Wednesday 20 June 2018

Iran, Russia ink $2.9bn deal to build rail wagons

TEHRAN, August 1, 2017

Iran's Industrial Development and Renovation Organization (IDRO) recently signed a €2.5 billion ($2.9 billion) deal with Russian Transmashholding Company to set up a joint venture for manufacturing wagons for railroads, a report said.

Russian side will provide 80 per cent of the agreement for manufacturing passenger wagons, including the metro wagons, while the rest will be provided by IDRA, Iran Daily reported, citing Trend News Agency.

Transmashholding is the largest locomotive and rail equipment manufacturing company in Russia, Mansour Moazzemi, the head of IDRO's Board of Directors was quoted as saying in the report.

"Alstom France holds 33 percent of the shares in the Russian company,” he added.

Iran, which has about 24,000 cargo and 2,000 passenger wagons, as well as 100 locomotives, plans to expand its railway grid from the current 11,000km to 25,000km within the next five years, the report said.

Moazzemi noted that upon the initiation of the cooperation, IDRO and Transmashholding will purchase an Iranian train production company, called Wagon Pars, to manufacture products required by Iran's railroad industry products.

He added that subsequently, the two sides will raise their investment in proportion with the size of the future projects. "The company's management will be rotational,” he noted.

Tags: Iran | Russia |

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