Iran and Russia will prepare a general contract on the construction of Rasht-Astara railroad in Iran in the coming months, which is part of the International North-South Transportation Corridor, Russian Transport Minister Vitaly Savelyev told reporters.
"During a visit to Iran, we talked through the main terms. Now we are exchanging letters, as we agreed with the transport minister of Iran, Mehrdad Bazrpash, and will present our companies from both sides that will participate in this. We think that in the near future, a few months might be needed to draft a general, main, contract between our companies for them to start implementing this project. Money has been allocated, now we need to prepare for implementation," Savelyev said when asked if a construction contract had been signed.
He said the railroad will be built jointly, but there will be a separation.
"Construction materials that are clearly significantly cheaper in Iran, such as cement, sand and gravel, will be acquired in Iran. More complex products, the main component of the financing, will go to Russian companies. This include rails, prefabricated concrete products, locomotives, automation equipment, signaling and so on," Savelyev said, adding that "we are now quickly looking for companies from both sides that will participate in this."
Asked about the planned gauge of the track, he said the plan is to build a dual gauge line.
"We will start with 1435 gauge, but we will build a dual gauge that will make it possible to lay another rail [for 1520 gauge] if it is necessary to expand shipping volume," Savelyev said.
Earlier in May, Russia and Iran signed a cooperation agreement on financing the design, construction and provision of goods and services for the construction of the Rasht-Astara railroad. The document was signed in the presence of Iranian President Ebrahim Raisi and President Vladimir Putin, who joined the ceremony by video call.
It was also reported that Russia will provide an intergovernmental loan of €1.3 billion to build the railroad, which is expected to be built by the end of 2027. The overall cost of the project is €1.6 billion.