Baku, Azerbaijan, Dec. 2
By Fatih Karimov – Trend:
Iran and South Korea signed a contract worth 750 million euro for manufacturing 450 railway wagons.
The deal was signed between Islamic Republic Railways (RAI), Iranian Rail Industries Development Co (IRICO) and South Korean Hyundai Rotem Company on Dec. 2 in Tehran, the state-run IRINN TV reported.
Hyundai Rotem, a part of Hyundai Motor Group, manufactures rolling stock, defense products and factory equipment.
The contract will be implemented in 78 months and the first rail buses will be handed over to RAI within 1.5 years.
The South Korean side will transfer technology know-how to Iran and IRICO will manufacture all the wagons under Hyundai-Rotem license.
The deal’s asset will be provided by South Korean side through finance credit lines. The rail buses will be used to assemble 150 urban trains for passenger transportation.
Earlier in 2004 Rotem entered into a technology transfer and manufacturing agreement (value 110 million euros) with IRICO for the supply of passenger trainsets; 24 units were manufactured by Rotem in 2006, 24 assembled from CKD kits by IRICO, and the remainder was manufactured by IRICO with Rotem assistance. The trains were manufactured for the Raja Passenger Train Company.
Railways are responsible for 30 to 50 percent of suburban transportation in many countries. In Iran, the number hovers around 1.
In the past Iranian fiscal year (which ended March 20), 6 million out of 32 million suburban passengers in Iran were transported by rail.