Photo: EkNUK Export Finance (UKEF), the UK Government’s export credit agency, has underwritten 781 million euros of financing to support construction of a 286km high-speed electric railway in southern Turkey. With financing provided through UKEF’s Buyer Credit Facility, Rönesans Holding will finish construction of the Mersin-Adana-Gaziantep High Speed Railway on behalf of the Turkish Ministry of Transport.
The deal is expected to create new, multi-million-pound export contract opportunities for the UK’s infrastructure, engineering and project management sectors. This signals key future opportunities for UK exporters, with Rönesans Holding – one of Europe’s 10 largest construction companies – intending to use the high-speed rail project to build its wider relationships with the UK supply chain.
Lord Offord, Minister for Exports, said: “The UK-Turkey trading relationship is going from strength to strength. Last year, UK exports to Turkey reached £8.5 billion, and this week we announced plans for an updated trade deal that will further boost exports and imports between our countries.
“UKEF’s backing for this transformative high-speed railway adds to this success story. This deal shows that the UK, home to the world’s first railway system, still moves full steam ahead with its export of railroad innovation and expertise.”
Continued economic growthUKEF’s backing – which has been given on the condition that UK exporters supply to the project – will support continued economic growth in the UK, 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 worked in partnership with JP Morgan, ING Bank and BNP Paribas, who provided the loan, as well as SACE and OeKB – the Italian and Austrian export credit agencies providing reinsurance – to secure this landmark deal for Turkish rail infrastructure.
Dr Erman Ilıcak, president of Rönesans Holding, said: “We are thrilled to be working with UKEF, JP Morgan, ING and BNP to secure a deal that will enable a landmark shift in the Turkish construction of rail links and the high-speed railway project. By upgrading the existing railway line to a high standard railway line, we will be actively reducing negative environmental impact while offering a lower-carbon travel alternative and significantly enhancing the region’s industrial connectivity and trade. Rönesans Holding takes immense pride in contributing to Turkey’s national environmental goals and infrastructure advancement.”
In replacing the current railway, which relies on diesel locomotives, the electrified line will provide a lower-carbon alternative to existing routes between Mersin and Gaziantep. Project forecasts suggest that the completed route will save 157,000 tonnes in CO
2e emissions in its first year alone.
The UKEF-backed project will also contribute directly to Turkey’s objective of increasing high-speed railway coverage to 10,000km, by creating a rail link greater than the distance between Cardiff and London. Able to carry trains travelling up to 200km/hr, this transport link is a major step forwards for regional infrastructure and growth. The high-speed railway will reduce the travel time from Gaziantep – via regional cities Adana and Osmaniye – to Mersin by four hours; Mersin is the second largest container port in the country and a thriving city of over 1 million people.
Gaziantep, the railway’s eastern terminus, was near the epicentre of the 7.8 magnitude earthquake which struck Turkey in February 2023. The UKEF-backed project for completing this railway will also contribute to reconstruction in Gaziantep, Osmaniye and other areas of southern Turkey severely damaged in the disaster.