Tehran, July 5 (MRUD NEWS)—Following agreement for financing construction of Rasht-Astara Railway signed between Iran and Russia transport ministers on May 17, affiliated companies to these two countries signed the executory contract yesterday for the construction of a railway in Iran, which will be part of the International North-South Transport Corridor (INSTC) linking South Asia to Northern Europe.
The contract was signed on the sidelines of trilateral meeting of Iran, Russia, and India on the INSTC for the facilitation of transit through the INSTC hosted by the Iranian Roads and Urban Development Ministry in Tehran.
The design of the 162-km railway between the northern Iranian cities of Rasht and Astara, which will be built as part of the INSTC, is expected to be completed by the end of 2023, and the operations to implement the project will begin in 2024.
As per the contract, Russia will invest €1.6 billion through finance in the construction of the strategic railway along of the INSTC, which is anticipated to be completed within 48 months.
Iran has a good rail network from the Bandar Abbas in the south to Rasht in the north; however, the 162-km Rasht-Astara railroad has been the missing rail link along the International North-South Transport Corridor (INSTC) which its completion is vital for the regional rail transit.
During the meeting, Igor Levitin, aide to the President of the Russian Federation, said the freight transit will reach to 30 million tons per year. Moreover, he informed of Russian investments for shipbuilding.
Further on joint cooperation, Ali Akbar Safaei, the managing director of Iran's Ports and Maritime Organization (PMO), informed of the contract for building 4 ships in Iran and 2 ships in Russia mainly through Russian finance.
Additionally, for the import of ships through agreements with Russia, 30 ships have entered the Caspian Sea so far, which has greatly reduced the cost of sea transportation.
Safaei also informed of preparing contracts for investments in Shahid Rajaei Ports in the railway and port equipment, ship building and purchase, and also dredging.
Every year, more than 10 million tons of goods are transited along the INSTC, which is mainly imported by sea and further to the north by rail and road.
The International North-South Transport Corridor (INSTC) is an important multimodal transport route for freight transit between India, Iran, Azerbaijan, Russia, Central Asia and Europe.