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The head of the Railways of the Islamic Republic of Iran (RAI) said a $500 million fund has been allocated for purchasing the equipment, repairing and modernizing the railway fleet of the country using oil bartering. Miad Salehi made the remarks in a meeting with the producers and repairmen of the railway fleet of the country, adding that another $500 million will also be earmarked for buying locomotives.
The official further pointed out that the construction of 50 freight locomotives of the company will be awarded to the private sector in the next month, the website of Iran’s Ministry of Transport and Urban Development (MRUD) reported. With the coordination made in this regard, the contract for awarding the construction of 50 freight locomotives and another contract of investment for repairing 15 other locomotives (ROT) will be unveiled in a ceremony as well, the deputy transport minister added.
In late September 2023, Salehi said that with the diversification of financing and support for domestic production in the coming months, the domestic fleet of rail transport will develop by leaps and bounds. During a press conference held in early August 2023, Salehi mentioned the development of railways as a necessary factor for the economic surge in the country.
He reiterated that the development of the transportation sector is vital for the economic surge, and the railway is the pillar for development in this sector. The official also stated that RAI is seriously negotiating with other countries, especially the neighbors, to promote railway transit via Iran. The official further mentioned domestic production, and said, “We pay special attention to domestic production and facilitating it.”
The development of the railway sector has been one of the macro policies of the Iranian government as it has been emphasized by the general policies of the country’s national development plans. In this regard, the national railway fleet has constantly received new domestically-made locomotives and wagons in the past and current Iranian calendar years.
Advantages such as consuming less fuel and creating less pollution as well as high safety attach priority to the railway when compared to some other transportation systems, and make its development economically viable.
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