Iran is poised to sign an agreement to purchase and manufacture 6,000 freight wagons during the ongoing 5th International Exhibition of Rail Transportation and Related Industries and Equipment, being held in Tehran, according to a senior official.

The event which opened today (May 15) will concluded on May 17, at the Tehran International Permanent Fairground .

Based on the agreement, 4,900 freight wagons will be built by three local companies with 100-per cent foreign funding plus a €250-million ($273.2 million) Russian investment, Babak Ahmadi, deputy head of Islamic Republic of Iran Railways Company, was quoted as saying in an Iran Daily News report, citing Irna.

He further added that a total of 1,100 wagons will also be imported, underlining that no import would be permitted until the launch of manufacturing lines of the three Iranian companies.