Iran’s High Council of Transportation has approved a 25% hike in train fares as of Jan. 20 due to the decline in the number of passengers per train following measures to curb Covid-19 transmission.
Intercity passenger trains are allowed to increase fares by 25% on condition that they sell tickets at up to 50% of train’s compartment’s seating capacity, Fars News Agency reported.
According to the Islamic Republic of Iran Railways, the national state-owned company kept five million train seats empty in the current year (March 2021-21) compared with last year.
As a result, IRIR has suffered losses worth 6,000 billion rials ($25.36 million) following the implementation of social distancing measures.
Mir Hassan Mousavi, a senior official with IRIR said, “Tickets booked for the whole compartment won’t be subject to the 25% price hike. The directive was communicated on Jan. 20 and will take effect in the next couple of days. No price increases have been envisioned for the Iranian New Year holidays [stating March 20].”
Passenger rail trips experienced an 80% nosedive during the first half of the current Iranian year (March 20-Sept. 21), inflicting 14 trillion rials ($60 million) in losses to the Islamic Republic of Iran Railways and other rail transportation companies, according to the head of IRIR.
“This means that a total of 13.7 million fewer tickets for passenger travels were sold during the six-month period, compared with the similar period of last year, all of which has to do with the outbreak of the Covid-19 pandemic,” Saeed Rasouli was also quoted as saying by IRNA.
The official noted that a great many passengers cancelled their tickets during the Iranian New Year holidays (started March 20), the peak season of tourism in Iran, due to the coronavirus outbreak.
“Passenger rail companies gave full refund to 1.2 million pre-purchased tickets worth 1.07 trillion rials [$4.65 million]. Rail passenger transport continued to decline after March, causing a drastic decline in rail passenger companies’ revenues, which were already financially burdened with the task of disinfecting their wagons and facilities, and abiding by related health protocols,” he said.
Rasouli added that the government promised to grant financial aid worth 9.4 trillion rials ($40 million) to rail cargo and transportation companies, noting that out of the 62 companies that applied for these facilities, only seven (two cargo and five passenger transportation companies) have so far managed to receive loans.
Presently, all coronavirus-related protocols as well as social distancing are being followed and trains are running according to the timetables.
The number of rail passengers fell by 94% in the new Iranian year holidays (March 20-April 1) compared with last year’s similar period, according to Mehrdad Taqizadeh, secretary of Iran’s Guild of Rail Transport Companies.
The High Council of Transportation, affiliated to the Ministry of Roads and Urban Development, had earlier approved a 20% rise in rail fares on June 21, according to the official.
“The decision was made with regard to the social distancing guidelines of the Health Ministry in light of the coronavirus pandemic and the inflation rate. Passenger trains are now operating at half their capacity; only two passengers are allowed in a four-seater booth,” he added.
Noting that as per the directive of the council, supply and demand will determine the fares of five-star trains, Taqizadeh said rail companies had asked for a 60% rise in ticket prices given the social distancing rules and the inflation rate but the council only approved a 20% increase. It also agreed to a 50% rise in the fares of suburban trains,” Fars News Agency reported.
Sixty percent of loans allocated for transportation companies (road, air, rail and sea) hurt by the coronavirus had been paid as of Dec. 13, according to Mohsen Sadeqi, an official with the Ministry of Roads and Urban Development
“Out of 48 trillion rials ($202 million) worth of financial support allocated by the government to the transportation sector, 28.6 trillion rials ($120 million) have been paid,” he said.
“Loans considered by the government for the transportation sector is divided into two parts: the first part of this support package has been paid to air and rail transportation sectors, which have been seriously hurt by the pandemic; the second package has been dedicated to over-the-road public transportation sector.”
Sadeqi noted that a total of 218,000 applications have been submitted for government-backed loans by transportation companies. Nearly 151,000 of these applications have received 28.6 trillion rials; the documents and collaterals of the rest are under review, IRNA reported.
“Twenty-nine air transportation companies have applied for more than 25.53 trillion rials [$107 million] in loans; 10 of them have received loans worth 17.5 trillion rials [$74 million] thus far. Sixty rail transportation companies have applied for 8.75 trillion rials [$37 million] in loans; 16 of them have received loans worth 1.6 trillion rials [$6.7 million] so far,” he added.
Sadeqi further said out of 275,000 employees from the transportation sector who registered for coronavirus loans at Kara.mcls.gov.ir, the loans of 175,000 workers have been granted until now.
