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Iran needs $10B investment in railway projects

Business Materials 29 July 2017 15:35 (UTC +04:00)

Baku, Azerbaijan, July 29

By Emil Ilgar – Trend:

Iran requires 30 to 35 trillion toman ($9.1 to $10.6 billion) investment in its railway projects for the next five years.

Iran’s railway system with a 35 year average wearout age vitally needs investments, the General Director of the Iran Rail Industry Association Majid Babaei told journalists on July 29.

According to Babaei Iran possesses about 24,000 cargo and 2,000 passenger wagons, as well as 100 locomotives which are currently actively used. However, due to the fact of the planed enlargement of the railway grid from the current 11,000 km up to 25,000 km within the next five years, the need arises for more railway equipment, including the wagons.

Babaei has mentioned that during last fiscal year, which ended on March 20, 2017, some 40 million tons of cargo and 25 million passengers were transported via the railway system: moreover, projected figures for 2022 show an increase of up to 100 million tons of cargo and 40 million passengers.

Previously, on June 19, General Director of the Iranian Railways Saeed Mohammadzadeh told Trend, that during the last four years Iran had invested in railroad projects $1 billion annually. For next five years, the figures on investments are expected to reach $1.5 to $2 billions annually.

According to Mohammadzadeh, currently Iran is more focused on boosting its railroad transit capabilities.

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