Shantel
Key Takeaways:
- Rönesans Holding announces a groundbreaking 286km electric railway network in southern Turkiye, significantly enhancing international trade relations with the UK and advancing regional economic growth.
- The high-speed railway will reduce travel time between key cities by 67%, creating a substantial economic boost.
- Financial backing includes £680m of underwritten funding from UK Export Finance (UKEF), facilitating multimillion-pound export contract opportunities.
- The project exemplifies the company’s unwavering commitment to environmental sustainability and economic progress.
About Rönesans Holding:
Founded 30 years ago and headquartered in Ankara, Rönesans Holding is the 24th largest international contracting company globally and the 8th largest in Europe. The company operates in over 30 countries, primarily in Europe, Central Asia, the Middle East, and Africa. Specializing in construction, real estate development, energy, healthcare, and industrial facilities, Rönesans is a confluence of resilience, growth, and innovation with an emphasis on sustainability and social development. The company is a signatory to the UN Global Compact since 2015 and the UN Women’s Empowerment Principles since 2016.
A Revolution in Connectivity
The newly announced 286km electric railway is a monumental development for southern Turkiye. Set to operate at speeds of up to 200 km/h, this railway will cut travel time between Gaziantep and Mersin, a key container port, from six hours to two. The implications are colossal: faster, more efficient travel will facilitate commerce, ease the movement of goods and people, and stimulate regional economies.
“This railway line is a hugely exciting development for southern Turkiye and will also see Rönesans strengthen its relationships with key UK suppliers,” says Dr. Erman Ilıcak, President of Rönesans Holding. “This truly collaborative project will not only enhance our relationship with UK exporters, it will also revolutionise rail links in Turkiye, significantly enhancing the region’s industrial connectivity and trade while actively reducing negative environmental impact.”
Financial Backing and International Collaboration
The electric railway project has secured €781m (£680m) of funding from UK Export Finance, a UK government export credit agency. The remaining balance of the €923 million total project financing comes from other global financial institutions, including JP Morgan, ING, and BNP Paribas. This arrangement opens the door for further collaborations between Rönesans and UK suppliers, especially in the realms of signalling equipment, ESG consultancy services, and mechanical components.
Sustainability First
Beyond the immediate economic implications, the railway will be a linchpin in Turkiye’s efforts to achieve its environmental goals. By replacing the current diesel locomotive-operated railway with an electric alternative, the project will save an estimated 157,000 tonnes of CO2e emissions in the first year alone. The railway will be a model for sustainable transport, reducing highway congestion and accidents, and promoting a greener transportation ecosystem.
A Catalyst for Disaster Recovery
The project gains added significance in the wake of the twin earthquakes that struck southern Turkiye in February 2023. By contributing to the rebuilding of affected areas like Gaziantep and Osmaniye, the railway serves a dual purpose: facilitating economic growth and aiding in disaster recovery.
Dr. Erman Ilıcak emphasizes the project’s importance in the context of Rönesans Holding’s ongoing disaster relief efforts. The company, in collaboration with organizations like UNICEF and UNFPA, is committed to aiding the areas and people affected by the natural calamity.
Final Thoughts
With this landmark project, Rönesans Holding cements its position as a pioneer in fostering sustainable and innovative transportation solutions. The 286km electric railway will not only be a game-changer for Turkiye but will also set a global example of how sustainable infrastructure can coexist with economic prosperity and social responsibility. It is a testament to Rönesans Holding’s commitment to environmental stewardship and economic progress—a balance that every global enterprise should strive to achieve.
