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Infrastructure   Transportation  

Chinese Company to Supply 630 Cars for Tehran Subway

China Railway Rolling Stock Corporation Changchun Railway Company (CRRC CRC) and Tehran Wagon Company have won the tender to build and supply 630 cars for Tehran’s Subway on Wednesday.

The project is worth more than €782.66 million and will be financed by the Chinese side, according to the director general of Urban Rail Transportation Bureau of Iran’s Urban and Rural Municipalities Organization affiliated to the Interior Ministry.

“We are negotiating to sign a contract as we speak. The Chinese company Norinco Group will function as the finance coordinator in this project,” Hossein Rajab Salahi told on Saturday. 

The official added that each wagon will cost close to €1.08 million freight on board, to which transportation and customs expenses will be added.

“The Chinese side is to deliver 56 wagons in the form of completely built-up units. Another 70 wagons will be assembled in Iran (complete knock-down) and the remaining 504 are going to be constructed in Iran. CRRC CRC will transfer the technical know-how for the construction of the bogie, engine and the aluminum body to the Iranian manufacturer among others,” he said.

Rajab Salahi noted that he expects ongoing negotiations to pay off soon, adding that if everything goes well, the contract for the project will be signed next week.

“This will be a five-year project. The Economic Council has ratified a plan to add 1,050 rolling stocks to the capital’s subway system. This project will supply 630 wagons. We have plans to sign contracts for the remaining 420 within the next two to three months,” he said. 

Another contract was signed on Wednesday between the Industrial Development and Renovation Organization of Iran and CRRC Nanjing Puzhen Company, a Chinese railroad rolling stock manufacturer, for the design, procurement, supply, manufacture and delivery of 450 subway wagons for the Iranian cities of Ahvaz, Shiraz and Tabriz.

“The project is worth €500 million and will be financed by the Chinese side. The contract was signed by Naqi Manafi, IDRO’s manager for financial and economic affairs, and Wang Tao, general manager of Puzhen,” Ali Araqchi, the manager of IDRO’s international affairs who negotiated the contract, told Financial Tribune.

The official added that a local manufacturer will be selected to implement the project. 

“We are keeping our options open. We want to give all eligible Iranian wagon manufacturing companies a chance,” he said.

Stipulated in the contract, he explained, is that the Chinese company will transfer the relevant know-how so there is a need to set up the production line and the required infrastructure. 

“Puzhen has agreed to invest €25 million for this to come about,” Araqchi said.

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