Deputy head of the Islamic Republic of Iran Railways Babak Ahmadi and South Korean manufacturer Hyundai Rotem’s representative have signed a contract in Tehran to build 450 diesel cars. Under the EUR 720.47 million contract signed with Iranian Rail Industries Development Co (Irico), 150 cars will be produced in South Korea, and 300 cars will be manufactured by Irico, with Hyundai supervision. The duration of the project is 78 months, and the first set of the carriages will be delivered in less than 1.5 years.
The contract also includes transfer of technology, enabling the state-owned Iranian company to manufacture rail carriages under license. South Korea will also provide financing for the project, Deputy Minister of Roads and Urban Development Saeed Mohammadzadeh said. South Korea’s Eximbank signed a contract with Iranian banks in August to provide EUR 8 billion in loans for financing various projects by South Korean companies in Iran.
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