Iranian company in talks with Siemens to make wagons

EghtesadOnline: An Iranian company is in talks with the German Siemens for cooperation on building wagons, according to Deputy Minister of Industry Mojtaba Khosrowtaj.

News ID: ۷۳۷۳۱۶

03 October 2016

If the cooperation bears fruit, it will obviate the need for importing wagons from Russia, Khosrowtaj said.

There are four wagon makers in Iran, grounded by old technology and financial problems, reports ILNA.

Government spokesman Mohammad Baqer Nobakht ib August 30 said the government had Okayed $2 billion finance to go to the four firms for wagon making.

A deal by the Islamic Republic Railways to buy about 500 wagons from Russia was revoked early June by the General Inspection Office, which announced home-made wagons were prioritized over foreign-made.

A January 20 report said a private company in Iran had lease-purchased 500 cargo wagons from Russia.

Deputy Minister of Transport of Iran Mohsen Pourseyyed Aghaei in reference to the contract had said then that the most suitable way for Iranian companies to acquire wagons is lease-purchasing.

Iran’s transport sector has remained underdeveloped due to mismanagement as well as international sanctions.

The imports were discussed at a time when Iran is itself a producer of wagons. A May 16 report said the major Iranian wagon maker Pars Wagon was operating at 25 percent of its full capacity because of scanty liquidity with railway companies and too few orders from customers.