Iran and Turkey Announce $1.6 Billion Railway Corridor to Boost Asia-Europe Trade

Historic Agreement Reached in Tehran

In a significant move to bolster regional trade and connectivity, Iran and Turkey announced on November 30, 2025, their agreement to construct a new railway corridor. The project, valued at approximately USD 1.6 billion, will establish a vital link between the two nations, aiming to enhance railway corridors connecting Asia and Europe. The announcement followed a joint press conference in Tehran featuring Iranian Foreign Minister Abbas Araghchi and his Turkish counterpart, Hakan Fidan.

Project Scope and Timeline

The planned railway line, known as the Marand–Cheshmeh Soraya transit line, will cover a distance of approximately 200 kilometers (120 miles). It will extend from Iran's Marand region towards Turkey's Aralik border region. Iranian authorities anticipate the construction phase to last between three to four years. This ambitious infrastructure development is considered one of Iran's most significant regional railway investments in recent decades.

Reviving the Silk Road for Modern Trade

The new railway corridor is poised to play a crucial role in transforming the southern section of the historic Silk Road into an 'all-rail corridor.' Iranian Transport Minister Farzaneh Sadegh emphasized that this infrastructure will ensure the continuity of the network between China and Europe. She stated that the project would enable 'fast and cheap transport of all types of cargo with minimal stops,' positioning Iran as a key transit hub in Eurasian networks. The initiative aligns with China's broader Belt and Road Initiative, seeking to enhance global trade connectivity through major infrastructure projects.

Economic and Geopolitical Implications

The agreement underscores both Iran's and Turkey's commitment to expanding infrastructure and trade ties, particularly as Iran seeks to revitalize its economy amidst international sanctions. The new line is expected to facilitate the transport of containers from Asia and boost regional exports, addressing current limitations caused by fragmented infrastructure and border procedures. This strategic rail link provides an alternative to maritime routes, strengthening a vital East–West corridor and enhancing logistical resilience across Eurasia.