The construction operation of Chahbahar-Zahedan-Mashhad railway project started during a ceremony attended by President Mahmoud Ahmadinejad at Konarak port in southeastern province of Sistan-Baluchestan.
The 1330-kilometer-long railway is set to be constructed within five years, Press TV quoted the Deputy Roads and Transportation Minister Nasser Pourmoallem.
"The estimated finance of the project in the current Iranian year (beginning March 21, 2010) is almost $2.36 billion," Pourmoallem added.
The Chahbahar-Zahedan-Mashhad railway is among the country's major railway plans, which would play a significant role in developing eastern Iran as well as the Chabahar free trade zone. The railway would also make a considerable change in trade and transit for Iran's eastern neighbors and the central Asian region.