Iran Is Seeking to Boost Its Railway Network, ranking 64th globally

iran is seeking to boost its railway network, ranking 64th globally (1)

Tehran: Iran plans to boost its railway network, as it now ranked 64th out of 90 for development of railways throughout the world. This was indicated by Mohammadreza Rezaei Kouchi, who is chairman of the Iranian Parliament’s Civil Commission. This comment was made at an event seeking private companies to invest in the railways of Iran. Kouchi said that the railway project is “important, not only on the grounds of speeding travel time, but for saving energy and preventing emissions of air pollution.” He added that the advancement of the railways should be an indicator of a country’s advancement.

Fuel Subsidies vs. Infrastructure

Kouchi also criticized the government on the spending of money. “Iran spends some 5,000 trillion rials a year, just on fuel subsidies”, money, which he feels could be better spent investing on the country’s transport infrastructure, especially railways. According to statistics from the World Bank, Iran has recently fallen far behind most other nations in rail developments. However, Kouchi added, new investors are helping to foster optimism of better advances.

Vision: 30% Rail Travel

The Iranian government has a stated goal of establishing 30% of all cargo and staff travel engaged in rail in the future, and it is planning to incorporate this into Iran’s Seventh Development Plan. At the moment, 50 million tons of cargo and 35 million passengers use transport services each year, however very little of this occurs via rail. He stated that road networks are much more open or accessible in Iran, and it is difficult for people and businesses to use rail transport. He thought railways were compensated well enough, he believes it could provide a great alternative to cars or trucks usage.

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Call for Modern Trains and Technologies

Kouchi previously stated Iran needs new and modern electric and high speed trains to promote rail travel. He thinks modern rail can provide a strong alternative against private cars.

He commended the role of the private sector and stated that parliament and government must work together to provide a proper amount of funding and financing.

Lack of Trust and Team Cohesion

Finally, he stated that there are more than 75 000 unfinished infrastructure projects in Iran and in order to finish this the country must create trust and provide much more motivation for private investors.

Kouchi noted that the country has a tremendous opportunity to develop its railway system, but that opportunity will go to waste without preparation and trust.

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Omar Haddad is a technology and business journalist who writes about startups, fintech innovations, and digital growth in the Middle East.

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