Iranian Railway Company has signed a contract with Germanys Siemens for the supply of 3,000 wagons, according to a news agency Irna citing Babak Ahmadi Naqedi, senior official with Islamic Republic of Iran Railways.
Iran is expected to start receiving the new wagons in March.
The new wagons will replace units that were built more than 55 years ago, the report said. Wagons that were built 45 years ago are to be phased out this year as well.
It is understood that some 70 electricity-powered locomotives have also been allocated for the Tehran-Mashhad rail route, which is currently being electrified.
Siemens signed in January last year several agreements with Iran to develop its railway network, including the electrification of the Tehran-Mashhad railroad
In November, Germanys government-owned development bank KfW Import-Export Bank (Ipex) is understood to have agreed to provide Iran a 1.2bn ($1.27bn) credit line to help finance the redevelopment of the Tehran-Mashhad rail line.