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British Steel wins contract for high-speed electric railway in Turkey

(Posted on 15/05/24)

British Steel has won a multi-million-pound contract to supply rail for a new high-speed electric railway in Turkey. The manufacturer will deliver tens of thousands of tonnes of track for the project connecting Mersin with the cities of Adana, Osmaniye and Gaziantep in southern Turkey.

It will help create a lower-emission transport link between Turkey’s second-largest container port and inland cities more than 150 miles away, with the project expected to reduce CO2 emissions by more than 150,000 tonnes a year. British Steel President and CEO Xijun Cao said: “We’re delighted British Steel has been awarded this contract, and to be involved in such an important project. Not only will electrification greatly enhance the transport infrastructure in southern Turkey, it will also deliver significant environmental benefits. “We pride ourselves on providing solutions to the challenges our customers face and look forward to supplying this project with the world-leading rail synonymous with the British Steel name.”

Pivotal to the project is the backing of UK Export Finance (UKEF), the UK government’s export credit agency, which has underwritten €781-million of financing (£680-million) to support construction of the 286km railway. 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 with British Steel one of the key suppliers. Erman Il?cak, President of Rönesans Holding, said: “By upgrading the existing railway line to a high standard railway line, we will be actively reducing negative environmental impact while offering a lower[1]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.

“Our fruitful collaboration with British exporters has secured €781-million in financing for the transformative high-speed electrified railway in southern Turkey, adding tremendous value to the cooperation between Turkey and UK exports and services while paving the way for exciting global partnerships.” British Steel Commercial Director - Rail, Craig Harvey, said: “This is the start of what we expect to be a new unique partnership between British Steel, UKEF and international contractors. The ability to combine world-leading quality rail with a world-leading finance solution for supply into global markets and networks is an unparalleled supply chain solution. Looking forward, we are very excited about what this will achieve.” Page 2 of 2 The first shipments of rail will be transported from British Steel to Turkey in the second quarter of 2024. It is manufactured in Scunthorpe and is 60E1 in grade R260, each at 36 metres in length.

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