The railway industry is one of the main infrastructures and economic development basis of each country, thus its quantitative and qualitative development has always been the main concern of the policy makers. According to the country’s 20-year vision plan, the rail transportation share in suburban passenger transport and freight transportation should increase from 4 to 18 percent and from 10 to 30 percent respectively. In this regard and considering the importance of increasing the productivity of freight transportation in industrial projects development, the National Railway Company have defined numerous projects in order to reduce bottlenecks and increase the freight transportation capacity including the 2nd-Track rail way project from Chadormaloo to Ardakan.
This 200 km path is one of the main mineral and steel transit routes of the country and due to the geographical location of iron ore mines and steel producers and the developmental horizon of the steel industry, it is expected that the operating capacity of this railway would increase from the current 10 million tons to 19 million tons which requires an investment amount of almost 6500 billion rials.
A Memorandum of Understanding (MoU) was developed between Islamic Republic of Iran Railways Company and a consortium consisting of Kayson and Theta-energy companies in order to finance, design and construct this project by which the administrative arrangements for project financing will conducted through formation of the project fun in exchange market.
Regarding the importance of this project in the railway transit network, the railway company has considered various incentives for investors, including:
- the right of access to the current and new railways for investors
- guaranteed minimum income of investors
- Possibility of issuing guarantees to the National Development Fund, the Stock Exchange market and banks
- Guaranteeing the fluctuations in the project’s currency of more than 10 percent annually
- Project expected profit rate from 25 to 30%
- Adjusting project profitability with long-term commitments of investors