Iran awards rail electrification project to Chinese firm under Belt and Road cooperation

TEHRAN, Iran (MNTV) — Iran has awarded a contract to a Chinese company to electrify a key section of its east-west railway network, as part of a broader strategy to increase freight transit and strengthen its role in regional logistics under China’s Belt and Road Initiative.

Jabbar Ali Zakeri, CEO of the Islamic Republic of Iran Railways, announced the development following talks with China State Railway Group Chairman Guo Zhuxue in Beijing. The contract covers nearly 1,000 kilometers of railway, stretching from the Sarakhs border in northeastern Iran to the Razi border crossing with Iraq in the west.

The project also includes double-tracking in selected segments, with the goal of tripling annual freight capacity along the corridor to 15 million metric tons. Zakeri emphasized that the upgrade will significantly boost Iran’s ability to handle increased transit from China and other Asian countries to Europe and the Middle East.

Guo Zhuxue reiterated China’s commitment to deepening infrastructure cooperation with Iran, describing the country as a vital link in the Belt and Road Initiative. He noted that China is working to expand container cargo traffic via Iran’s railway network, which serves as a strategic transit route connecting East Asia to key markets.

The electrification initiative comes as Iran intensifies efforts to diversify its economy by enhancing transport infrastructure and reducing reliance on oil exports. In recent years, Iran has positioned itself as a regional transport hub, facilitating both north-south and east-west trade flows between countries such as China, Russia, and India.

The contract is part of a long-term framework under the 25-year strategic cooperation agreement signed by Iran and China in 2021, which envisions significant Chinese investments across Iran’s transportation, energy, and industrial sectors.