Wagon Pars Back on Its Feet

EghtesadOnline: CEO of Iran’s Wagon Pars Company says his company was revived under President Hassan Rouhani’s government, which has boosted rail expansion with an eye on propping up domestic industries.

News ID: ۷۷۶۳۳۳

20 May 2017

“Wagon Pars is currently working at minimum capacity. With the government’s support, the capacity can be increased,” Mohammad Mokhtari was also quoted as saying by ILNA. He referred to a deal Iran recently reached with the Russian wagon manufacturer United Wagon Company to jointly produce 6,000 freight cars with Iranian companies, noting that Wagon Pars will produce 2,200 wagons as per the contract.

Based on the €300 million deal signed in February, the Russian company is committed to supplying the wagons within three years, of which 4,900 are to be produced in Iran.

A total of 1,100 CBU (completely built unit) wagons are to be shipped to Iran within two years, 900 of which are to be imported by February 2018, according to a press release of the Ministry of Industries, Mining and Trade. UWC says it will soon start supplying freight wagons, as part of the deal financed by the Russian state-owned import/export insurance company EXIAR, according to Financial Tribune.

The 4,900 cars will be produced jointly with three Iranian companies, including Wagon Pars.  Arak Steel Company will produce 1,250 cars and the remaining 6,000 wagons will be produced by Wagon Kowsar.