Italy signs $1.3 billion High Speed Rail deal with Iran

Global Economic Security

Field of Cooperation - Railway Networks

The Italian and Iranian state railway companies have signed a deal worth $1.3 billion, to build a high-speed rail line between the Iranian cities of Qom and Arak. 

Another link is to be built between Tehran and Hamadan, making the overall deal worth 5 billion euros, with Ferrovie del Stato (FS) initially signed under a framework agreement when former Italian PM, Renzi visited Iran with a delegation of business leaders in April this year.

The Italian group has also been connected with the planning and construction of a high speed rail corridor between Tehran, Qom & Isfahan, including the electrification of the rail link between Tehran and Tabriz on the way to the Caucasus and Turkey.

Iran plans to invest $25 billion over the next 10 years in the modernization and expansion of its railway network, stretching out its railroad line to 25.000 km by 2025, from 15.000 km now. Iran has dedicated 1% of oil & gas sales to rail development.

The country’s expansion plans include aligning its railway infrastructure with regional rail networks in the Persian Gulf, the subcontinent and Central Asia.

In July 2015, France signed a $7 million deal for redevelopment of three main railway stations in Iran. SNCF will rebuild the stations in the Iranian capital, Tehran, as well as the holy cities of Mashhad and Qom, which attract million of pilgrims each year.

Press TV / AA Magnum News 2017.

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