Russian Railways subsidiary RZD International has signed a €1.2bn contract with Iranian Islamic Republic Railways (RAI) to electrify a rail line that connects north-central Iran to the northeastern border with Turkmenistan.
RZD International will design, supply equipment and materials and carry out the electrification of the railway line, 203km of which is on mountainous terrain.
In addition to the construction of power stations and overhead power lines along the 495km Garmsar-Sari-Gorgan-Inche Burun route, the project will be financed by a loan from the Russian Government to Iran.
Scope of work also includes manufacturing all electric locomotives in Iran and building 32 stations and 95 tunnels.
The project is expected to be completed in three years.
RAI managing director Mohsen Pur Seyed Agayi said: "The implementation of the contract will improve the capacity of passenger trains and raise transit to eight million tonnes.
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"With the implementation of this contract, besides the electrification of the line, tunnels on the way will be enlarged, enabling Russian and other transit wagons to ply conveniently on it.
"Overall, we will witness the establishment of an electrified and modern train line in the country’s north."
Following completion, the rail line will extend to Turkmenistan and Kazakhstan connecting Central Asia to the Persian Gulf and beyond.