Economy, Business And Markets

ESCO to Start Rail Production Next Week

ESCO to Start Rail Production Next WeekESCO to Start Rail Production Next Week

Esfahan Steel Company will start rail production by June 21, ESCO’s public relations director said on Wednesday.

“With a production capacity of 400,000 tons per year, ESCO is capable of meeting domestic demand for 150,000 tons of rail,” Mohammad Reza Kajbaf was also quoted as saying by SMT Daily.

ESCO, Ministry of Industries, Mining and Trade, and Ministry of Roads and Urban Development teamed up two years ago in a project called “National Rail Project” with the aim of reducing the Islamic Republic of Iran Railways’ reliance on rail imports and turning to ESCO as Iran’s main supplier of the industrial product.

The project, however, was delayed due to recession in the domestic steel market, ESCO’s lack of liquidity and IRIR’s refusal to pre-purchase the rails.

The general policies outlined by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei in the sixth five-year development plan (2016-21) specifically highlight the importance of developing rail transportation in the country.

The 20-Year National Vision Plan (2005-25) also stipulates that the number of passengers using rail transport be increased from the current 25 million to 65 million per year.