TEHRAN – The newly appointed Head of the Islamic Republic of Iran Railway (known as RAI) Jabar-Ali Zakeri has said that representatives of the private sector should be recognized and present in the railway industry, the portal of the Iranian Transport Ministry reported.

Speaking in a joint meeting with rail transport companies and wagon and locomotive manufacturers Zakari said: “This meeting was held to hear the concerns and challenges facing the private sector and the railway operators, and such meetings will be continuously held in a specialized and field-based manner.”

“We are in a period of transition and the patterns of state-governed railways should move towards private sector governance,” Zakeri said.

According to the official, the best way to develop the country’s railway industry is for the representatives of the private sector to be recognized in the railway sector so that the opinions of organizations and companies can be used and the private sector can have a continuous presence in different sectors.

Mentioning the shortcomings in the locomotive sector, the RAI head said only 50 percent of the country’s locomotives are operation-ready and the use of the capacity of domestic companies can resolve such shortages.

Recognizing need for creating motivation for investors

Also speaking at the meeting, Nasser Bakhtiari, Chairman of the Board of Directors of Passenger Rail Transport Companies Trade Union, emphasized the importance of productivity and the role of the private sector in improving the rail sector.

“Support for rail transportation companies should be increased and an incentive environment should be created for investors to be willing to invest in this sector,” Bakhtiari said.

He also pointed out the necessity of creating clear and reliable mechanisms for pricing the products manufactured by the private sector and stated that the most important challenge in the railway sector is the locomotive sector.

Govt. should support private companies financially

In this meeting, Rahmatollah Pourbabaei, the secretary of the Iranian Railway Industry Association, warned against the decrease in the activity of wagon and locomotive manufacturers in the country, noting that producers in this sector are not working on full capacity, and if necessary investment and support are not made in the form of funding, there is a possibility of closing the factories of this industry.

“Last year, about 130 million dollars of foreign currency was allocated to the railway industry, while the automobile industry received 13 billion dollars of funding,” he said.

EF/MA