Iran, Russia to finalize freight cars deal in coming days
Baku, Azerbaijan, May 13
By Fatih Karimov – Trend:
Iran and Russia will sign a contract for manufacturing and import of freight cars in coming days, Babak Ahmadi, deputy head of Iranian Railway Company for Trains Fleet, said.
The final contact will be signed on the sidelines of the 5th International Exhibition of Rail Transportation Related Industries and Equipment, which is scheduled for May 15-18, Ahmadi said, IRNA news agency reported May 13.
Under the contract, 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), Ahmadi said.
Import of cars will start only after the production line for manufacturing the 4,900 cars launched in Iran, he said, adding that Russian side will finance the entire project worth 250 million euros.
Wagon Pars, Kowsar Wagon Company and Derakhshan Arak Steel are Russian United Wagon company’s counterparts in the Islamic Republic.
Based on initial agreement, the freight cars will be manufactured within three years.
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.