Economy, Business And Markets

Russian Company to Supply 6,000 Freight Wagons to Iran

Russian Company to Supply 6,000 Freight Wagons to IranRussian Company to Supply 6,000 Freight Wagons to Iran

Russia’s United Wagon Company has signed a deal to supply 6,000 freight wagons to Iran within three years, of which 4,900 cars will be produced inside the Islamic Republic.

UWC signed a preliminary agreement in Tehran on Sunday to supply 1,100 CBU (Completely Built Unit) wagons to Iran in two years, 900 of which are to be imported in the first year of signing the final contract, Shata news agency, affiliated with the Ministry of Industries reported.

As for the 4,900 cars, they will be produced jointly with three Iranian companies" Arak-based Wagon Pars will manufacture 2,200 wagons, Arak Steel 1,250 and the rest will be produced by Wagon Kowsar.

Based on the terms of the agreement, UWC will gradually transfer the manufacturing technology to Iranian companies so that in three years, most of the parts can be manufactured in Iran.

The Russian company has agreed to finance the contract. However, no financial detail is yet available.

Mohammad Reza Hajipour, the head of Arak Industries, Mining and Trade Organization, said the Russian company will start the financing process and supply of parts as of the beginning of the new Iranian year (March 21).

Iranian officials are scheduled to visit Russia in the coming days to sign the final contract.

Headquartered in Moscow, UWC is one of the largest rail firms in Russia and the Commonwealth of Independent States. The holding oversees the design, production, transport and leasing as well as service maintenance of railroad cars. It is owned by ICT Group, an investment venture based in Russia.

One of the largest scientific and industrial complexes in Russia, Uralvagonzavod Corporation assesses the capacity of the Iranian market of freight cars at about 10,000 units. Cargo wagons have so far been supplied by both domestic and foreign companies.

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