IRANIAN Islamic Republic Railways (RAI) has reportedly signed two public-private partnership (PPP) investment deals with private companies which aim to substantially upgrade its passenger and freight fleets.
Local media report that under the first deal, A.One Rail Passenger Trains will invest $US 713m in 600 tank wagons, 300 DMU cars, and 50 locomotives. The second agreement with Pars Ofogh Hashtgerd will help to finance the procurement of 650 wagons for bulk freight.
According to the Tehran Times the financing agreements involve international lenders. However, Jabbarali Zakeri, head of RAI, declined to name the countries involved, noting that the private sector has been directly engaged in the foreign financing arrangements.
Zakeri added that solving current challenges - particularly in rolling stock - would enable Iran to meet its Seventh National Development Plan targets, including increasing rail’s share of national transport to 30% and boost annual transit freight capacity to 40 million tonnes. “This includes the addition of 950 locomotives, 300 passenger coaches, and 3000 freight wagons,” Zakeri says.
Shortly after taking up his current role in September, Zakeri said he wanted to foster a closer relationship between the state-owned railway and the private sector, which he says can help to resolve traction shortages, with just 50% of the country’s locomotives considered operational.
Nourollah Beiranvand, RAI’s deputy for investment and transport economy, says that RAI is hoping to attract $US 6.4bn from the private sector for rail development.
“77% will be allocated to rolling stock and the remaining 23% to infrastructure,” he says.
