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Iran Eying Oil-for-Bus Swap

Iran’s Interior Ministry is devising a plan to buy 3,600 new buses in exchange for oil to renew the ailing public transportation fleet of metropolises

In order to upgrade Iran's aging bus fleet, the government is considering swapping oil for 3,600 new buses, a deputy interior minister said.

Mehdi Jamalinejad added that due to rising air pollution and hosting the largest population, Tehran will receive the most buses, 1,200 in total, among megacities. 

Following the capital city, Isfahan, Tabriz and Mashhad have been prioritized for bus fleet expansion, IRNA reported. 

"The oil-for-bus swap plan is a solution to the government's lack of financial resources, which has been exacerbated by US sanctions," he said.

According to the official, more than 70% of Iran's public transportation fleet are old and dilapidated. 

"A timely fleet renewal necessitates a realistic and comprehensive plan," he added.

A similar scheme was proposed by the National Coronavirus Headquarters in early March 2021, when the danger of Covid-19 infection intensified the long-term public discontent about the deficiency of buses. 

“To help solve the issue, the coronavirus headquarters has authorized officials to import semi- and complete-knocked down buses in exchange for oil without undermining the local production capacity. Therefore, domestic automakers are required to put maximum effort in bus manufacturing,” Pirouz Hanachi, the former Tehran mayor, said at the time.

However, the plan has been postponed until now.

Jamalinejad further said that along with the import of new buses, the overhaul of operating vehicles is also high on the Interior Ministry’s agenda. 

“Restoration of public transport fleets, including bus and subway, in large cities will be bolstered with 80 trillion rials [$285.7 million] of participatory bonds allocated by the government to municipalities,” he said, without elaborating further

 

 

More Bus Additions

According to Jafar Tashakkori, chairman of Tehran City Council's Transportation Commission, 500 buses will join the fleet of the capital city Tehran, as part of efforts to improve the city's transportation system.

He said in late September 300 double-decker buses that were retired due to dilapidation would be restored to again offer services.

The official stated that talks are currently underway with domestic automakers for the purchase of 200 buses. 

In addition to resolving the fleet's inadequacies, TCC has put together an emergency plan to use smart transportation management tactics to get the most out of the available public vehicles.

“The current state of public transportation in Tehran is a result of years of inaction. Hopefully, such compensatory moves, albeit minor, will be helpful,” he added.  

Mahmoud Tarfa, the head of Tehran Bus Company, had earlier said Tehran’s transportation fleet requires 7,000 high-quality buses to provide adequate services. 

He added that 50% of the buses operating in Tehran’s fleet, accounting for 3,500 vehicles, are dilapidated and in dire need of repair or replacement.

“Over one million citizens commute in the capital by bus every day. The sudden exclusion of old vehicles from the fleet will cause capacity deficiency and problems in terms of social distancing during the Covid-19 pandemic,” he said.

“TBC needs state support to boost its services and meet urban mobility demands. However, in the past several years, Tehran Municipality has been the only institution making efforts in this regard.”

Tarfa explained that since 2016, the government has not extended fiscal support for public transportation and Tehran Municipality has been single-handedly and slowly streamlining the transport fleet. 

“Last summer, the municipality signed an agreement with Iran Khodro Company for manufacturing 250 buses for Tehran’s transport system. One hundred buses were delivered to TBC in November 2020 and another 110 vehicles were delivered on Saturday. The remaining 40 buses are expected to join the fleet by the current [fiscal] yearend [March].”

Although such renewals can help restore the ailing fleet, larger projects are required for overhauling public transportation. 

He added that the transportation fleet has failed to attract private investors, “because investors seek productivity and profit, which cannot be found in the transportation sector”. 

The sector has a limited budget and operational capacity, while the dilapidation of vehicles has incurred losses, he added.

Following recent efforts to strengthen the capital’s public transport, Iran’s Vice President for Science and Technology launched a joint initiative with the University of Tehran for converting diesel- and gas-powered buses currently operating in the capital city into electric vehicles.

According to Shahriar Zaini, the head of Space Technology Development Center at the vice presidential office, the project is aimed at revamping the aging public transportation fleet and curbing air pollution in the city.

The project entails the replacement of the vehicles’ combustion components with electric engine system, performance optimization and weight reduction.

“This is a revolutionary move in the country’s transportation sector and a huge investment opportunity,” he said, calling on private entities and state institutions to propel the plan with financial support.