ESCO Struggling to Produce Rails

Domestic rail production, although less costly compared to importing foreign products, is still struggling to get off the ground, the deputy head of Construction and Development of Transportation Infrastructures Company said.

“We believe in Esfahan Steel Company’s rail production capabilities and know that it’ll be cost and time-efficient. But [ESCO] has yet to reach minimum production capacity and is struggling with the basics of rail production,” Jabar Ali Zakeri was also quoted as saying by Bourse Press.

ESCO, based on its deal with Islamic Republic of Iran Railways, has agreed to provide the company with 40,000 tons of rails by the end of the current Iranian year (started March 21).

Zakeri noted that CDTIC also recently reached an agreement with ESCO for the purchase of 25,000 tons of UIC60 rail made using Indian and Russian steel materials.

In November 2016, ESCO launched a 400,000-ton per year rolling mill with the participation of the German Kuttner Company to produce rail and wide-flange beams but it has not sold any to the national railroad company yet and only some trial products have been produced up to now, according to S&P Global Platts.