• Domestic Economy

    Iran Self-Sufficient in Manufacturing Rail Freight Wagons

    With the manufacture of rail monoblock wheels and wagon breaks by local companies, Iran became 100% self-sufficient in producing cargo wagons, according to the minister of roads and urban development. 

    “We plan to manufacture wagons and rail system parts in bulk and, apart from meeting domestic demand, gain a foothold in international markets in the near future,” Mohammad Eslami was also quoted as saying by IRNA.

    The official told the news portal of the Ministry of Roads and Urban Development that the government aims to become self-sufficient in manufacturing passenger wagons.

    The official said last year that in meeting domestic demand for wagons and locomotives, the government is giving priority to local manufacturers and their production capacity.

    Saeed Rasouli, CEO of the Islamic Republic of Iran Railways, recently said the ministry has obliged rail transportation companies to procure wagons and spare parts from local companies.

    A total of 70 domestically-made and overhauled rolling stock worth 2.23 trillion rials ($8.5 million) joined Iran’s rail fleet on Nov. 24.

    “The added fleet included 57 high-sided four-axle, 10 two-axle container carrier wagons and one self-propelled locomotive undergone full-scale renovation,” Rasouli was also quoted as saying by IRNA.

    Arak Province’s Wagon Pars Company, Isfahan’s Kowsar Wagon Company, Derakhshan Steel Company and MAPNA Group are domestic rolling stock manufacturers engaged in the project.

    Investors in the project were Azar Kia Trading Company, Pouya Tarabar Pishtaz Company and Raja Railway Transport Company.

    The official noted that this round’s newly-added fleet have saved the country €26.8 million and created 856 jobs in the country’s rail sector. 

    Overall, 521 locomotives and passenger and cargo wagons worth 11.56 trillion rials ($44.5million) have been added to the country’s rail fleet since the beginning of the current Iranian year on March 20, showing a 20% increase compared with the similar period of last year.

    During the ceremony, Iran unveiled its first domestically-manufactured locomotive after 10 years, called Pars 33, and with that Wagon Pars Company, which had ceased manufacturing locomotives around 10 years ago, officially resumed locomotive production.

    “This locomotive, with a 3,300-horsepower engine, will be handed over to Alborzniroo fleet and Equipment Company (ANC) that had placed the order.”

    Mohammad Reza Mokhtari, Wagon Pars CEO, said the firm plans to manufacture three more locomotives by the end of the current Iranian year on March 20, 2021.   

    Iranian rail transport companies have placed orders with domestic companies to manufacture a total of 8,077 rolling stock.

    Eslami told Mehr News Agency that the government has set a goal to produce and overhaul 2,000 rolling stock by the yearend and to reach that goal, the Roads Ministry has issued permits for passenger wagon manufacturers to be able to produce cargo wagons.

    IRIR signed a contract with IRICO for the rolling stock manufacturer to overhaul locomotives and wagons as part of the plan to reach the set target. 

    IRICO, founded in 2003, is an Iranian manufacturer of passenger rolling stock. The company is headquartered in Tehran and has a factory in Zanjan Province’s Abhar County where it designs and manufactures various types of rolling stock such as passenger coaches, metro cars, Diesel Multiple Units, various freight wagons and bogies in accordance with the standards of the International Union of Railways.

    Today, Iran benefits from around 14,000 kilometers of railroad stretched across the country. Nearly as much is under construction or being designed.

    With the aim of reducing road traffic and battling air pollution, the Ministry of Roads and Urban Development has placed the development of Iran’s rail sector on top of its agenda.   

    Iran’s Sixth Five-Year Development Plan (2017-22) has tasked the government with increasing the share of rail in cargo and passenger transportation to 30% and 20% respectively by the end of the plan.

    Eslami said in September that before the outbreak of the novel coronavirus pandemic, the share of rail in cargo transportation stood at close to 13% and estimated that the figure will rise to 15% by the yearend. 

    The share of rail in passenger transportation currently amounts to around 8%.