Iraq’s Al Faw Port and “Dry Canal” to Rewrite the Global Trade Map

Iraq’s Al Faw peninsula, a relatively small yet strategically significant stretch of coastline overlooking the Persian Gulf, is emerging as the centrepiece of an ambitious $17 billion infrastructure initiative. 

Despite its limited access to open waters, this modest region is determined to become a transformative player in global trade. 

The Iraqi government’s vision centres on two monumental projects: the Al Faw Grand Port, designed to be one of the largest deep-water ports in the world, and the Iraq Development Road, nicknamed the “dry canal,” a vast overland trade corridor connecting the Gulf to Europe. 

Together, these projects aim to establish Iraq as a vital link in global supply chains, challenging the established dominance of existing trade routes.

The significance of this undertaking cannot be overstated. For decades, the Suez Canal has been the heart of global maritime commerce, providing a crucial pathway for goods travelling between Europe, Asia, and beyond. 

However, the vulnerabilities of this single route have become increasingly apparent. Congestion, overcapacity, and the persistent threat of piracy in the Red Sea highlight the risks of relying too heavily on the Suez. 

The 2021 incident involving the Ever Given - where the vessel became lodged across the canal, blocking traffic for nearly a week - exposed the fragility of global logistics systems that rely too heavily on external factors. 

The shipping industry’s search for alternative routes has intensified, and Iraq's proposed “dry canal” promises to offer a viable solution, potentially bypassing the risks and bottlenecks associated with the Suez Canal.

At the heart of Iraq’s aspirations is the Al Faw Grand Port, a deep-water facility under construction on the southern tip of the Al Faw peninsula. This engineering marvel is a big part of Iraq’s strategy to modernise its maritime infrastructure and assert its presence on the global stage. 

When completed, the port is expected to accommodate some of the largest container ships in operation today, including neo-panamax vessels capable of carrying over 20,000 twenty-foot equivalent units (TEUs). This would place it among the world’s most significant ports, both in scale and capacity.

Building the Al Faw Grand Port has not been without its challenges. Iraq’s limited resources, coupled with the technical demands of such an ambitious undertaking, have required innovative engineering solutions. 

One notable example is the use of concrete mattresses to mitigate “port scour” - a phenomenon where powerful currents erode the seabed around port structures. These mattresses not only accelerate construction but also offer significant material savings compared to traditional rock armour.

A defining feature of the port is its breakwater, which, at 14 kilometres, is the longest of its kind in the world. Constructed using CORE-LOC units, the breakwater is designed to withstand the harsh conditions of the Persian Gulf, including sedimentation and strong currents. 

Plans for the port’s future include additional container terminals, artificial islands, and expanded cargo-handling capabilities, all of which aim to position it as a critical hub for international trade.

Complementing the port is the Iraq Development Road, a 2,000-kilometre trade corridor that promises to connect Al Faw to Europe via Turkey. This “dry canal” incorporates both a motorway and a high-speed railway, offering a cost-effective and time-efficient alternative to traditional maritime routes. 

By significantly reducing the transit time for goods travelling between the Gulf and European markets, the Iraq Development Road has the potential to attract significant volumes of trade.

However, the challenges facing these projects are substantial. While the Al Faw Grand Port and the Iraq Development Road hold the promise of transforming global trade, neither is expected to fully replace the Suez Canal. 

In addition to this, rail freight - while faster in some respects - remains more expensive and less efficient than maritime transport for handling high cargo volumes. When compared to the Suez Canal’s current capacity to process over 1.3 billion tonnes of cargo annually, the capabilities of Iraq’s emerging infrastructure are dwarfed.

Security concerns within Iraq also pose significant risks to the long-term viability of these initiatives. Political instability, corruption, and the threat of terrorism continue to challenge the nation’s ability to attract foreign investment and maintain the safety of its infrastructure. These issues must be addressed to ensure the success of the Al Faw Grand Port and the Iraq Development Road.

Nevertheless, the potential rewards are immense. By capitalising on its strategic location and investing in world-class infrastructure, Iraq has the opportunity to reshape the global shipping industry. 

The Al Faw Grand Port and the Iraq Development Road represent a bold gamble on the nation’s future, offering the promise of economic revitalisation and increased regional influence.

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