TEHRAN – Iranian Transport and Urban Development Minister has said that his ministry plans to renovate 65,000 worn-out trucks from the country’s suburban cargo transport fleet within three years, IRIB reported.

Mohammad Eslami made the remarks on Saturday in a signing ceremony for a trilateral deal among Road Maintenance and Transportation Organization (RMTO), Iran Khodro Diesel, and Tose'e Ta'avon Bank for the renovation of 1,000 worn-out trucks.

As reported, the ceremony was attended by senior officials, including the new Acting Industry, Mining and Trade Minister Jafar Sarqeini, RMTO Head Abdolhashem Hassan-Nia, Managing Director of Iran Khodro Company Farshad Moqimi, and the Managing Director of Tose'e Ta'avon Bank Hojatollah Mahdian.

Referring to a deal concluded between Bank Saderat Iran (BSI) and the RMTO with the private sector two weeks ago, Eslami said: "That contract covered the renovation of 5,000 trucks based on the fleet modernization plan and the contractor company is committed to deliver more than 2,000 vehicles this year.”

The minister further pointed to the deal signed among the RMTO, IKCO and Tose'e Ta'avon Bank and noted that this agreement has the capacity to be expanded to over 5,000 vehicles.

According to Eslami, at this stage, trucks with an age between 40-60 years are the priority for this scheme.

Earlier this month, RMTO signed a tripartite deal with BSI and some private companies for the renovation of 5,000 worn-out trucks, tow trucks, and refrigerated containers.

Based on the Transport Ministry data, the private sector has invested about 140 trillion rials (about $3.33 billion) in this project, while BSI is going to provide the owners with low-interest facilities equivalent to the 80 percent of the new trucks’ price.

According to RMTO, the country’s suburban freight transportation fleet is currently comprised of 387,000 trucks of which about 52,000 are older than 40 years.

Back in May, Transport Ministry unveiled a portal for registering in a program for the renovation of the country’s road transportation fleet.

Speaking in the unveiling ceremony, Eslami had said that the renovation of the country’s road transportation fleet is going to increase the number of vehicles able to transit goods to other countries to 100,000.

According to the minister, the modernization of the transportation fleet, in addition to improving the country’s transport capacity, will save the country 530 million liters of fuel worth nearly $960 million.

He noted that to accelerate the implementation of the plan, 25 domestic companies are going to participate in the program and foreign vehicles under three-years of age will also be considered to replace the old fleet.

EF/MA