Iraq has kicked off a much-delayed project to build a rail link with Iran which official said would largely boost trade and joint projects.

Iraqi Prime Minister Mohammed Al-Sudani and Iranian Vice President Mohammed Mokhber laid the foundation stones for the project in the Southern Iraqi Basra city on Saturday.

“Iraq considers this vital project as part of the $17-billion Development Road project, which involves the construction of a rail and road link with Turkey,” Iraqi government spokesman Bassim Al-Awadi said, quoted by the official Iraqi news agency on Monday.

He said Baghdad decided to push ahead with the rail link with Iran as part of a post-war strategy to rebuild its infrastructure after “decades of hesitation and inaction in undertaking joint projects with neighbouring countries.”

Awadi said he believes the project will “largely boost trade and projects, support Iraq’s economic infrastructure and make it more capable to collaborate with its neighbours.”

The 36-km railway will link Basra Governorate with the Iranian border town of Shalamcheh and will have a capacity to transport three million passengers per year.

Officials said in early August that Iraq has allocated 215 billion Iraqi dinars ($148 million) for its part of the project.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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