TEHRAN – The Islamic Republic of Iran Railways (RAI) has launched a second round of cooperation with the private sector to modernize and renovate its passenger and freight fleet, aiming to boost seating capacity by 15 percent and improve service quality for travelers.

The initiative aligns with the Leader Ayatollah Ali Khamenei’s designation of the Persian calendar year 1404 as the “Year of Investment for Production,” emphasizing investment as a critical tool to drive economic growth. In this context, RAI has taken steps to attract private capital for overhauling its aging rolling stock.

A landmark $750 million investment agreement was signed in late April between RAI and private firms, in the presence of the transport minister, the railway chief, and key stakeholders in the rail industry. Under the deal, Iran aims to procure 600 tank freight wagons, 300 diesel multiple unit (DMU) passenger cars, 50 locomotives, and 650 bulk freight wagons.

Railway officials said 100 tank wagons have already been added to the national rail fleet and are currently being used to transport oil products from Iraq’s Kurdistan Region to Afghanistan. Authorities expect 40 to 50 additional wagons to join the network each month. In the passenger segment, a contract has been signed with a Chinese partner, with financial and technical issues resolved.

On Sunday, July 20, Transport and Urban Development Minister Farzaneh Sadegh oversaw the signing of a new investment deal worth over 882 trillion rials (about $1.76 billion) to support the modernization of the passenger fleet.

EF/MA