French firm awarded Iran rail contract

05 July 2015

Station building deal signed as Tehran plans to spend $25bn on rail network by 2022

  • French firm understood to have signed Iran rail contract
  • Stalled projects could press ahead if sanctions are lifted

French firm AREP is understood to have signed a €7m ($7.7m) contract to construct stations for rail networks in Iran.

According to local reports, AREP will develop several transport projects in Tehran, Mashhad and Qom.

Iran currently has two contracts with France’s Alstom Transport and Germany’s Siemens to build and supply locomotives.

Iran plans to allocate $25bn to develop its rail network by 2022, according to local media reports, which quoted Abbas Akhoundi, Iran’s roads and urban development minister.

As population growth continues to put pressure on urban areas across Iran, the Tehran long-term urban rail plan comprises four express lines covering 179 kilometres and eight urban lines of 251km. The aim is to have five complementary tram lines across 60km, along with 13 main interchange stations, 54 transfer stations, 19 park-and-ride facilities and 10 public transport hubs to connect with other transport modes. 

Major infrastructure projects are expected to move forward if nuclear talks with the US reach a successful conclusion. The easing of sanctions will mean Tehran can press ahead with stalled rail and metro projects.

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