Contract for Provision of 2000 Subway Wagons to Be Signed Soon

Deputy Minister of Industry, Mine and Trade and Head of Industrial Development and Renovation Organization of Iran (IDRO) during his visit to the 9th International Exhibition on Rail Transportation and Related Industries Equipment in Tehran on Wednesday announced signing of a contract for providing 2000 wagons for the country’s subway system in the near future.

Ali Nabavi said that considering finalization of documents for financing the project for providing 630 wagons for Tehran Subway in the form of the consortium of Tehran Wagon Manufacturing and China’s CRC, the contract for managing the provision of the urban rail wagons will be signed between Municipalities and Village Administrations Organization as the employer and IDRO as the manager of this project.

He stipulated that this contract will be based on the approval of the Economy Council aimed at centralizing required demands of the urban train of ten metropolises of the country with an approach to improve the share of subway wagon manufactures in order that IDRO can carry out the management of the provision project for providing the rail fleet project with using its experiences in the field of project management in the oil and gas projects.

Nabavi noted that for implementation of this project all main manufacturing groups have been identified, adding that accordingly, in the first step the project management for provision of 630 subway wagon for Tehran is on the cards and in the other phases, the project will be for other metropolises (Shiraz, Isfahan, Karaj and Tabriz).

He expressed hope that by using the modern technologies, the domestic share for manufacturing wagon would increase in the rail fleet.

He said that currently the domestic share for manufacture of wagon is around 40% and according to the defined schedule, this share is expected to rise to 85% by completion of this contract. He added that it is expected the manufacture of 630 wagons to cost over 700m euros.