German industrial group Siemens is ready to support infrastructure projects worth EUR 3 billion in Iran. According to the official Iranian media, Asghar Fakhriyeh-Kashan, Deputy Urban Development Minister, said discussions were held with the German side at the beginning of August referring to the group’s implication in rail and energy projects.
Siemens has been one of the first European companies that decided to access the Iranian market after the removal of economic sanctions in January 2016. The German group expressed its interest to participate in Iran rail modernisation projects and signed, last year, in October, an agreement on the delivery of 50 diesel-electric locomotives to Iranian Railways. Under the contract, the locomotives will be built by Siemens in the production unit of Karaj, the fourth biggest city in Iran.
Deputy minister Fakhriyeh-Kashan said that locomotives will be put into service on the future high-speed railway Tehran – Qom – Isfahan. At present, China Railway Group executes the project for the electrification of this railway for USD 1.8 billion (EUR 1.5 billion). Siemens will collaborate in this project by supplying signalling equipment and installing telecommunications systems.
Siegfried Russwurm, member of Siemens Board, said that “Siemens Group is delighted to be a part of Iran rail system modernisation projects by delivering modern rail products to the railway operator”.
By 2025, Iran plans to expand its rail network to a total of 25 000 km, which will be of significant help for its 80-million population.
Therefore, for the next 8 years, the Iranian State plans investments of around USD 25 billion in railways and procurement of rolling stock.
Moreover, Iranian Railways announced they would launch a series of freight-dedicated corridors for commercial operation to Europe.
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