The Iranian Ministry of Roads and Urban Development and the holding company Islamic Revolution Mostazafan Foundation have signed an agreement to jointly develop a railway that links Iran with Iraq over the next two years.
The partnership agreement, worth nearly $1,5bn, was signed last Wednesday during a cabinet session in Tehran.
The Islamic Revolution Mostazafan Foundation has agreed to supply 60% of the financing and the remaining 40% will be provided by the Ministry of Roads and Urban Development.
The railway will connect the Iranian town of Shalamcheh to the Iraqi city of Basrah, some 35 kilometers long.
The railroad, set to be completed in the next two years, was one of the several Memoranda of Understanding (MoUs) and agreements signed between Iran and Iraq during the recent landmark visit by Iranian President Hassan Rouhani to the western neighbouring country.
The railway will pass over the border River Arvand through a 700-km-long bascule bridge.
The project will boost bilateral trade and help exports of Iranian goods to Iraq from Shalamche and Chazabe border terminals weighing more than 5 million tons per year.
Iran is carrying out mega projects to connect its railways with the neighbouring countries’ railroads, inclduing opening its way to Syria through Iraq.