Transmashholding, the Russian rolling stock producer and Iran’s Industrial Development and Renovation Organization (IDRO) signed an agreement that provides for the setting up of a joint venture for passenger railcars and metro units manufacturing.
The Russian side will provide 80% of the EUR 2.5 billion needed for the manufacturing of rolling stock.
Transmashholding is the largest producer of locomotives and railway equipment on the Russian market.
The Memorandum of Understanding has been signed between the two sides since March this year.
The Iranian Railway Company (RAI) owns an active rolling stock fleet of 24,000 freight cars and 2,000 passenger railcars as well as 100 locomotives.
Iran has voiced its intention to expand its current 11,000 kilometers rail network to 25,000 kilometers over the next five years. For these reasons, the need to increase their railway equipment, including the number of railcars becomes clear.
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