Economy, Business And Markets
0

Iran, Italy to Sign €1.2b Railroad Deal

Italian Company to Sign €1.2b Railroad DealItalian Company to Sign €1.2b Railroad Deal

Iran’s national rail company, the Islamic Republic of Iran Railways, will sign a €1.2 billion deal with its Italian counterpart on July 11 to build a high-speed railroad between the cities of Qom and Arak.

The agreement will be signed during the visit of Renato Mazzoncini, CEO of Italy’s state railroad company Ferrovie dello Stato otherwise known as FS, to Tehran, IRNA reported on Monday, citing IRIR. A delegation will accompany Mazzoncini on his Iran visit, during which FS will also sign two other deals on holding training courses for IRIR personnel, the report added.

FS signed a preliminary agreement with IRIR back in February to develop Iran’s railroad system. The deal includes up to €5 billion ($5.65 billion) in export credits from Italy for Iran.

“The FS group will supply assistance to the Iranian railroads … for both high-speed and conventional rail lines, including a complete program for training personnel,” read a statement from Ferrovie. It added that FS will be on the “frontline” for the planning and construction of high-speed rail links between the Iranian cities of Tehran and Hamedan, and between Arak and Qom.

Iran has 3,500 kilometers of railroads under construction. The country’s 20-Year Vision Plan (2005-25) stipulates that the number of passengers using rail transportation in the country will increase from the current 25 million to 65 million per year.

Add new comment

Read our comment policy before posting your viewpoints

Financialtribune.com