Financial Tribune- Iran�s national rail company, the Islamic Republic of Iran Railways, will sign a �1.2 billion deal with its Italian counterpart on July 11 to build a high-speed railroad between the cities of Qom and Arak.

The agreement will be signed during the visit of Renato Mazzoncini, CEO of Italy�s state railroad company Ferrovie dello Stato otherwise known as FS, to Tehran, IRNA reported on Monday, citing IRIR. A delegation will accompany Mazzoncini on his Iran visit, during which FS will also sign two other deals on holding training courses for IRIR personnel, the report added.

FS signed a preliminary agreement with IRIR back in February to develop Iran�s railroad system. The deal includes up to �5 billion ($5.65 billion) in export credits from Italy for Iran.

�The FS group will supply assistance to the Iranian railroads � for both high-speed and conventional rail lines, including a complete program for training personnel,� read a statement from Ferrovie. It added that FS will be on the �frontline� for the planning and construction of high-speed rail links between the Iranian cities of Tehran and Hamedan, and between Arak and Qom.

Iran has 3,500 kilometers of railroads under construction. The country�s 20-Year Vision Plan (2005-25) stipulates that the number of passengers using rail transportation in the country will increase from the current 25 million to 65 million per year.