The UK government’s export credit agency, UK Export Finance (UKEF), has guaranteed financing totaling €781 million, or £680 million, to support the development of a 286 km high-speed electric railway in southern Turkey.
On behalf of the Turkish Ministry of Transport, Rönesans Holding will complete building the Mersin-Adana-Gaziantep High-Speed Railway with funding from UKEF’s Buyer Credit Facility.
The agreement is anticipated to support the Prime Minister’s aim of expanding the UK economy by opening up new, multimillion-pound export contract opportunities for the infrastructure, engineering, and project management industries in the UK.
As one of the top ten largest construction companies in Europe, Rönesans Holding, plans to use the high-speed rail project to expand its contacts with the UK supply chain, this portends significant prospects for UK exporters in the future.
The trade relationship between the UK and Turkey is improving. The UK exported goods to Turkey worth £8.5 billion last year, and this week we unveiled plans for a revised trade agreement that will increase imports and exports between our two nations.
This success story is enhanced by UK Export Finance’s support for this game-changing high-speed rail system. This agreement demonstrates that the UK, which is home to the first railway system in history, is still moving forward with its exportation of railway innovation and expertise.
In line with the government’s priorities, Rönesans Holding has already engaged with UK suppliers to negotiate contracts for electronic infrastructure, ESG consultancy services, catenary, and mechanical components. UKEF’s support, which was granted on the condition that UK exporters supply to the project, will support ongoing economic growth in the UK.
In order to secure this historic agreement for Turkish rail infrastructure, UKEF collaborated with J.P. Morgan, ING Bank, and BNP Paribas, who supplied the loan, as well as SACE and OeKB, the Italian and Austrian export credit agencies, which provided reinsurance.
We’re excited to be collaborating with UKEF, JP Morgan, ING, and BNP to close a deal that will allow for a historic change in the way Turkish rail links and the high-speed railway project are built.
The region’s industrial connectivity and trade will be greatly improved by upgrading the current railway line to a high quality railway line, which will actively reduce negative environmental impact while providing a lower-carbon travel option. The growth of Turkey’s national infrastructure and environmental goals are very important to Rönesans Holding.
Our successful relationship with British Exporters has enabled us to acquire €781 million in funding for the revolutionary high-speed electrified railway in southern Turkey, greatly enhancing the trade in goods and services between Turkey and the UK and opening the door to innovative international alliances.
The goal of this initiative is to promote more environmentally friendly transportation in the area while easing traffic congestion on the region’s highways. We are thrilled to be tasked with providing the financing for this significant project while assisting UK exporters in offering goods, services, and noteworthy technical know-how.
The electrified line will offer a less-carbon-intensive alternative to present routes between Mersin and Gaziantep by replacing the existing railway, which depends on diesel locomotives. According to project estimates, the finished route will save CO2 emissions by 157,000 tonnes alone in the first year.
By building a train link longer than the distance between Cardiff and London, the UKEF-backed project will also directly support Turkey’s goal of expanding high-speed rail coverage to 10,000 km.
This transit link, which can accommodate trains moving up to 200 km/h, represents a significant improvement in regional infrastructure and growth. With the high-speed rail, it will take four hours less to get from Gaziantep to Mersin, the second-largest container port in the nation and a bustling city of more than one million people, via the regional cities of Adana and Osmaniye.
Among the major, highly industrialised cities in the area with a rich cultural heritage are Mersin, Adana, and Gaziantep. The completion of this project will result in lower transportation costs, shorter travel times between Mersin and Gaziantep, and improved rail connectivity.
This initiative is essential for integrating the economy, society, and environment in this regard. We are particularly appreciative of our trading partner UKEF’s contribution to this significant initiative, which will broaden the country’s rail infrastructure.
The project’s primary goals are to increase rail connections and develop a viable alternative transport system in Turkey. We are eager to carry on our productive partnership with fresh initiatives aimed at advancing Türkiye.
The 7.8 magnitude earthquake that rocked Turkey in February 2023 was close to the epicentre, which is why Gaziantep, the railway’s eastern terminus, was nearby. The UKEF-supported project to complete this railway will also aid in the restoration of Gaziantep, Osmaniye, and other severely affected southern Turkish regions.