Iran, Russia sign a 2.5B contract on wagon manufacturing

Iran’s Industrial Development & Renovation Organization (IDRO) signed an agreement with Russian Transmashholding Company to establish a joint venture for manufacturing wagons for railroads, Trend’s correspondent reported from the event July 31.

The Russian side will provide 80 percent of the 2.5 billion euro agreement for manufacturing passenger wagons, including the metro wagons.

Transmashholding is the largest manufacturer of locomotives and rail equipment in Russia.

IDRO and Transmashholding finalized a memorandum of understanding (MoU) to boost cooperation in production of railroad cars in March of 2017.

Iran possesses about 24,000 cargo and 2,000 passenger wagons, as well as 100 locomotives which are currently actively being used.

Iran plans to expand its railway grid from the current 11,000 km up to 25,000 km within the next five years, which explains the need for more equipment, including the wagons.