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Iran needs rail sector’s development for economic growth

13 October 2017 [11:08] - TODAY.AZ

By  Trend


Whereas high-speed passenger trains regularly top 200 mph and even crack above the 300 mph mark, Iran has only a couple of trains that can do 100 mph. Freight trains in Iran, nonetheless, are traveling at 40 mph.

There is no doubt that increasing the speed of trains will hugely improve the country’s transit volume.

According to world statistics, the value of rail transported goods improved from $6 trillion to $19 trillion in the years 1990 to 2016.

According to Iran’s economic visions, rail should be responsible for 30 percent of the country’s freight and 20 percent of its passenger transport.

The country’s current five-year development plan, which envisages an 8 percent economic growth, says 25.3 percent of development fund should come from foreign sources.

So far, the Iranian Ministry of Transport has put forth some $12 billion worth of projects in the rail sector.

Since 2016, when Iran was freed from sanctions, China’s Sinosure has provided 1.9 billion euros to building the Tehran-Qom-Esfahan railroad.

Also China’s Exim Bank has provided $1.7 billion to electrification of the Tehran-Mashhad railroad.

Russia has also finalized investment of 1.2 billion euros to electrifying the Garmsar-Inche Borun railroad.

Also, authorities say in near future a 1.7 billion euro finance deal with Germany will be finalized, which will go into the Transport Ministry projects.

URL: http://www.today.az/news/regions/165741.html

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