With most sanctions lifted, Iran is going all-in on its potential to become a transport hub in the heart of Eurasia, returning the country to its traditional position as a vital link between East and West.
However, Iran’s transportation dreams have a major problem in the current reality: decades of sanctions have left the country’s rail lines archaic and in disrepair. To fix this, Iran is devoting 1% of its oil and gas sales to rail development, amounting to a roughly $25 billion initiative to revitalize its existing rail network as well as add on 10,000 kilometers of new rail lines by 2025 — creating a yearly demand for roughly 8,000-10,000 new wagons in the process.
Iran’s rail ambitions are currently a shining beacon for rail engineering and rolling stock firms from all over the world, who are lined up at the gates of Tehran licking their chops in gleeful anticipation for the infrastructure building melee that is about to begin.