Iran, S. Korea Ink €720mln Deal to Build 450 Wagon Trains

As per an agreement, the Korean company will be forming a consortium with Iranian Rail Industries Development Co.

The South Korean side will be financing the project. Iran signed its biggest credit line deal in recent years with South Korea’s Eximbank in August. The deal envisages as much as €8 billion in loans provided by South Korean companies to finance various projects in Iran.

Iranian Minister of Roads and Urban Development Abbas Akhoundi who was present at the signing ceremony said when completed, the project will create jobs for 4,700 people in Iran and increase the capacity of Iran's suburban transportation to 70 million passengers per year.

“The project entails technology transfer to Iran and will generate 1,000 direct and 1,700 indirect jobs in the process and some 2,000 jobs after it comes on stream,” Akhoundi added.

According to the minister, it will take the South Korean side six and a half years to build the 450 wagons.

A further 150 wagons are to be built for Iran as per a previous contract between Iran and Hyundai Rotem, he explained.

“By the end of the contract period, we will have 600 self-propelled suburban railbuses.”

Hyundai Rotem Company manufactures and sells railway vehicles, defense systems, and plants and machinery in South Korea. The company produces railway vehicles, such as electric multiple units, high-speed trains, light rail vehicles, magnetically levitated vehicles, trams, diesel multiple units, locomotives, and passenger coaches. The company was founded in 1999 as Korea Rolling Stock Corporation, the result of a merger between the three major rolling stock divisions of Hanjin Heavy Industries, Daewoo Heavy Industries, and Hyundai Precision & Industries. Hyundai Rotem currently employs 3,800 and exported to 29 countries worldwide.

source : fars