TEHRAN -- Managing Director of the Iranian Islamic Republic Railways Mohsen Pour-Seyd Aqai said here on Tuesday that Iran's railroad network can transport 14.5 million passengers a year should a five-fold increase in facilities be provided.

Speaking to IRNA, Aqai added that according to the figures and studies in this respect, the annual demand for railway journeys stands at 80 million.

He recalled that once the country's rail facilities are renovated in the Third Five-Year Plan (March 2000-2005), the number of passengers travelling by train will rise to 21 million per year.

Referring to the fact that improving railway capacity might not be achieved in short-term, he added that it may occur in a span of two to three five-year development plans.

He said that out of 116 trains carrying 40,500 passengers daily, 26 operate on Tehran-Mashhad route. He added, "Given the increasing number of passengers visiting Mashhad, three more trains will be added to the Tehran-Mashhad route as of September, increasing the number of passengers to 19,000 daily."

Turning to the shortages of railway wagons and various ways of supplying the required facilities, he said that contracts have been signed with Pars Wagon Company to supply 94 wagons, while 150 other wagons are to be purchased from China and Germany. Every wagon costs four billion rials.

The Iranian Islamic Republic Railways also signed a contract last year for the manufacture of 100 locomotives worth $200 million.

Two locomotives were delivered recently, while 22 will be supplied by the end of current Iranian year (March 2003) and the remaining 76 are due in two years.

He added, "Once these wagons and locomotives as well as the 20 trains are delivered next year, the passenger capacity would rise to 6.5 million.

"Delay in arrival time for trains will decline considerably with the double-track Tehran-Mashhad railway becoming operational in the near future.

"The speed of passenger trains are expected to increase from 120 kms/hr to 160 kms/hr once the new locomotives join the railway fleet. This will reduce travelling time between Tehran and Mashhad by three hours."

He put the allocated credit for the railway sector in the current year at Rls.480 billion.

The official called on the private sector to invest in the renovation and development of rail transportation.