Daewoo Engineering completes $440m Iraq highway linking Middle East to Europe

Daewoo Engineering & Construction said Wednesday it has completed construction of a 62-kilometer highway connecting the new Al-Faw Port in southern Iraq with the port city of Umm Qasr. The Iraq Port Authority, the project's client, issued the company a final completion certificate, cementing its standing as a global infrastructure contractor.

The $440 million design-build project was carried out solely by Daewoo Engineering & Construction. Construction ran for 45 months from August 2021 to May 2025, followed by roughly a year of defect-liability work.

The road consists of a four-lane expressway, two bridges, one interchange and three roundabouts. It forms the primary logistics corridor between Al-Faw Port and Umm Qasr and serves as the first segment of the Development Road, a national strategic initiative pursued by the Iraqi government.

The highway is expected to become a critical piece of an international logistics network stretching through Turkey to Europe, and is regarded as core infrastructure for Iraq's ambition to develop into a Middle East-Europe logistics hub. With the project's completion, Daewoo Engineering & Construction has reinforced its position as the lead partner in Al-Faw Port's development, having previously delivered the world's longest breakwater and a submerged tunnel at the same site.

The project presented significant technical challenges. Most of the route runs over soft ground averaging 20 meters deep, requiring the company to deploy construction methods optimized for weak-soil conditions, precision monitoring systems and back-analysis techniques based on field measurement data to keep differential settlement under control — achieving both cost efficiency and structural stability.

For major bridge spans crossing a railway and the expressway, the company used 50-meter long-span prestressed concrete girders. High-performance pavement systems with superior strength and durability were applied across the road surface to withstand the repeated loads of heavy freight vehicles.

The project faced persistent difficulties, including global supply chain disruptions caused by the COVID-19 pandemic and logistics delays and border restrictions stemming from armed conflict in neighboring countries. Daewoo Engineering & Construction minimized schedule setbacks by securing key materials in advance, expanding on-site storage, and deploying overseas skilled workers and its own equipment. The company performed most critical work directly rather than through subcontractors, meeting both quality and schedule targets and completing the project as originally planned. Stable site management and continued risk management through the defect-liability period ultimately secured the final completion certificate.

Daewoo Engineering & Construction has been involved in Al-Faw Port's development since 2014, when it began work on what was then the world's longest breakwater at 15.8 kilometers. Including container terminal quay walls, dredging and reclamation, the connecting road and a submerged tunnel, the company has completed nine contracts at the site totaling approximately $3.78 billion, establishing itself as the key partner in Iraq's largest port development.

"This project is a prime example of a successful overseas infrastructure delivery — one that satisfied schedule, quality and safety requirements despite the COVID-19 pandemic and geopolitical risks across the Middle East," a Daewoo Engineering & Construction official said. "Building on the technical expertise we have accumulated, we will continue to expand our project opportunities in Iraq and across the broader Middle East large-scale infrastructure market."

Meanwhile, Daewoo Engineering & Construction has been moving quickly to broaden its business portfolio. The company recently confirmed an investment in a residential development project in Palisades Park, New Jersey, marking its entry into the North American real estate development market.