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Iran signs $2 billion rail deal with India


KABAALI

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Iran and India signed an agreement worth $2 billion for cooperation in the rail sector. A part of the agreement pertains to a memorandum of understanding worth $600 million for Iran to purchase locomotives and freight cars from India. Akhoundi was quoted as saying by the news portal of his ministry that India has expressed readiness to finance the purchases.

Two other projects embedded in the $2 billion deal include the development of Chabahar-Zahedan Railroad worth $1 billion and rail supply for Iranian projects.

India has agreed to build a 500-km railroad from Chabahar to Zahedan, the capital of Sistan-Baluchestan Province, close to the Afghan border. India’s state-owned IRCON has agreed to build a rail route at a cost of $1.6 billion as part of the transit corridor to Afghanistan.

After connecting Chabahar to Zahedan, the railroad will be linked to Zaranj in Afghanistan. When the Afghan cargo arrives in Zahedan, it can be transported by a 1,380-km railroad to Chabahar and then shipped to India.

The new locomotives will help transport passengers and freight in Iran.

“They will also be used in Chabahar-Zahedan railroad to accelerate growth in Chabahar Port in line with India’s goal to connect to Central Asia and ultimately Europe through this Iranian port,” he said.

The first phase of the strategic Iranian port, which India helped develop, was inaugurated by Iran's President Hassan Rouhani on Dec. 3. The opening of the first phase of Shahid Beheshti Port (out of five phases defined for the project) has tripled its capacity to 8.5 million tons (equal to that of all the northern ports of the country). It will allow the docking of super-large container ships (between 100,000 DWT and 120,000 DWT) and increase India’s connectivity with Afghanistan.

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