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    TM Cash Crunch Imperiling Subway Repairs, Operations

    Around 400 out of 1,500 operating subway wagons should be repaired and restored as soon as possible, which require sufficient funds, supply of parts, a large team of technicians and a wagon body production unit

    Over a third of wagons in Tehran’s subway system needs to be overhauled, otherwise their technical faults might disrupt operations sooner or later, an official with Tehran Municipality said.

    According to Manaf Hashemi, TM’s deputy for transportation, around 400 out of 1,500 operating subway wagons should be repaired as soon as possible, ISNA reported.

    He stressed that the repairs require sufficient funds, parts, a large team of technicians and a wagon body production unit.

    “Tehran Metro spans across 250 kilometers around the metropolis which, according to project estimations, should have been expanded to 500 kilometers,” Hashemi said.

    “The subway network does not have enough wagons for offering decent services. As Tehran Municipality is facing a cash crunch, there is a lack of funds for repairs and expansion projects.”

    To curb pressure on the subway network, the official said, “Efforts are being made to streamline Tehran Metro by overhauling the dilapidated wagons using the limited resources available. However, this is more of a sedative for the ailing network. We need workable solutions.”

    Due to the government’s mounting debts to the municipality over the past several years and TM’s lack of sustainable sources of income, the public transportation system in the metropolis has seen almost zero renewal.

    During last week’s meeting of Tehran City Council members, Mohsen Hashemi, the head of TCC, said Tehran’s public transport is on the verge of collapse.

    “The government owes municipality over 700 trillion rials [$2.77 billion] for different urban development projects, including the subsidy on metro tickets, subway development plans, renovation of wagons and addition of new wagons to the metro system,” he said. 

    According to Tehran Metro Company, the system lacks 1,500 train cars, which could boost urban transportation capacity by 6 million people.

    Normally, Tehran Metro handles over 5 million travels a day. According to TM, the number of commuters will surge by 25% after the unfinished subway lines are up and running. 

    But this is definitely not sufficient for Tehran where, according to statistics, over 10 million people commute daily, many from the surrounding cities and towns.

     

     

    Killing Plans 

    According to Ali Emam, Tehran Metro Company’s CEO, 12 stations were planned to become operational by the end of the current fiscal year (March 2021), but lack of financial resources has impeded the plans.

    He announced that 10 trillion rials ($39.6 million) worth of participatory bonds issued by the government for subway expansion were expected to be encashed and delivered to the company by a local agent bank. 

    “Unfortunately, the bonds are nearing expiry and so far, the bank has refused to encash them,” he said.

    According to the latest updates, the bank has promised to encash 2 trillion rials ($7.9 million) of the amount in the coming week.

    Emam said 7 kilometers of Line 6 along its northwestern flank, covering seven stations, and one station of Line 3 are ready for launch. 

    In Line 7, he added, four new stations are ready to start operations. 

    The capital's subway stretches over 220 kilometers and comprises seven lines (1 to 7) with nearly 120 stations. Lines 3, 6 and 7 are yet to become fully operational.

    Tehran Metro Company’s plans also envisage equipping the operating as well as new stations with elevators, escalators, signage, ventilation system and lighting. 

    The head of Tehran’s subway said the completion of two transportation terminals at Shahrak-e Ekbatan and Kolahdouz stations in the western and eastern flanks of Line 4 respectively tops the current year’s agenda.

     

     

    Bankruptcy

    Mohsen Hashemi had earlier stressed that lack of funds is the main obstacle to developing public transportation in the metropolis, noting that the government cannot be blamed, as it is under the intense pressure of US sanctions.

    In September, Mohammad Alikhani, the head of Tehran City Council’s Transportation Commission, said the subway’s network in the capital needs 2 quadrillion rials ($7.92 billion) for the construction of unfinished lines, purchase of train cars and standardization of equipment.

    He added that due to the negative effects of US sanctions since the summer of 2018, Iran’s rial is losing value against hard currencies, making it a tough task to expand and renew the ailing public transportation in Tehran.

    Since the US reimposed sanctions against Iran in 2018, the rial has lost 70% of its value against the greenback over the past year. On Monday, the US dollar was trading at 252,000 rials in Tehran while it hardly fetched 42,000 rials in March 2018.

    “A train wagon cost 50 billion rials a couple of years ago, but now the price exceeds 200 billion rials, which Tehran Municipality cannot afford,” the TCC official said, adding that the local production of train wagons is also a challenge.

    “It’s a pity to witness Tehran Wagon Manufacturing Company nearing bankruptcy due to financial problems. The factory has so far supplied over 1,000 train wagons for Tehran’s subway,” he said.

    Alikhani said the company’s contribution to subway development extends beyond production. 

    “Half of TWMC’s staff used to regularly oversee train operations. Officials and the government should help save the company to prevent a huge loss both to the staff and the subway system,” he said.

     

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