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Isfahan Steel Company, Iran’s third largest steel producer, is affiliated to the Ministry of Industries, Mining and Trade.
Isfahan Steel Company, Iran’s third largest steel producer, is affiliated to the Ministry of Industries, Mining and Trade.

ESCO to Launch Rail Production Soon

ESCO was due to launch rail production by June 21, which has been rescheduled twice due to recession in the domestic steel market and lack of liquidity
Iran needs an average of 300,000-400,000 tons of rail annually to meet the needs of this key transport sector

ESCO to Launch Rail Production Soon

Isfahan Steel Company will start the mass production of rails in a few days to meet the growing need of ongoing railroad projects across the country.

“The manufacturing line is ready. We will start the mass production of railroad and subway tracks in a few days on par with the latest international standards,” Ardeshir Afzali, deputy head of ESCO, was quoted as saying by IRNA.

Isfahan-based ESCO (locally known as Zob Ahan-e Esfahan), Iran’s third largest steel producer, is affiliated to the Ministry of Industries, Mining and Trade.

The Ministry of Industries, Mining and Trade, Ministry of Roads and Urban Development and ECSO teamed up two years ago to promote the “National Rail Project” to reduce reliance on rail imports.

The project, however, was delayed due to recession in the domestic steel market, ESCO’s lack of liquidity and the Islamic Republic of Iran Railroad’s refusal to pre-purchase the steel tracks.

Initial plans to produce domestic rail go back 10 years when the former government thwarted a deal to import 100,000 tons of rail from Spain, arguing that imports should be curbed so that demand is met by domestic manufacturers.

ESCO was due to launch production by June 21, which has been rescheduled twice, making numerous rail development projects face shortage amid limited imports.

Iran’s next five-year economic development plan (2016-21) stresses, among other things, the need to develop the rail transport network.

According to the Minister of Roads and Urban Development Abbas Akhoundi, Iran needs to build 1,500 kilometers of railroads for which it needs 1.8 million tons of rails.

IRIR earlier said Iran needs an average of 300,000-400,000 tons of rail per year to meet the needs of this key transport sector.

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

Last month, New Delhi-based steel and energy company Jindal Steel and Power Limited dispatched the first consignment of 1,700 tons of rails out of a total order for 150,000 tons to Iran.

Export of rails by Indian steel companies to Iran is seen as part of the pact between the two countries to develop railroads and other infrastructure at the strategic Chabahar Port in southern Iran.

New Delhi-based engineering and construction company IRCON International Limited is also building a rail line at Chabahar to move goods to Afghanistan.

 

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