Iran, Russia Sign Contract to Start Works on Railway Project

Date: 05 July 2023 - 22:13

News ID: ۱۱۶۸۷۵

TEHRAN - Iran and Russia have signed a contract that details the road ahead for construction of a key railway in Iran as part of the International North–South Transport Corridor (INSTC).
The contract signed on Tuesday between senior transportation ministry officials of Iran and Russia comes more than a month after Iranian and Russian presidents oversaw the signing of a deal to finance and build the Rasht-Astara railway.
Iran and Russia have touted the 162 km (100 mile) railway along the Caspian Sea coast as an important link in the INSTC, a corridor that connects India, Iran, Russia, Azerbaijan and other countries via railways and sea and can rival the Suez Canal as a major global trade route.
Experts say the route, which connects Russian ports on the Baltic Sea with Iranian ports in the Indian Ocean and the Persian Gulf, could significantly diversify global traffic flows.
The contract signed on Tuesday outlines executive details of the construction process for the Rasht-Astara railway, including a timetable that starts in early 2024 and ends in three to four years.
Iran’s transportation ministry said the contract allows Iranian and Russian teams to start works on the project site.
Russian presidential aide Igor Levitin who was in Tehran to attend a trilateral meeting with Iranian and Indian authorities on the INSTC said the Rasht-Astara railway will be built through a finance mechanism agreed between Moscow and Tehran.
He said Russia hopes the volume of cargo transit through the INSTC could reach 30 million metric tons per year, adding that Moscow has also earmarked funds for expanding its shipping fleet in the Caspian Sea to help boost trade through the route.