Economy, Domestic Economy

Turkey Begins Rail Exports

Turkey Begins Rail Exports
Turkey Begins Rail Exports

Turkish steel producer Kardemir has shipped 10,000 tons of rail to Iran as part of an €80-million contract to export 140,000 tons of rail, according to the company’s CEO Mesut Ugur Yilmaz.

“The company has so far produced 40,000 tons of rail as per the contract,” he was quoted as saying by Turkish newspaper Hurriyet. Turkey signed the contract with Iran in April to barter Turkish rail in exchange for Iranian oil to be supplied to Turkish Petroleum Refineries Company. 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 by 2021.

The Islamic Republic of Iran Railways says Iran needs an average of 300,000-400,000 tons of rail per year to meet the needs of this key transport sector.

Back in August, 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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