Runaway Train

Country-by-country summary
Iran
The Islamic Republic of Iran’s (Iran) strategic position on
the crossroads of the East and the West and the Silk Road
partly explains why Iran was at the forefront of development
and innovation in transport in centuries past. The Persian
Royal Road, built in the 5th century BC, is a monument
to the Persian Empire, extending 2,400 km, while the
Trans-Iranian Railway, which came into operation in 1939,
connects the Persian Gulf with the Caspian Sea via Tehran
and extends over 1,392 km. Iran’s development in the rail
sector has, however, been slow over the last three decades,
with just 5,550 km of track being built since the 1979 Islamic
Revolution.
Unsurprisingly, fresh impetus has been injected into Iran’s
rail industry after the lifting of the UN secondary sanctions
in January 2106. The development of the national rail
network is a high priority for Iran as President Rouhani plans
to extend the existing rail network from 13,000 km to 25,000
km by 2025 and spend USD28bn on railways (although this
figure is still awaiting parliamentary approval).
Since the cessation of the sanctions, a number of railway
deals with France’s Alstom and Société Nationale des
Chemins de Fer (SNCF), Italy’s Ferrovie dello Stato (FS) and
German multinational Siemens AG and DB International
have been signed. The following are of note:
High-speed rail – Italian participation
In February 2016, FS signed a MOU with the Islamic Republic
of Iran Railways (RAI) to design and build two high-speed rail
lines in Iran, one linking Tehran to Hamadan and the other
from Arak to Qom. The total value of the export credit for the
railways is worth USD5.65bn. 134 As part of the deal, FS will be
responsible for the planning and construction of a highspeed
rail corridor between Tehran, Qom and Isfahan. 135
58 Runaway train | January 2017