TEHRAN – Iranian government has allocated 150 trillion rials ($300 million) to the private sector to strengthen its rail fleet, paving the way for new locomotives and passenger wagons to enter service as part of the country’s Seventh National Development Plan, the head of the national railway company said.

Jabarali Zakeri, deputy transport minister and head of the Islamic Republic of Iran Railways, said the funding was provided through a special government deposit mechanism aimed at mobilizing private capital and upgrading rail infrastructure.

Speaking at a press conference on the sidelines of the ninth International Transport, Logistics and Related Industries Exhibition, Zakeri said the financing would support the purchase or refurbishment of 80 locomotives and 130 passenger wagons.

He said Iran has also been seeking to strengthen rail-based transit diplomacy in talks with neighboring countries, positioning its rail network as a regional hub to increase trade flows.

“Transport performance should not be assessed solely on transit volumes,” Zakeri said. “Exports, imports and transit cargo must all be taken into account, as this approach directly affects the economics of transport companies, producers and logistics operators.”

Zakeri outlined progress on several cross-border rail projects, saying work had begun on a rail link between Shalamcheh and Iraq, while the Kermanshah–Eslamabad-e Gharb route is expected to become operational soon. This would establish a second rail connection between Iran and Iraq via the Khosravi border crossing.

On the western corridor, he said construction was under way on the Tabriz–Marand–Cheshmeh Soraya line, which is designed to provide a direct rail link between Sarakhs in northeastern Iran and Turkey, completing the southern branch of the east–west corridor.

In northern Iran, Zakeri said rail connections at Jolfa, Astara, Caspian Port, Amirabad Port, Incheh Borun and Sarakhs are already active. He added that improved facilities following the connection of the Lotfabad border crossing to Turkmenistan have helped increase inbound cargo volumes along that route.

Turning to the eastern corridor, Zakeri said the Khaf–Herat railway is now operational, sharply boosting rail trade with Afghanistan. Cargo volumes on the route have risen from about 15,000 tons last year to around 400,000 tons this year, with projections of 1.2 million tons in 2026.

He said rail connectivity with Pakistan is also being strengthened, noting that Pakistan is upgrading its rail infrastructure while Iran is constructing the Zahedan–Mirjaveh line to facilitate wagon exchanges between the two countries.

Zakeri said the Chabahar–Zahedan railway remains a strategic project for Iran’s transit ambitions. If track-laying is completed by the end of the current year, operations could begin in the first half of next year, he said.

He added that the latest investment package would help modernize the rail fleet, improve service quality and expand passenger and freight capacity, supporting the government’s broader development and regional transit objectives.

EF/MA