Türkiye’s first privately-operated international freight train began its inaugural journey on Friday, a significant step forward in the liberalization of the country’s railways and boosting its position as a critical logistics hub between Europe and Asia.

The new service is operated by Pacific Eurasia, a private Turkish company, which has committed to running 600 trains annually, carrying 750,000 tons of export goods valued at approximately 600 million euros (about $651 million) – equivalent to the freight capacity of 22,000 trucks.

During a ceremonial send-off at Halkalı station in Istanbul, Transport and Infrastructure Minister Abdulkadir Uraloğlu highlighted the importance of the development in both international trade and Türkiye’s efforts to modernize its rail network.

"We are excited to see Pacific Eurasia become the first private operator of international rail freight," Uraloğlu said. "This route between Istanbul and Budapest will enhance our export capabilities and further cement Türkiye’s role as a bridge between Asia and Europe."

The new freight train will travel 1,549 kilometers (962.24 miles), crossing through Türkiye, Bulgaria, Romania and Hungary, and is expected to complete the journey in about four days.

That trip will include 278 kilometers in Türkiye, 406 kilometers in Bulgaria, 634 kilometers in Romania and 231 kilometers in Hungary.

Rail liberalization and expansion

Minister Uraloğlu pointed to the challenges faced in liberalizing Türkiye’s railway sector, which for decades was dominated by state-owned operators.

He noted that Pacific Eurasia, now the country's third licensed rail operator, serves as a milestone in the country's rail development. The liberalization, Uraloğlu said, is designed to promote competition and encourage investment in Türkiye’s railway sector.

The government has undertaken significant rail expansion projects over the past two decades.

Since 2003, Türkiye has extended its rail network by nearly 3,000 kilometers, bringing the total length to 13,919 kilometers.

Uraloğlu emphasized the government’s vision of railways as a strategic pillar of Türkiye’s future economy, citing the Baku-Tbilisi-Kars Railway (BTK) as a key component of the Middle Corridor strategy to link Asia and Europe.

"We are prioritizing railways as a state policy," Uraloğlu said. "Our vision is to create the shortest, safest, and most economical rail corridor between the two continents."

Growing role of rail in trade

The inauguration of the private freight train follows the successful operation of the BTK, which connects Türkiye with Georgia, Azerbaijan and beyond into Central Asia and China.

Since its opening, over 1.5 million tons of cargo have been transported on the BTK line, which has drastically reduced transportation times for goods traveling from China to Europe.

"We believe this volume will increase much further in the coming period," said Uraloğlu.

As global trade routes shift amid supply chain disruptions and geopolitical uncertainties, Türkiye’s strategic location and expanding rail network are viewed as a competitive advantage.

In 2023 alone, over 9,000 train journeys were made between China and Europe, said Uraloğlu, with Türkiye playing an increasingly important role as a transit country.

Future ambitions

Türkiye’s plans for the railway sector extend well beyond the launch of its first private international freight train.

By 2028, the government aims to expand the rail network to 17,287 kilometers, and by 2053, it plans to reach 28,590 kilometers, said Uraloğlu.

The ambitious expansion plan includes upgrading existing lines, building high-speed rail routes, and increasing the share of freight transported by rail from 5% to 22%.

"Our goal is to raise the volume of goods transported by rail from 32 million tons today to 448 million tons," Uraloğlu said.

In particular, the government has high hopes for the Yavuz Sultan Selim Bridge rail line, an important part of the planned Development Road Project, a multibillion-dollar regional transportation project designed to ease the movement of goods from Asia to Europe.

Unveiled last year, the project is designed to facilitate the transport of goods from the Gulf to Europe via the Grand Faw Port in Basra in southern Iraq. The port would be linked to Türkiye and subsequently to Europe through an extensive network of railways and highways.

Uraloğlu reported strong international interest from financial institutions like the World Bank, which is expected to back the Yavuz Sultan Selim Bridge rail line project.

Construction on the new line is slated to begin by early 2025, the minister noted.