19 Apr 2024
Tuesday 31 October 2017 - 11:34
Story Code : 281450

Iran: The place where the world's rail industry goes to feast

Forbes | With most sanctions lifted, Iran is going all-in on its potential to become a transport hub in the heart of Eurasia, returning the country to its traditional position as a vital link between East and West.

However, Irans transportation dreams have a major problem in the current reality: decades of sanctions have left the countrys rail lines archaic and in disrepair. To fix this, Iran isdevoting 1% of its oil and gas salesto rail development, amounting to a roughly $25 billion initiative to revitalize its existing rail network as well as add on10,000 kilometers of new rail lines by 2025 creating a yearly demand for roughly 8,000-10,000 new wagons in the process.

Irans rail ambitions are currently a shining beacon for rail engineering and rolling stock firms from all over the world, who are lined up at the gates of Tehran licking their chops in gleeful anticipation for the infrastructure building melee that is about to begin.

China

China wasIrans economic lifelineduring the period of heavy sanctions, and now Iran is a fundamental link in the countrys Belt and Road Initiative a program of such importance to Beijing that it isnow written into the Chinese constitution.

As part of a goal to boost China-Iran bilateral trade to US$600 billion per yearwithin the next decade, China is doing some heavily living in Iran's reinvigorating railway sector.In February, thefirst freight train from China arrived in Tehran, and a few months later Chinas Export-Import Bank inked a $1.5 billion deal to provide funds to electrify the rail line from Tehran to Mashhad -- along with promises to invest $9 billion in over two dozen other projects in array of other industries, including electricity, petrochemicals, metals, and oil and gas.

The Tehran to Mashhad line is one of the biggest developments in Irans emerging rail menagerie. This 926-kilometer railway is expected to be extended into a3,200-kilometer New Silk Road behemoth, that will go all the way through Kazakhstan, Kyrgyzstan, Uzbekistan, and Turkmenistan to Urumqi, the capital of Chinas Xinjiang province. This line is also slated to link in with Irans western railway network which leads to Turkey and Europe beyond.
https://theiranproject.com/vdcjive8yuqeoxz.92fu.html
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