Iran signs $1.5B rail investment deals with private sector
Agreements to boost passenger and cargo rail fleet as Tehran targets 40 million tons in freight capacity
TEHRAN, Iran (MNTV) — Iran’s private sector has signed two major investment agreements with the government to upgrade the country’s rail transportation systems, committing over $1.5 billion to expanding passenger and freight capacities.
The memoranda of understanding were signed at a ceremony in Tehran, attended by Minister of Roads and Urban Development Farzaneh Sadegh, according to Tasnim News Agency.
Under the agreements, private firms will supply over 2,000 new passenger railcars and cargo wagons, with an investment totaling more than 640,000 billion rials—equivalent to approximately $1.51 billion based on current exchange rates.
One of the signatories, a private holding company, has committed to investing 30,000 billion rials (roughly $70 million) in the purchase and local production of 650 specialized freight wagons, primarily for agricultural commodities.
The deputy chairman of the Islamic Republic of Iran Railways stated that the country is pursuing long-term goals to increase rail freight volumes to 40 million tons annually.
He also revealed that Tehran is targeting $6.4 billion in total investment for the rail sector, with 77% earmarked for expanding the railcar fleet and the remainder allocated to infrastructure upgrades.
Iran has increasingly looked to domestic and private sector solutions to modernize its transport systems amid ongoing international sanctions and limited foreign financing options.
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