Istanbul Canal was called by the Turks “the project of the era” and “the greatest work in the history of the Republic of Turkey”.
This is the Istanbul Canal project, which Turkish President Recep Tayyip Erdogan announced when he was prime minister in 2011 as one of his goals for the new Turkey in 2023.
Authorities are in talks with interested companies from the Netherlands, Belgium, Russia, and China to award work on the canal, Karaismailoglu said, without elaborating.
The Istanbul Canal project could be worth $ 25 billion, including $10 billion for land development on both sides of the canal and $15 billion for the cost of building the canal.
The new Istanbul Canal is scheduled for completion in 2027.
What is the Istanbul Canal Project?
The Istanbul Canal is an artificial waterway between the Black Sea and the Sea of Marmara to facilitate shipping traffic in the Bosporus Strait.
The Turkish government intends to establish the Istanbul Canal to reduce the movement of ships in the Bosphorus Strait, as well as remove an accidental building on the route.
The Istanbul Canal project is one of the largest projects being built in the 21st century not only in Turkey but around the world.
The new Istanbul channel and its importance for the investment sector in Turkey.
The construction phase of the Istanbul Canal project is expected to take about 5 years and the minimum economic life will be 100 years.
Within the project, which will be about 45 kilometers long, 7 bridges, 2 railroad lines, and 2 metro lines will be built. The canal is expected to allow the passage of 160 ships or tankers annually.
This means that with these specifications, the channel will form a waterway parallel to the famous strait of the Bosphorus, which means that the city of Istanbul will become a world trade center.
What is the purpose of the Istanbul Canal project?
The Bosphorus, through which about 43,000 ships pass annually, is a natural waterway with the narrowest point of 698 meters. The increase in shipping traffic, the increase in the size of ships due to technological development, and especially the increase in the transit of ships (tankers) carrying fuel and other hazardous/toxic substances, pose a great burden and threat to Istanbul.
On the other hand, the waiting time for large ships is about 14.5 hours due to the one-way rule that applies in the Bosphorus for ship safety reasons. Depending on the weather conditions, this waiting time can sometimes last up to 4 days.
What is the economic importance of the Istanbul Canal?
Because the Canal Istanbul project is not subject to the Montreux Convention, it will cost an average of $5.5 per ton, just like the Suez Canal.
While ships of up to 150 light tons will be able to pass through the Suez Canal, the Istanbul Canal will be suitable for ships of 300,000 tons.
Despite the high cost of the canal project, the Istanbul Canal, which will be 193 kilometers long and 148 kilometers shorter than the Suez Canal, will increase its annual revenues to $8 billion when it is fully operational, and this means that these profits will cover the costs of the Istanbul Canal project.
These profits will come from the passage of merchant ships, especially giant ships, and from the construction of facilities on the edge of the canal.
The project will create more than 1.5 million new jobs. Where the canal will attract large investment projects. It is expected that 50 million foreign visitors will visit Istanbul, generating 20-30 billion dollars in tourism revenue annually.
In addition, the main benefits are:
- Increasing the safety of maritime navigation and increasing traffic through the Black Sea.
- Reducing pressure from shipping in the Bosphorus Strait.
- Reducing environmental risks in the Bosphorus Strait, including the passage of oil tankers that threaten marine life.
- Implementing the Turkish government’s vision for 2023 and 2053, which places Turkey among the 10 most powerful economies in the world.
What is the importance of Canal Istanbul in investment?
The importance of the Istanbul Canal in the field of investment, especially real estate investment, lies in its excellent geographical location, which means that it offers new projects and new opportunities for those who want to invest in Turkey, especially when buying land or apartments.
Property prices have increased in a number of areas, especially in neighborhoods such as Kayabaşı Basin Express, and other neighborhoods in the region are also expected to increase in the near future.
The Kucukcekmece district also saw a similar increase in property prices, both for rent and for sale.
The most important point of the Istanbul Canal project is the construction of new real estate.
There will be a completely new area in Istanbul, so it is important to know the investment opportunities there, especially the investment opportunities in real estate.
Other important benefits of the canal project:
- Its proximity to the corridor connecting Istanbul Airport to the city center. This provides quick access and shortens many roads, which will result in an investment revolution in the areas near the canal.
- The proximity to three artificial islands will be created from the ruins of the canal, one of which will be an opera house.
- The project will trigger a great trade and tourism movement, and that means new hotels, new restaurants, and new job opportunities.
- The project will establish its own railroad bridge, which will facilitate transportation and navigation between the outskirts of the city.
There is a canal in Istanbul, but it’s not very big. It runs from the Golden Horn River on the west side of the city to the Bosphorus on the east side.
Edited by: Nirvana Property