Iran railway needs $40 billion in investment

Business Materials 10 May 2011 16:33 (UTC +04:00)

Iran needs $40 billion in investment to promote railway projects during the Fifth Socio-Economic Development Plan (2010-2015), IRNA reported quoting director general of investment and economical affairs of Islamic Republic Railways.

The railway needs $40 billion during 5 years of development plan to buy new fleet and implement new railway lines.

"The railway needs a total of $8 billion in investment annually during Fifth Socio-Economic Development Plan (2010-2015)," Hossein Ashouri said Tuesday

According to Ashouri, Iranian government annually provides at least 40 percent of funds needed for the railways.

"Other resources are to be provided by private investments and bank facilities," he added.

Iran railways and transport system share of passenger is 4 percent. During the Fifth Socio-Economic Development Plan, it is planned to increase passenger transportation to 18 percent and cargo shipment to 30 percent.

The private sector is to provide $3 billion approximately to state railways during the 5-year development plan.