61428
Passenger Rail Transportation Declines
Passenger Rail Transportation Declines

Passenger Rail Transportation Declines

Passenger Rail Transportation Declines

As Iran is expanding railroads across the country, an executive of a major Iranian rail company said passenger rail transportation is gripped by a longstanding recession.
“It has been a long time since passenger trains are not cost-effective,” Alireza Ajamian with RAJA has been quoted as saying by the Persian daily Shahrvand.
RAJA was established in November 1996 as an arm of the Islamic Republic of Iran Railways with the aim of improving the quality and quantity of railroad passenger services.
It was transferred to Tourism Holding Company’s Social Security Organization (known by its Persian acronym Hegta) in March 2010 as part of IRIR’s outstanding debt to the organization.
CEO of RAJA Mohammad Rajabi said the company’s share in national rail transportation is around 50%.
Ajamian said RAJA has posted a 2-million drop in the number of passengers during the current Iranian year (March 2016-17) compared to the year before.
“The decline has continued for some time now,” he said. “Train owners cover a major share of their costs through freight trains.”
He attributes the reduction of rail passengers to a decline in Iranians’ purchasing power. Passengers tend to opt for private cars since it is cheaper because of low fuel prices. Fuel is subsidized in hydrocarbon-rich Iran. Much as the government has tried to reduce energy subsidies in the past years, prices are still comparatively low. The administration of President Hassan Rouhani has put development of rail industry on top of its agenda to promote safe transportation and fuel conservation and fight against pollution.
“Suburban trains are the least financially viable [means of transportation in the rail sector],” Shahrvand quotes sales manager of a rail company without mentioning the person’s names.
“Their [suburban train operators] accumulated debt has reached 4 trillion rials during the past three to four years.”

 

Short URL : https://goo.gl/a3Rnaw
  1. https://goo.gl/gdnuXZ
  • https://goo.gl/heIUrp
  • https://goo.gl/Nah2OO
  • https://goo.gl/Suff0u
  • https://goo.gl/9Laj18

You can also read ...

Iran's Economic Ties With Qatar Booming, Exports Up 117%
Iran exported $139 million worth of non-oil goods to Qatar...
Iran Oil Minister Plays Down Total's Exit From Binding Gas Deal
Iranian Oil Minister Bijan Namdar Zanganeh says Total S.A.'s...
China relies on oil imports from Iran while Tehran looks to Beijing for investment.
The value of Iran's exports to China during the nine months to...
Representatives of the chambers of commerce of Tehran and Vienna attended a joint event in Austria’s capital Vienna.
At a joint event attended by the 36-strong delegation from...
No Problem With Plane Deal Financing
Iran does not have a problem obtaining financing for its...
Tehran, Kiev Discuss Upgrading Aviation Ties
Head of the Iranian Parliament’s National Security and Foreign...
No Restrictions on Bank Sepah’s German Operations
Bank Sepah, the oldest Iranian bank, has denied reports in the...
Exports to Europe  Rise 107%
The value of Iran’s exports to the European Union from January...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus