|Chinese companies to invest $2b in Iranian railway project: minister||
TEHRAN – Two Chinese companies will invest a total of $2 billion in the implementation of the Tehran-Mashhad railway signaling project in Iran, Iranian Transport and Urban Development Minister Abbas Akhoundi said.
Railway signaling is a system used to control railway traffic safely, essentially to prevent trains from colliding.
The Chinese companies CMC and SUPOWER have signed a deal with the Iranian Railways Company to invest in the 900-kilometer Tehran-Mashhad railway signaling project.
A consortium comprised of subsidiaries of the Iran Power Plant Projects Management Company, known as MAPNA, will cooperate with the Chinese partners in the project.
According to the project manager, Qasem Saketi, the Chinese companies and the Iranian partners will co-finance the project on an 85 percent/15 percent basis, the Fars news agency reported.
The project is to improve the current Tehran-Mashhad railway for trains with 200km/h speed, build electric railway for trains with 250km/h speed, and supply 70 electric locomotives.
On February 23, Iran and China signed an agreement in Tehran, finalizing a roadmap to double bilateral trade over the course of three years.
The two countries expressed interest in boosting cooperation in a wide range of areas, such as the industrial, oil, gas, petrochemical, mining, banking, transportation, energy, communications, and information technology sectors.
In December 2013, then Iran-China Joint Chamber of Commerce chairman Asadollah Asgaroladi announced that annual trade between Iran and China could reach $38 billion by the end of Iranian calendar year 1392 (March 20, 2014).
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