Iran has signed a deal with Germany to cooperate on the production of 50 diesel locomotives for use in the Iranian rail network, a report said.

The locomotives will be jointly produced by Germany's engineering giant Siemens and Iran Power Projects Management Company (Mapna), Iranian Minister of Roads and Urban Development Abbas Akhoundi was quoted as saying in the Iran Daily report, which cited Irna.

The railway system needs an extra 150 locomotives, he added, noting that Iran currently has 165 diesel locomotives

Iran was also in talks with Germany on investing in Tabriz, Ahvaz and Chabahar airports, Akhoundi said.