its dream of having an independent port overlooking the Arabian Gulf, with a deep draft capable of receiving giant ships," Al-Amiri said.

He explained that this phase, which includes five berths with a total length of 1,750 meters, will be followed by the installation of necessary equipment 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 are scheduled for completion by 2025, and by the end of next year, the port may open in its first phase to receive ships, operating with five berths," he noted.

Al-Amiri added that the Ministry of Transport could then continue with the construction of the remaining berths. The port is set to have a total of 99 berths, distributed over three phases, with full completion planned for 2038. "Operations can begin with the five berths, with further support added gradually," Al-Amiri confirmed.

Al-Faw Port spans 54,000 dunams, and the ongoing development is expected to attract a diverse workforce across multiple sectors.

Artery of Iraq's Economy

Al-Faw Grand Port project is expected to create notable job opportunities and play a central role in the country’s economy.

Al-Amiri affirmed that "the port is planned to create 200,000 job opportunities if it operates at full capacity," adding that the Basra Provincial Council has agreed to prioritize Iraqi workers. However, foreign workers will be allowed, but only if they are specialists, with general labor reserved for Iraqis.

In turn, Sabih al-Hashemi, head of the Iraqi Businessmen Association in Basra, called the port "an important economic milestone" and a vital addition to Iraq’s overall economic resources, describing it as "a vital port that will serve as the artery of Iraq's economy."

Al-Hashemi also predicted that the port would generate at least 150,000 job opportunities for Basra residents and people from other Iraqi provinces, including the Kurdistan Region. He expressed hope for "accelerated completion and attention from the concerned authorities."