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.

"The implementation of the contract will improve the capacity of passenger trains and raise transit to eight million tonnes."

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

"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.