Italy and Iran ink EUR 1.2 billion rail agreement

Iran’s national rail company, the Islamic Republic of Iran Railways, will sign a EUR 1.2 billion deal with its Italian counterpart, Ferrovie dello Stato, on July 11 to build a high-speed railway between the cities of Qom and Arak.

The deal follows an agreement in February last year that saw Italy promise Iran EUR 5 billion in export credits in return for contracts to build the 135-km Qom-Arak line and a 320-km link between Tehran and Hamedan.

Italy will also provide rolling stock for high-speed and conventional lines, training for Iranian railway managers, and a research centre to develop railway technology.

Iran is in the throes of an immense extension to its railway system. According to IRIR’s plans, the present network of 15,000km will be expanded to 25,000km by 2025. Some 7,500km of this extra track is already under construction.

“The FS group will supply assistance to the Iranian railways … for both high-speed and conventional rail lines, including a complete program for training personnel,” read a statement from Ferrovie dello Stato. 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.

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