IRNA � Member of Aras Free Zone Organization board of directors declared signing of 700 million euro memorandum of understanding (MoU) to build, maintain, operate and cede the railway to Iran in the area of 'Jolfa-Nordouz-Qolibiglo'.

Safar Shasfand told reporters on Thursday the MoU was signed between Aras Free Zone Organization and an Iranian-European Consortium to build a 204 kilometers railway in the framework of 'BOT' for construction-operation and ceding.

In this method the investor will operate the railway after its construction and then after the determined period it will be ceded to Iran's railways Company.

According to feasibility study, the period would be 25 years of which five years would be to complete the project and 20 years for operation with the private sector investor.

He evaluated this project will has positive affect to increase Iran's share in international corridor transit.

Shasfand said according to predictions total amount of transit cargo absorbable in this route at the first operating year will be 1.53 million tons and at the 20th year will be 10.76 million tons.

In the sector of passenger it would be 101,000 at the first year and 409,000 passengers at the 20th year, he added.

The railway is to connect again the closed route between Iran and Commonwealth of Independent States (CIS) through Iran's territory to Azerbaijan Republic and so the railway and commercial communications with different countries, which used Iran's corridor, will resume.

Aras Free Zone is neighboring Nakhchivan Autonomous Republic, Republic of Armenia and Azerbaijan Republic.