Iran-Russia Railroad Projects in Full Swing

Joint railroad projects between Russia and Iran benefit virtually all of Europe and Asia, the chairman of Islamic Republic of Iran Railways’ International Affairs Department said.

Abbas Nazari also told Sputnik Persian that cooperation between Russia and Iran on an intercontinental railroad project is “profitable not just for both countries, but also for Asian and European states”.

“Russia is a prominent railroad power. It has an extensive network of railroads, which accounts for 85% of all freight transported by the country. An important element of our cooperation is the International North-South Transport Corridor that, as you know, begins in Europe and extends to India via Russia, Azerbaijan and Iran. We seek to ensure that Iranian railroads become the primary transit element of the corridor,” he said, adding that the length of the Iranian segment of the corridor is about 2,000 kilometers.

Nazari noted that Russia and Iran need each other to move their freight between Europe and Asia, and that Tehran enjoys an unprecedented level of technological cooperation with Moscow.

He also said Iran cooperates with Russia on several other important rail-related ventures, like the joint manufacturing of railroad carriages and the upcoming electrification of the 600-kilometer segment of the Garmsar–Inche Borun railroad, as well as on other large-scale infrastructure projects.

The Industrial Development and Renovation Organization signed a €2.5 billion contract with Russia’s CJSC Transmashholding in Tehran on July 31 for joint production of rolling stock in Iran.

Based on the contract, a joint venture will be formed between IDRO and the Russian company, with the Russian side holding an 80% stake and the Iranian side a 20%.

Transmashholding CEO Kirill V. Lipa told Financial Tribune after the signing of the contract that the capacity of the joint venture will depend on the depth of localization.

“For assembling, we’re thinking about 300-400 units per year,” he said.

The largest manufacturer of locomotives and rail equipment in Russia with Dutch firm Breakers Investments BV and French engineering group as its stakeholders, Transmashholding will be taking over Iran’s Wagon Pars Company to start manufacturing.

“We’re working together with Russia on developing the biggest docking area in Iran–the Shahid Rajaee Port. The ongoing negotiations cover all aspects of this undertaking: the port itself, the access railroads and the special economic zone. Once all these matters are settled, the developing process will begin in earnest,” Nazari explained.

The International North–South Transport Corridor is a 7,200-kilometer interconnected network of railroads, roads and shipping lanes designed to facilitate the flow of freight through India, Iran, Russia, Azerbaijan, as well as European and Central Asian states.