Baku, Azerbaijan, Mar. 6
By Fatih Karimov – Trend:
Russia’s United Wagon Company has reached an agreement with three Iranian companies to manufacture freight cars.
Under the deal, 6,000 freight cars will be manufactured within three years for the Islamic Republic of Iran Railways, Iran's Industry, Mines and Trade Ministry's official SHATA news portal reported.
Wagon Pars, Kowsar Wagon Company and Derakhshan Arak Steel are the Russian company’s counterparts in the Islamic Republic.
Based on the contract, the three Iranian companies will manufacture 4,900 freight cars through funding from the Russian side, while 1,100 freight cars will be imported as completely built units (CBUs).
Iran’s transport sector has remained underdeveloped due to mismanagement as well as international sanctions.
A May 2016 report said the major Iranian wagon maker Pars Wagon was operating at 25 percent of its capacity because of scanty liquidity with railway companies and too few orders from customers.